The Times. Published on Tuesday and Friday Afternoons. FRIDAY, DECEMBER 9, 1921. LAND AND LAND VALUES.

Franklin Times, Volume 9, Issue 691, 9 December 1921, Page 4

The Times. Published on Tuesday and Friday Afternoons.

FRIDAY, DECEMBER 9, 1921. LAND AND LAND VALUES.

Although the Government claims to have reduced the basis of land tax it is worthy of note that the State revenue from this source has been more than doubled during the war. In the peidodl to 31sjt March, 1914, the year before the war, the amount of land tax collected in New Zealand was £767,451. Last year the amount was no less a sum than £1,688,978 • an increase of £921,527. The Prime Minister has recently stated that it will not be less this year, and it is reasonable to assume therefore that a further increase in the taxation is artticipated. How is it, then, that although the Government presumes to have lowered the basis o,f the tax, and has further considered a rebate of ten per cent, on the assessments, thalt the revenue i returned by the taxpayer is increasing in such alarming proportions ? ..'Land values are the key lto the position. While it is reducing the baJSis of the levy on the one hand the Government is increasing the land valuation on the other ; and, in consequence of an antiquated valuation system, the incidence of'the taxation is passed on in unequal pioI portions. For instance, under its ouc!of dajte system, the taxpayer on one side of a road may be assessed on 1 peak values, whilst lus neigbour enjoys the concession of a five-year-old valuation. There are many such cases around us. It is manifestly unfair that 'in one county peak values may obtain, while in the adjoining county the values were assessed before land speculation ha 1 forced *he figures to unreasonable limits. But, that is not the worst feature. The Government has participa t'd in a

“We nothing extenuate, nor aught, set down in malice.”

be,cm theory that the value of hum

was not regulated from the point of view of production. It is not'un common to hear of properties changing, hand at prices much below the inflated valuation which the Government valuers have put on them ; the Government valuation has ceased to be regarded as a reliable indication of the land’s worth. Gradually, as we approach normality again the lesson is being taught of the mistaken conception of speculative estimates forming the basis of land values, and we are returning to the prinple thatf production must be the only dominant consideration. But the Government assessements are less easily adjusted, and for all we Know the peak of values so far as taxation is concerned will stand for live or 8 years until re-valuation is sanctioned. If that is so, land settlement will be retarded and the producers will isuffer a great injustice. Already men are giving up fanning in despair of ever being able to meet the mortgage interest charges and the taxation demands, which arc based, not upon producerg wort . but upon inflated speculative figuies which obtains in a bocm period,. It may be that the excessive t. ce pa,id for the auiuo' on of properties will tmrush just'lioble group-Is ior re-ccnsidera-ton thm in some cases, is already being done, and mortgage in* ; r s. : ; are being adjusted accoi dingly; but the tax gatherer shows no such con's deration. J'he State evidently expects that the bargain shall Ire adhered to ; ills valuation is absolute, and although politicians may console the unfortunate farmer with the theory 'that the tax basis has been reduced it yet remains that the actual payment; because of the abnormal values acre for acre, is considerably in excorss of what it should normally be, Perhaps some farmers are becoming discouraged too soon. Discouragement seems to have been created by the uncertain prices for products abirtoad, but that, as yet, is hardly a contingency which should destroy the energy of thope who have entered upon the undertaking. Any enterprise connected with the land must take into account the variance of seasons and the uncertainty of the market. The gains in good years may more than counter-balance the losses in the lean ones ; the ayerage cannot be judged correctly on a twelve months’ experience. Yet, at the same |time, while not suggesting any premature protest for concessions the need for which may not be absolutely established, it seems beyond doubt that something more elastic in the valuation system is needed! Because this dr that county was valued during the boom period is it just or proper that it should, bear the brunt of taxation ? And is it fitting, in any case, that the Government should participate in fictitious vaues which Cannot be sustained from the point of view of production ? The farmer on highpriced land has enough difficulties to meet without being harassed by the national tax gatherer. One thing is certain, if the settler cannot make good the hard, times which no one wants *to anticipate • will assuredly be in store for everybcjdy. A return do noimal land values at the earliest possible moment is one of the surest means of warding off threatened dangers, and the whole situation demands ft he earnest consideration of the Government.