The Western Star. (PUBLISHED BI-WEEKLY.) WEDNESDAY, SEPTEMBER 26, 1883.

Western Star, Issue 778, 26 September 1883, Page 2

The Western Star. (PUBLISHED 81-WEEKLY.) WEDNESDAY, SEPTEMBER 26, 1883.

On the last day but one of the session just over, a quiet-looking Bill was placed on the table of both Houses of Parliament, entitled “The Eailway Improved Lands Act, 1883.” It will be discussed next year, and when it is, will create no little stir amontr the landowners, for it is nothing more or less than an attempt, for the first time, to give effect to the very just popular demand for the taxation of “ the unearned increment” in the price of land affected by the improvements mado at the cost of the State. The Bill proposes henceforth to value the lands alongside of, and near the terminus of every Government railway, before sueh mlwey is begun, and then to revalue t&em again after the line is constructed, and impose a tax towards the construction of the line to the extent of one-half of the increase of value. The lands thus taxed will be such as lie within five miles on either side of the line, or within a radius of five miles from the terminus of the line, or of any section of such railway, with the exception of such lands as are situated within boroughs, or within town districts, or are occupied by churches, schools, cemeteries, or for other public purposes. Ihere has been hitherto, and is, we believe, still a difference of opinion with regard to this “ unearned increment” in the value of land, the large landowners of course maintaining, as they did in the Legislative Council lately in the discussion on the Lands Amendment Bill, that it all belongs to them, whilst the best authorities on political economy, such as Mill, Spencer, Cairns, and more recently Wallace and George, contend that it belongs to the State. In the Ministerial Bill a compromise is proposed, and it is designed that the Government shall tax it to half its amount, the landowner retaining the other half, instead of the whole, as heretofore. A great injustice would, we believe, he remedied by the above Bill. Cases have often occurred before now where the landowners have bad their property increased in value five or seven times over, after railways have been made by the Government through their property, and yet have paid next to nothing in taxation for the benefit received. A case which would have been one of this kind, a few months hence, if not provided for, was, we believe, one of the causes which prompted the drafting of the Bill we have mentioned. The main trunk railway line through the Middle Island northwards has been already formed from Riverton to Hurunui, and within a year will be continued to the Red Post. Still further north, towards Cook’s Strait, it will pass through the large properties of Messrs Robinson, Clifford, and two or three other landholders for many miles, they and their employes being nearly the only people living in this almost uninhabited district. It is almost needless to point out how largely these men of property will be benefited by the passing of the maiu line of Government railway right through their laud. Of [course fight for the retention of the

law as it stands, and escape all taxation if they can, especially as they are reputed to be almost as mean as they are wealthy. We have reason, however, to hope and believe that the Bill will be carried, and the revenue relieved from what would be otherwise a burden, of which only part justly belongs to it. So far from the landowners being unduly taxed by the Bill, they are really let off easily. As a matter of right, “the unearned increment” does not at all belong to them. They are to get half still if the Bill is carried. Then besides that, there is no provision in the Bill for even taxing to the extent of this half fully because, the value of the land is reckoned at starting only at the price which would be given now, though that price has already been greatly increased by anticipation ot the railway to be formed. And the real increment to be taxed is still further lessened by the enhanced valuation being only made at the time when the railway is open for traffic, and not from time to time afterwards, as property under such circumstances becomes more and more valuable. Still the Bill establishes a very just and prudent principle with regard to defraying the cost of railways. It is only a wonder that some such proposal was not made long ago. Had it been, the Colony would have benefited im- : mensely by it. The landowners will be foolish if they attempt to oppose it when the Bill comes before Parliament. If they decline the excellent offer made them, they may perhaps find that the next Bill dealing with the subject will tax them to the extent, not of half,, but of the whole of the rise in their property.