TAXATION OF THE FARME

Taranaki Daily News, 11 June 1930, Page 13

TAXATION OF THE FARME

POSITION IN NEW ZEALAND.

BETTER TREATED ELSEWHERE.

Mr. C. A. Wilkinson, M.P. for the Egmont electorate, gave a pre-sessional address at Kaponga last night,. Mr. A. R. Bates, chairman of the Town Board, presided, and there was an attendance of about 50. At the conclusion of the meeting a vote of thanks and confidence was carried by acclamation upon the motion of Mr. W. Marr, seconded by Mr. A. Melville. Mr. Wilkinson covered a wide field of subjects. Referring to land taxation ho said he had opposed the policy of the Government on principle. After recalling various changes' made in the proposals owing to opposition in the House in which he was associated, Mr. Wilkinson said he had always stood, and still stood, for an income tax on well-to-do landowners, and a straightout income tax would have brought in the £250,000 that was collected from wealthy landowners, or more. The present law provides both for income tax and land tax, whichever might be the greater. He pointed out that the super land tax must be paid (except for the hardship clause) whether there were a profit or loss, while the income tax was a charge on profits only. In view of the war debt of £70,000,000, and interest and war pensions amounting to over £5,000,000 per annum, well-to-do landowners should be compelled to pay their share. They used to do so, but the Reform Government remitted this taxation, thus committing a great political blunder.

Let them contrast the position of New Zealand farmers with that of the English farmers. In England no farmer paid a penny piece by way of rates on his farm, nor did he pay land tax. It was recognised that flat taxation on farm lands was unfair in principle. It was a tax on production. The rates on farm land in England were reduced come years back, and from April 1, 1929, no rates whatever had been or were to be levied. The English farmer only paid rates on his dwelling, just as a town man paid on hie dwelling. On his farm, his barns and sheds no tax whatever was paid. All land of i-acre and upwards used for poultry farming, cottage gardens, market gardens, nursery grounds, bee farms, or orchards were excluded from rates. Further, taxation on railways had been reduced by £4,000,000 or £5,000,000 per annum, conditional upon their carrying goods for farmers at low rates. That showed that the producing farmer was considered to be an essential factor in the well-being of the nation. The New Zealand fanner competed with others who paid no rates or land tax, who got cheap stock food, cheaper labour and cheaper living. In New Zealand the stand-by was apparently the climate. Farming was New Zealand’s greatest industry. In fact it was the greatest industry in the world. Nations competed, but if the farmers flourished all were prosperous. To-day the farmers were faced with a tremendous fall in values. Wool was down. Butter and cheese were down. Meat, flax and other items were low. Hence there was dear money, unemployment and high exchange. Australian conditions were largely responsible for the adverse exchange conditions. Never before had New Zealand paid about fl per cent, for drafts. Certainly the farmers were profiting in their drafts. Farming was the one undertaking that could help the Dominion’s monetary position abroad. No secondary industry could export goods to assist the financial position, and therefore every legitimate effort should be made to stimulate farm production in products that could be sold in the markets of the world. New Zealand's future prosperity lay in the cultivation of the soil, and its farmers could be assisted by a remission of taxation by an open door, or tax free stock foods. Danish competitors enjoyed all these advantages and had built up an enormous trade. To show how cheap food could be bought 1n England, Mr. Wilkinson said that maize could be purchased at undfcr 3s for sfllb. New Zealand, he said, could raise and »xport millions of pigs, great quantities of eggs, and poultry if conditions were altered. Employment would thus be stimulated.