LAND TAXATION.

Manawatu Standard, Volume XLI, Issue 9856, 25 July 1914, Page 7

LAND TAXATION.

GRADUATED TAX AND CLOSER SETTLEMENT.

QUESTIONS ABOUT THE MORTGAGE .. TAX. The House went into Committee on the Land and Income Tax Bill yesterday afternoon, and an interesting discussion ensued. In reply to Mr Myers, Mr Massey said he would lay on the table a return showing the result* of the subdivision, which showed most satisfactory results, and would surprise most people. It showed that during the last two and a-half years 1,943,763 acres had been subdivided, which means settlement. Mr Witty contended that the return showed little else than that the land had changed hands. Mr Forbes said what the House wanted to know was what amount of subdivision had taken place under Government legislation, and how many new settlers were there. This view was endorsed by Mr Wilford. Mr Pearce stated that some farms of 100 acres in Taranaki were paying graduated tax, which was most unfair.

Mr Ell contended, in reply to Mr Pearce, that a man having use of £SOOO worth of land was infinitely better off even if he paid graduated tax than thousands of workers who paid £7 or £8 in rates per year. Discussion then centred round the question of family subdivision, the Premier contending that this form of subdivision did not evade the graduated tax. Mr McCallum asked if the Minister considered the time had not arrived when an increase in the graduated tax should be made. Hon. James Allen admitted that the valuations were not made all over the Dominion at one time, and it was impossible to do so. The task was too big. No amendment could be made in the mortgage tax this year as the problem was a complex one, out he hoped to do something to remove apparent injustice* before he left office. Mr Atmore dwelt upon the necessity for more closer settlement in Hawke's Bay. contrasting it unfavourably with the condition of affairs in Nelson. Sir Joseph Ward renewed his enquiry as to the effect of the "stepping" system of assessing the land tax. Would the Minister tell him what was the difference in the amount paid under the new system as against the old by a man who owned land valued at £6500? Hon. James Allen said a table had been prepared whWi showed anyone at a glance what the tax was. He had no table for the old system, but. he could say that the effect of last year's amendment was slightly to decrease the tax on valuations from £SOOO to £15,000. Sir Joseph Ward asked the Minister whether he was prepared' to iepeal the mortgage tax. It had been a plank in the Reform platform and he wanted »o know when the repeal was to take place. Hon. Allen repeated that it was impossible to remove the tax this session. Mr Forbes said he could omember the time when the Minister roasted Sir Joseph Ward like a chop on a gridiron over this mortgage tax, and now the Minister was the chop and evidently did not like the roasting process. Mr Bell argued that the figures proved a reduction in the amount < f taxation under the new system. Clause 1 passed at 9 o'clock. On Clause 2 Sir Joseph Ward rtmwed the discussion on the mortgage tux He said the Minister who formerly demanded its repeal ought' to get up and frankly say why he does not repeal it. The Bill passed without amendment. FARMERS' WANTS.

MR MASSEY ON THE GRADUATED TAX. OTHER MATTERS. WELLINGTON. July 24. < A large deputation from the New Zealand Farmers' Union waited on the Prime Minister to-day to lay before him various remits that had been carried in the Conference. Mr G. W. Leadly acted as spokesman -and explained that in regard to land Valuation the feeling of the Conference was that tlie unimproved value was unfairly forced up. It was thought it should be more of a fixed quantity, and that more cognisance should be taken of invisible improvements in the way of clearing of land and preparing it for cultivaton. As to native lands, difficulty was often experienced in getting any rates from them, and European holders of adjoining blocks suffered in consequence. Mr Massey, in reply, said that the native lands rating difficulty had been dealt with to a certain extent last year, and local bodies had been placed in an improved position. Where it was not possible to collect rates for two or three yeais it was provided that they might become a hen on the land.

The Prime Minister agreed that the graduated tax was, on account of the increase in land values, beginning to press somewhat heavily on smaller farmers. It commenced, at £SOOO, and that meant 100 acres at £SO an acre. That price was not unknown in some dairying districts, in fact it was quite common in the Taranaki, Otago. and Auckland districts. Thev had to bo very careful how they dealt with the graduated tax. He was glad to be able to say that the increase in the graduated tax provided for f? tne . Act of two years ago was having the effect intended by Parliament. He had a return showing that there had been a tremendous increase in the subdivision of larger estates. This return would bo rather a surprise to Parliament, for it showed clearly that subdivision was going on at the rate of nearly a million acres a vear. He did not think there would be «ny amendment of the graduated tax durng the present session, but when the mater was brought forward he Would consider he case of the struggling settler. . With regard to the Main Trunk railway mes Bmcf th outlookfforr r « d ay * m I uce h&d improved come £*L +h . c - GWmnent had come to the conclusion that a strone forwfth tK e^ ent was neceMa 'y. n<£ only mf of ro^: ldm s £")!*•*• but the mak* Dressed w& lu d the G ? was impressed with the necessity for completing at thTVT advoCa^ d by the Conference XL ft fk h T 8 P ? 8lble date - These were the &V 8l ? nd - Main Trunk line *«d the hast Coast; line in the. North Island. was proposed to set apart for these two.' ir ! ul he P resent Be9sion ' but- they! would be both provided for. The trouble! aoout the southern lme was that it had to I go through difficult country, and the surveyors had not yet been able to fix on the; best route. There might be some delay in i connection with the South Island Main Irunk, but the Government realised the necessity of completing it so as to give access from Picton to the Bluff. Mr Massey thought that when Parliament had appropriated the sums the Government was asking for in connection with education, it would be found that the dis-' abilities suffered by backblocks settlers I would disappear. The new Manager of Railways had been' going into the whole subject of rating, and j his report would be laid before Parliament within a few weeks. He (Mr Massey) be-1 heved it dealt with the subject of differen-1 tial rating.* I Personally he was in favour of the view the Union had put forward with regard to immigration. The Union understood the situation. The Government had been assisting two classes of people—farm labourers and domestic servants. Lately there had been a certain amount qf adverse criticism on account of there being a littlo bit of unemployment, but this was the slack season. He did not think there was much unemployment in the country districts. They had to be careful about bringing people to the country who would themselves become unemployed or cause the unemployment of others, but they recognised that the proper policy was to fill up the waste places with their own 'people,; and that was the direction in which the' Government were going. They .were care-' ful in the selection of the emigrants, and in spite of all the adverse criticism in- j dulged in during the last few months, the' boys who had been brought to New Zca-i land were getting on satisfactorily, and the experiment was likely to turn out a j complete success. .