INCONSISTENT VALUATIONS

Franklin Times, Volume 9, Issue 775, 13 October 1922, Page 6

INCONSISTENT VALUATIONS

PAPER BY MR 11. E. R. L. WILY. SOME INTERESTING FACTS. ACTION BY RATEPAYERS' ASSOCIATION. Some interesting facts were disclosed by Mr H. E. R. L. Wily, of Mauku. at the Ratepayers’ Association meeting held in the Carnival tea-rooms on Thursday evening, when Mr Wily read a paper dealing with the valuation question, which lias been a burning topic of late as far as Pukekohe is concerned. After a few prefatory remarks. Mr Wily said: — “For many years I have been much dissatisfied with the methods of the Valuation Department. If the system upon which it works can be dignified l)v the name of a system, it is a svslein with an absolutely rotten foundation. The one aim is to put tlie unimproved, or taxable value, at the highest point possible. With this end in view the value of improvements is inconsistently, and often most dishonest lv. understated. We have all seen that, here, where the amount allowed for clearing the forest, fencing, cultivating, grassing, and manuring, and the hundred other works that a highly improved farm implies are put at an average of £7 to £8 per acre. A case came before the Court where the total improvements on a farm were put down at £1235, although the buildings were insured for £2OOO. There are probably many cases in the Borough as bad, and I could take you inlo the country and show you worse ones. “I was dissatisfied before it reached an acute stage when several of the Pukekohe ratepayers conferred with me, and we compared .the unimproved values of the Borough with one another, and with the valuation of the County lands adjoining. The figures were certainly startling. The hard limes, the slump in most articles of farm produce, the almost impossibility of selling farm 'land all called for a considerable reduction in tlip unimproved, value. Instead of that, what did we find? An enormous increase, except in a few favoured cases —an increase absolutely unwarranted by any of the conditions. If the Valuation Department wished to put the farmers of Pukekohe out of existence altogether it could not have gone to work in a better fashion. Three of these unfortunate individuals showed me their land lax and rate demands. In one case they came to £3 1/10 per ,aere. in another to £3 2/5. The third was highest of all. but I do not remeber the exact figure. A Voice: £4 2/8 per acre in one ease. Mr Wily: I did not hear of that one. Continuing, AMr WUy said: “Now we all know farming successfully under conditions in which the value to tent is taken in taxation is impossible. Bad as this unconscionable boosting of the unimproved value was, it was in my opinion, a trifle compared with the discreditable lack of relative uniformity a comparison of the valuations showed with one another. In a number of eases the unimproved values were put at a comparatively fair figure. What is so astounding, and so discreditable to the Department is the fact that adjoining lands, with no greater public facilities, were put at three and even four limes the figure. lam not going inlo details. The Times lias published many of these discrepancies, and Air Wilkinson put, the whole list, and a very damning list it was, before the ValuerGeneral .

“To my mind Hie climax was reached at the sitting of the Assessment liient Court. The insolent and offensive way in which objectors were treated, the refusal of the Court to hear evidence which had never before been refused, and the very evident determination to penalise one objector because he had come out into the open to fight the cause of his neighbours as well as his own, caused me to' make the strongest possible representations to the Government. These representations resulted in the Valuer General coming to Pukekohe. They also brought forth those remarkable reports from Mr Goutts, the Auckland officer in charge of valuations, and Mr McCarthy, the valuer who did the work here, which I had the pleasure of reading to a Pukekohe audience some time ago. lam not going to characterise these reports in any way. It, will he sufficient if I say I do not think they would have .been made if the authors had thought they would come before the Pukekohe people.

“The deputation that met the Val-uer-General did not get very much out of him —except the stereotyped reply that the request for a valuation would be considered. It must be remembered that to give a re-valuation would be to admit that the officers of his department had blundered —by no means a pleasant thing for an administrative head to have to do. It is certain that Mr Wilkinson’s little list of the most glaring discrepancies, and the evidence of his own eyes on his his trip round must have been enough to convince him that a revaluation was an absolute necessity if justice is to be done. However, he has had quite time enough to most fully consider the matter, but we have not yet had any word of a re-valuation. It is your turn now to do some considering. If you arc prepared to say you are satisfied now to let bygones lie bygones I have no doubt Mr Flanagan will also be willing to let the matter drop. If you are not satisfied you had better reiterate your demand to-night in the plainest and most forcible manner, and be prepared to back it up in the only way that, unfortunately, appears to count in this country—united political action. lie-valuations have been made before, and can be made again no doubt. Let me tell you of one that was remade in this county some years ago.: A new valuation bad been made of the western half of Franklin County. The valuer had spent many weeks over it, had inspected the farms and interviewed the owners, coming, in very many cases to an agreement as to the valuation. Then the usual

valuation notices were sent, out. In a few weeks “amended'’ notices were issued, anulling the first, and raising (lie unimproved valuations by from '2b to si) per cent. At the Court I asked the valuer for an explanation and

