VALUES OF LAND.

Otago Witness, Issue 3889, 25 September 1928, Page 23

VALUES OF LAND.

The subject of land values w r as again introduced at the meeting of the Farmers’ Union in Oamaru on Friday. Mr D. J. Ross quoted from the remarks of Professor Belshaw at Auckland, and also referred to certain newspaper comments. The suggestion had been made by one member of the executive that the only fair taxation was the income tax. Mr Ross said that one man might make a success of a farm, and another, on land of equal quality, would be a failure. He contended that the income tax in such circqjfetances would be unfair. He pointea out that in the last analysis all taxation came out of income. What was Wanted was a stabilisation of land values, without respect to the price paid for land. In regard.to the income tax, if there was a bad season in respect to droughts, etc., the Government’s finance would be crippled. The land tax gave the Government an assured income, which was essential. Mt J. B. Chapman said that his 10 years’ experience in the North Island was that the variation in land values “ was regulated, by the number of land agents. The conditions of land in the North Island and South Island varied considerably. In the North Island they had to manure their land heavily. The land agents had brought about the inflation of land. Mr Chapman did not think cheap money was desirable. This merely resulted in further inflation. Many South Island farmers had been ruined through going to the north. If a remedy for high-prices was required he would advise farmers to “sit tight and work hard.” _Mr Ross said he had himself suggested a remedy, which was that Government valuation should be done away with, and each owner be permitted to value his own land without improvements.

Mr Ruddenklau stated that the man who held his land would value it at one price, and the man who wished to sell would value it another. Mr Ross contended that there would be few people who would find purchasers of land at more than the market value. What he desired, was to do away with the txaffiekmg in land. This could be done by every person valuing his own land according to what it was producing, and by preventing him by legislation from selling his land at a price above his own valuation. By this means the prosperity of the country would be restored. The secretary: As soon as it is restored, the price of land will go up. Mr R. Dick congratulated Mr Ross upon the careful manner in which he had dealt with the subject. At the same time, he thought the scheme was revolutionary. The matter was one which should have been taken up by the Legislature, if it was worth while. The Government should give the lead. Mr Dick could see difficulties in the way, so far as both the Government and speculators were concerned. He considered the proposal Utopian. Mr E. S. Brewster said if the price of land were brought down, the Government would collect the same amount of land tax as at present. Mr Ross agreed that this was so. His proposal was not with the object of affecting Government finances, but for the purpose of stabilising values. Mr Chapman said if each man valued his own land; moneylenders would be reluctant to make advances to farmers. Mr Ross replied that farmers were not likely to place the value of their land above those of the Government value. He believed if the land were stabilised the security would be improved. The secretary said if no man was allowed to value his land above Government values, it would be a good thing, and would facilitate advances. Mr Ross: That is precisely what I am aiming at. Mr Tailentire could not see how they could do without arbitration concerning the value of land. He . was of opinion that land should be valued according to what it produced with fair working. Mr Tailentire mentioned the difference in land values and taxation between North Otago and the Auckland province. Mr Ross asked Mr Tailentire if he had any idea what to do to stabilise land. Mr Tailentire contended that they should depend upon the work of fair valuations. He did not think the Government would agree to each man valuing his own land. Mr Ross said the Government allowed each man to make a return of his own income. f Mr W. Macdonald suggested that in order to stabilise, values no transfer should be permitted at a value higher than that placed upon it by the Government. Mr Ross said he was quite in sympathy with this proposal, provided the valuation was on the unimproved values. Mr Brewster stated that if a man was prohibited from gelling his land at public auction to the highest bidder, it would be disastrous. The value of land fluctuated according to the price of produce. Mr Ross replied that the difficulties in the Dominion to-day were due to the inflation of land in boom times. Mr Ruddenklau: You can’t do -awav with slumps, and you can’t do away with booms. Mr Ross complained that no effort was being made to solve the land problem. He was not sanguine that his scheme could be__brought into operation in 10 /ears, or even in 20 years. No reform could be effected in a day. After further discussion it was decided that a remit from the Te Horo branch dealing with the subject be allowed to li l on the table. It was further agreed, on the motion of Mr Dick—“ That this meeting agrees with the principle of stabilisation of land values.” Mr W. Forrester observed that it seemed impossible to him to stabilise the values of land unless they stabilised the values of produce. Mr Ross replied that it was impossible to stabilise the value of produce. l\lr Chapman thought Mr Forrester’s remarks were very much to the point. Mr Ruddenklau considered Mr Ross was entitled to every credit for bringing the matter forward. The subject was one that afforded good room for debate. The discussion was then allowed to drop.