TAXATION AND LAND DEVELOPMENT

Press, Volume C, Issue 29500, 29 April 1961, Page 7

TAXATION AND LAND DEVELOPMENT

•‘I sometimes wonder what happens when the kingpin dies in a scheme - of farm development. It often seems that the more gorse I leave on the property the more chance my sons have of inheriting it,” said Mr W. F. Ashe, to a field day of farmers this week at Oktucu on the large block of native land he is breaking in and developing. Mr Ashe said that the £3OO allowed as tax exemption for development was hopelessly inadequate. Taking the gorse as an example, he said that money spent in spraying became a direct charge and allowable for taxation but up until now it had been imperative to concentrate on stock numbers to get the property to the 1000 ewes regarded as an economic unit, 'mis sort of development was just as important. Heavy taxation on properties under development could only result eventually in fanning becoming a monopoly industry with large land companies or of farmers declining to a race of peasants. Paying a tribute to Mr R,

Milne, of the Department of Agriculture at Rangiora. Mr Ashe said that “thanks to Bob, we haven’t misspent a £5 note since we. began." To a questioner who asked what were the prospects of a young farmer starting off with limited capital to break in such land, Mr Ashe said that: “If a young man is prepared to work hard and forego the so-called necessities of civilisation and take advantage of every form of assistance, with the aid of a wife who is prepared to make similar sacrifices, he will come out on top, but it will be a long hard job.” Time payment—“make the machines pay for themselves as the work is done,” and overdraft accommodation had to be taken full advantage of. "In this sort of work you have got to have all the equipment you need so that you don’t have to call in contractors. Every profit, however small, has got to be your profit.” Mr Ashe said. “On this marginal land the scientists now know a lot more than they did before, and there is not the degree of uncertainty which faced those who attempted to farm this type of land many years ago and failed. "Stock and station firms and the banks are most cooperative provided you are prepared to knuckle down and work. All the world loves a trier,” he said.