THE UNIMPROVED VALUE.

Waipa Post, Volume III, Issue 130, 23 July 1912, Page 4

THE UNIMPROVED VALUE.

HOW IT IS MADE. In a letter addressed from Beckenham, Christchurch, to the Dominion, Mr David Jones writes: — “ We hear to-day on every hand that the unimproved value of land has increased enormously. The men who are preaching these things from the public platform, and through the press, are to a great extent ignorant of the way the unimproved value is arrived at, or, what we do not care to suggest, are stating what they know to be untrue.

“ I will give here an illustration of the value of a farm of about 2500 acres, that was purchased less than twelve years ago, within seven miles of a railway; no public money has been spent to add value to it. An instance of the individual energy and ability of one farmer in comparison with the previous owner; same land, but different men in occupation.

When purchased, the property was carrying 1700 sheep, and 9200 pounds of wool was shornless than 5% pounds per sheep. The lambing was 80 per cent, and all lambs were sold as stores. The unimproved value of the place was £4 per acre. It employed one man and One boy. “ The new owner, by skilful cultivation, strenuous toil, and heavy outlay has made it a fine agricultural and grazing property, carrying now 4000 sheep, instead of 1700, clipping eight pounds instead of five and a half pounds of wool. Well over 3000 of these sheep are ewes, and the average percentage of lambs is 100. The number fattened and shipped is 97 per cent. In addition to this, an average of over 10,000 bushels of wheat are grown, the sheep and wheat and other goods materially assisting the railway revenue. The wages paid to-day are six times as great as previously, besides the large amount of labour expended in buildings, implements, machinery, etc. Over £6OOO has been spent in permanent improvements and which, in addition to the improvements on the property previously, brought the improvements to over £9OOO, and the Government valuation for improvements is a little more than one-third of the total cost. The State thus robs the farmer of over £SOOO, and it goes to swell the unimproved value.

The capital value of the farm has rapidly increased, and to-day the taxation is very heavy, the difference between the unimproved value to-day and twelve years ago is enormous, but who created it ? The State has given no more facilities, has not spent any public money to benefit it, the people who maintain our market are overseers. The State has in fact materially benefitted through the increased production, and now while professing to tax on the unimproved value, in this instance confiscates for taxation purposes over £SOOO of permanent improvements as well as the whole of the improved quality of the stock and the increased yield of wool and mutton, confiscates the whole of the unexhausted artificial manures in the soil; confiscates the result of the brain and energy of the farmer in bringing a "tussock” farm to a highly improved agricultural farm, and calls the difference between the capital value and the few ‘ bob ’ they allow for improvements the unimproved value and irresponsible ignorant people add up the total, and say the community have made the difference —it’s unearned increment.”