THE UNIMPROVED VALUE

Dominion, Volume 5, Issue 1487, 9 July 1912, Page 8

THE UNIMPROVED VALUE

HOW IT IS .MADE. A STMICING ILLUSTRATION'. In a letter addrc&cd from Beckcnhani, Christchurch, -Mr. David Jones writes:— "We hear to-day on every hniid that tho unimproved value of luud has increased enormously. Tho men who are 'preaching llie.-e -things from- (he public platform, and through the press, are lo a great extent ignorant''of the way tho unimproved value is arrived at, or, what we do not care to suggest, are what they know to be untrue. "I will give- hero an illustration of the value of ji farm of about iiOD acres, that was purchased loss than 12 years ago, within seven miles of a railway; no public money lias 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 shorn —less than 5J pounds per sheep. Tho lambing wa.s 80 per cent., and all lambs were sold as stores. The unimproved value of the place was ,£■( per acre. It employed one man and one boy. "Tho 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 less than five and a half pounds of wool. Well over 3000 of these sheep are ewes, and the average pcrcentasfß of lambs is 100. The number fattended and shipped is 97 per cent. In addition to this, an overage 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 tlio large amount of labour expended in buildings, implements, machinery, etc. Over .£fiooo has been spent in permanent impiovemcnts, and which, in addition to the improvements on the property previously, brought the improvements to over /£!)000, and the Government valuation for improvements is n little more than onethird of rhe total cost. The- State thus robs.the farmer of over and it goes to swvll 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 crpate;! 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. Tho State has in fact materially benefited through the ,irercased production, and now while profMsincr.to tax on the unimproved valup, in this instance confiscates , fer taxation purposes over ,£SOOO of permanent improvements a* well as the whole of tie improved finality of the stock and tho increased yield of wool and .mutton, confiscates the whole of the unexhausted artificial in the =nil; confiscates the result of the brain and energy Of tho farmer in bringing a 'tussock' farm to a highly improved agricultural farm, and colls the difference between the capital value and tho few 'bob' they allow for improvements the unimproved value, and irresponsible, ignorant people add up the total, and say the community have mar'o the difference—its .unearned increment."