The Auckland Star: WITH WHICH ARE INCORPORATED The Earning Rems, Morning Rems and The Echo. MONDAY, MARCH 26, 1906. LAND VALUES AND TAXATION.

Auckland Star, Volume XXXVII, Issue 73, 26 March 1906, Page 4

The Auckland Star: WITH WHICH ARE INCORPORATED The Earning Rems, Morning Rems and The Echo.

MONDAY, MARCH 26, 1906. LAND VALUES AND TAXATION.

Tor the cause that lacks «ei«taiK>o, For the wrong that needs retUtano*, For the future in the And the good th-at we can do. —

Not even the most ardent Radical could desire a clearer indication of the thoroughly progressive views of the new Liberal Government than is afforded by the Land Values Taxation Bill, -which has just been read a second time in the House of Commons. This measure provides for the separate valuation of sites and. the imposition of a maximum 10 per cent, rate on site values; its object manifestly "being to prevent the landowner from evading his responsibilities toward the State. Under the conditions now existing in the United Kingdom, the landlord, more especially in the crowded citieSj secures a heavy rental from his monopoly of building space, and throws upon the lessee the full weight of land taxation. In such circumstances an increase iv the land tax would mean only a rise in rents, which would react most disastrously upon the classes least able to bear any additional burdens. A land tax such as is proposed by the Liberals is a very different matter from the rating on unimproved values advocated by certain enthusiasts in this colony. The purpose of this measure is merely to distribute the incidence of taxation more equitably and to compel the landowner to contribute his due share to the financial resources of the country. The new Land Values Taxation Bill is apparently intended to apply to Scotland only; and it is anticipated that Government will be content for this session with the affirmation of the general principle represented by the bill. But when the precedent is once established, we may expect to see this measure gradually extended in scope till it applies at least to all the densely popula-ted centres of the United Kingdom.

It must be remembered that this proposal to tax site values is not a novelty just invented by the Liberals. The Royal Commission on Local Taxation issued a separate report on urban rating and site values, signed by Lord Balfour of Burleigh, fc>ir G. Murray, and other members, who can hardly be accused of violently Radical sympathies. This report states that "site and structure which are now combined for rating purposes differ so essentially in character that they ought to be separately valued; that when separated from structure, site value is capable of bearing somewhat heavier taxation, and should be made to bear it, subject, however, to strict respect for existing contracts; that the differential treatment should take the form of a special site value rute payable in part by means of deduction from rent, and that thus a part of the burden should visibly fall on those who have interests superior to those of the occupier." The Commissioners believed that if this were done

several important advantages would be secured. The urban rating system would be placed on a more equitable basis. The change would make the ground-owner contribute more largely to local taxation, and it would do something to facilitate building and thus help to the solution of the housing problem. As to "the plots of land which may sometimes be seen In Important thoroughfares lying waste and neglected, destined for no purpose but building, yet withheld from the builder," the Commissioners had no doubt as to the propriety of imposing a tax on site values or the ease with which the desired object could bo attained. All this shows cleaTly that even beforte the Liberals took office, in the eyes of leading members of the Unionist Party the time was ripe for some such radical change as the Government now suggests in the incidence of local taxation.

As to the views of the Liberal leaders, they have left little room for doubt a3 to the way in which they regard this question. Last October Mr. Asquith declared that it was absolutely certain that the Liberal Government would have to devote serious* attention to tie problems of land values and local taxation. But the Prime Minister himself has been more outspoken on this subject than any of his colleagues. Referring" in 1902, at Keighley, to the immunities enjoyed by the landowner, Sir Henry CampbeU-Bannerman paid: "Why should the owner of land ga.in by the exertions and industry and enterprise of other people without any corresponding effort on his own part? Let his land be taxed and help in meeting the expenditure and assisting the prosperity of the nation by which he profits. This seems to mc in itself perfectly equitable. Nothing short of taxation of land values will suffice, to get at the root of this

great question." Again, in 1903, at Leeds, he repeated: "Let the value of land be assessed independently of the buildings upon it, and upon such valuation let contribution be made to those public services which create the value." At Bolton, in 1903, he declared: " Wβ say that the land, or rather the value that the community by its aggregation. by its industry, by its enterprise, by its public improvements, has given the land —must be made to bear its fair share of the burdens now thrown upon industry. With even a moderate -application of the principle of luaA Talua taxation $oma-

thing appreciable may foe done to lighten the burdens of house rent and, to diminish the evils of crowding." Again at Glasgow, in 1904, "C.8." said: " The rating of site values goes to the root of the most pressing and most neglected of social questions. What is claimed for it, and rightly, is that its effect will be to increase the supply of houses and improve their quality, and to reduce their rents, which in many cases are artificially high and a cause of widespread impoverishment." Many more extracts to the same effect could easily be gathered from the Liberal leader's speeches; but there is ample evidence here to show that in the opinion of the accredited spokesman of the Liberal party the special and separate taxation of site values constitutes an important and desirable social and financial reform. And this change when it is effected will merely 'bring' British law into line with New Zealand legislation on this subject; for, as is well known, the land tax here falls upon the landowner and cannot devolve.upon the lessee.