LAND TAXATION REPEAL.

Auckland Star, Volume LXII, Issue 264, 7 November 1931, Page 16

LAND TAXATION REPEAL.

* Probably the most momentous legisla- ' tion 011 this question for many decades 1 back has been passed this session, with little comment.. I maintain it will have far-reaching retrograde effects. In 1844 the British Government set up a scienti--1 fic commission of experts to deal with 1 this question. They found, after a most searching commission of inquiry, that it 1 was absolutely necessary for the future advancement, of New Zealand that a graduated land tax should be imposed, or else land could be bought as it was by the New Zealand Land. Company for a song and held by people for speculative profit, and would be enhanced in value by the flow of immigration and the expenditure of money by the active farmer's. The people would pay for the building of ij'oads, railways, bridges, etc., while these big land owners would reap the harvest of other people's enterprise. The then Governor, Captain Fitzroy, by Ordinance, in pursuance of the Imperial Government's instructions, imposed this tax; Ir.t the big owners refused to pay, and as he had no means of punishment, or inflicting the same, these people escaped. This land tax war went on continuously till 1878. This was the main theme of ; political party cleavage till then. As only land owners had votes the people could , not oppose. In 1878 Sir Geo. Grey brought in his Land Tax Bill, imposing a tax on ;tlie unimproved value. The big land owners within a year bought over four of the Premier's party, ousting.him. The big land owners promptly repealed this Act and brought in. an Act imposing a tax only on lalid improvements. New Zealand' had made little headway till this time. The real pioneers, with small holdings, ..were struggling with a hopeless -.position, in the b.ack blocks, without roads, 'or lines o£/cbriiinuni"ca:ti6n. •; The. property tax completely paralysed the pioneers, reflected in the deepening de : pression of the ten years following, known: in our political history as the ter.rible 'eighties. The rcintroduction of the graduated, land tax in 1891 promptly reflected itself in stabilising land values. Most people 1 -do not realise that the proper use' of the graduated laud tax land gambling, keeps land at its usable" value and prevents ."big land holders leaving land idle to catch the future increased value through no effort of their own or expense on their part. Graduated land tax in relation to the economic' structure is like the governor on an, engine or the brake on a motor ear. Fail to use it, and you have land vajues' running riot. This is exactly what has happened in this- Dominion these last two decades. The best friend the farmer ever had was the graduated land tax. His inflated values, fictitious mortgages, exorbitant local body rates to-day, are the fruits of its improper usage. I tremble to think of the future and the farmer's lot. He is only creating another future 100 million pounds' worth of fictitious mortgages, and he is going to be the donkey that carries the interest burden. New Zealand's progress depends entirely on the proper handling of the land problems and should be studied. closely by everyone from the. point of national well-being outside vested interests or political partisanship. A. HALL SKELTON. '