Relief Claims On State By Flooded Farmers

Chronicle (Levin), 9 March 1949, Page 5

Relief Claims On State By Flooded Farmers

GISBORNE, March 8. The Minister of Finance, Mr. Nash, in an ihterview this afternoon aftfer conferring with the Gisborne flood relief agencies, said he found practically all ciaims for State aid lodged had been satisfied and only h small number ot special cases were still under action. Mr. Nash said he had agreed tb consider, in consultation with Treasufy officers,t certain recommendations that emerged from his discussions. One was a recommendatio'n that outlays made by farmers in restoring fences * and other assets damaged by flood^ shouid be treated rfs maintenance. The argument was advanced that whilb the fences as they stood prior to the flood, were a capital investment, their rfeplacement after demolitibn by the flood was in the nature of repairs. Mr. Nash was asked by Federated Farmers to treat such expenditure as maintenance deduCtible from annual incrime for-. taxation purposes. f Mr. Nash said the capital outlay on fences was nbrmally treated as an investment tb earn inebme and jibt rbeognised as deductible from income for taxation' purposes. He thought thefe might be so'mething in the proposition. Anothei® matter on which he proposed tb spend thought, was an applieation of the Coolc County Counbil for an extenSion of the subsidy system to mefet the needs bf baek cbuntry roads. •