GOVERNMENT SAID TO ENDANGER OWN ASSET

Press, Volume XCVIII, Issue 28976, 18 August 1959, Page 20

GOVERNMENT SAID TO ENDANGER OWN ASSET

The condition of the Government’s own asset in grazing leasehold land is endangered by high taxation and death duties, according to Mr Duncan Ensor in his report as chairman to the high country section of Mid-Can-terbury Federated Farmers. In addition to adverse trading and market conditions in the last year farmers had had “iniquitous and unnecessary taxation burdens” thrust upon them, he said. “With death duties as at present there is absolutely no incentive to increase production where such an increase is tied to an increase in the capital value of a property, which is bound to be the case in the high country, where the main asset is livestock. This stock is usually, and of necessity, at a low book value with the result that at the time of death there is a heavy assessment of added income tax besides estate duties. Improvements “Capital improvements such as fencing, building, and top-dress-ing are all bound to decline, if not cease altogether, and the Government’s own asset in grazing leasehold land is endangered. During the post-war period quite spectacular work has been done on the improvement of the high country, and in fact our farm lands generally, and it is hard to understand the mentality responsible for the laying down of policy that is blatantly destructive to New Zealand’s greatest asset. The man on the land who goes on putting his utmost effort and capital into his place does so because that is his character rather than to advance the interests of himself and his family. “Most of you will have received recently a circular letter

from the chief pastoral lands officer of the Lands and Survey Department emphasising that there are definite stock limitations written into pastoral leases. During a period when surplus stock is difficult to quit at a reasonable price there is undoubtedly a great temptation to retain on the property sheep that are normally sold in the autumn, but to lose the goodwill of the department is too high a price to pay if holding stock means exceeding the stock limitation. It is more important than ever that the existing happy relationship between the runholders and the Lands Department should be preserved while we are experiencing such difficult times.

“Really the only bright spot during this dull year has been the effect of the operation of the floor price by the Wool Commission. What can now be described as a nasty recession in fine wool could well have been a disastrous slump but for the stabilising effect of the commission's policy. We can have some sort of satisfaction from the thought that it was through the support of Federated Farmers that the Wool Commission came into being. . .