lie said: ‘When i gol back to the office I was told my values were nol high enough, and I was told to rewrite them/ Could anything show more plainly what, a' damnable farce the Government valuation of farm lands is. •'1 think 1 have said enough about I lie Pukrkohe valuation. If it will not bore you 1 should like to say something upon the general questing. The deputation which met Mr Flanagan went into that phase pretty fully also. 1 am sorry no report of the proceedings appeared in the Times — I underlsand the /declrie power trouble was the cause. Mr Flanagan fold us that in ids opinion £BS as capital value was high enough to value land that would keep a cow. So you have only to count your cows and multiply them by 85 to know what your capital value ought to be. Bui as to the unimproved value he was of opinion that ought to he arrived at in a much more ingenious manner. The valuer is Id shut Ids eyes and imagine what the land would sell lor if ii had its present surroundings hut had nol had any work done on it. I am nol going to suggest that it was in lids manner that Lake McCarthy and large areas of unploughahle land were discovered in lids Borough, but I am going lo say that the mere ennunciation of such a doctrine shows that we are at the mercy of an eccentric doctrinaire. There is only one way by which the unimproved value of farm lands can be ascertained, and that is by carefully arriving at I tie capital or selling value, then valuing all the 'unexhausted improvements, and deducting them from the capital value/ What remains is the unimproved value. At one time the legislature was honest enough lo admit that. By the 1878, the taxable value was arrived first unimproved value lax, that of at in just that way. Now I would like to get lo the question of the Court. The land owners have no representative on it. Mr Flanagan thinks they ought nol to have. \ if they did the single-taxers would “nobble” him, and if the Labour Party saw the land-owners had a representative they would demand one also. The case against a representative of the land owners must he a had one indeed if no better arguments can he brought against it than that. The landowners most certainly ought ‘to have a representative, and he should he put on the same footing as the Department’s assessor, who is a permanent official. “I do not wish to close without drawing attention lo the directions things are trending. The unimproved values are being boosted up year by year, regardless of the conditions of the market for produce or the cost of production. Each valuation is another step up the ladder. In many cases Hie amount put on for unimproved value is greater than the land would sell for. If Labour gets into power it is pledged to confiscate the unimproved value of land. I would remind you that a . few days ago Mr Massey pointed out how significant it was that the two men who were busiest in trying to promote an alliance between Labour and the Liberal Parly were two pronounced singletaxers. Let us suppose they are successful—where would you be then? I will give you a concrete example of the result. The Graham family have a block of 20 acres half a mile from here. Their share of it will be £2lO. The State will take from them £5 400. Political action is the only thing that will put matters rigid. If we arc wise we will deal with it at the coming election. What we should insis! on—offer, of course, a revaluation for Pukekohe, ought to be: (1) A fair and honest system of valuation, with the imaginative system thrown over-board for ever; (2) a judicial Court, with a president familiar with farming conditions; (3) a land-owners’ representative on the Court; (4) that the assessors be put on an equal footing.” Mr Wily resumed his seat amid applause. Several questions were then asked. In reply to Mr Hogan, Mr Wily said he did not hear Valuer McCarthy say in Court that he valued; all grazing land at £BS pe<- acre. He knew where some grazing land was valued as high as £2OO per acre. (Touching on the manner in which the Assessment Court was set up, Mr Wily said it was a farce in this way : Two Government officials were against one temporary appointed for the day. The two permanent officers sat at Cotfrts throughout the Province and were better acquainted with the values of the land than the one who was representing a local body. The latter, however, was able to do a little. He did a little on the occasion of the sitting of the Coujrt in Pukekohe, inasmuch as he was influential in getting some of the valuations reduced;. He added; that of the cases ithat came before the Pukekohe Court Mr Wilkinson’s case was treated 'the worst, Objectors all round M>- Wilkinson had their values decreased from £2O to £25. wheras it was only after great that Mr Wilkinson’s was reduced £5 per acre.

Mr Wily contended and emphasised this point, that, for the very reason of having a permanent assessor on 'the othqr side, it was necessary for the ratepayers to have a permanent man also. The man who travelled around had the advantag-e over a man who , came in for one day. The lattatr merely represented the local bodies. :He did not know whether the Pukekohe Borough Council had taken any steps, assisting in having a re-valuation made. It was usually for the jlocal body to be against the landowenr and he cited the Birkenhead Council in this irespect The latter had asked' for Higher valuations to be made. It was a most extraordinary position and an improper one Ito give one party representation and refuse it to ithe other. As there were no further questions, MJf M. Cronin moved and Mr H. Dell seconded, and it was: carried unanimously. that this public meeting of ratepayers requests the ValuerGeneral to send an urgent reply to ithe deputation’s request. when he visited Pukekohe

It was pdinted out that the general elections was rapidly approaching, and if something was not done one way ttr another, those concerned would know how to act on ejection day.

Mr Dell stated that the Valuer. General had been taken around the shown the various farms, but so far they had no (reply whatsoever.

Mr Lawrie moved a heart}’ vote of thanks to Mr Wily for coming from Mauku to 'read a paper. He pointed out ithat the valuation question was affecting the whole of the Dominion at the present timei, and ratepayers were more or less up against it. Mr Wily, he added, had taker! consider-* * able interest in the master, and he assured all that Mr Wily was thoroughly conversant, with the valuation question. The speaker had, through being connected V vrj,lh another. local organisation, fully ’ discussed it with Wily. He heartily endorsed the sentiments voiced by Mr Wily, and concluded by staling that ic was absurd the way the Assessment Court was constituted. The motion was carried bv acclamation. Mr Wily, in reply thanked, them for the vote. He said the position was really serious and! if persisted in would, lead to revolt among farmers. What was wanted was an honest valuation. flic position was most improper The unimproved valuations of the Dominion had been practically doubled, [The head of the V Government was taking great credit ' l ' ’ to himself for reducing Hand tax. Nothing was said about the valuation of the country. The Government needed; money but it was far better ito raise it ‘honestly If a penny would not do make "it two., pence instead of continually increasing the land values. One of the worst features was the uneven valuations in many cases. Some were paying three or .four times as much as their neighbours. The position was dangerous and if by any chance the Labour Party goit inter power and brought in legislation on the lines of Single Tax the position would become so precarious that they would be ruined. ms Taking his own case, in 1916 his valualiion was £l9 per acre and irt 1921 it was increased to £36. Mr Wily concluded by stating that there was no possible excuse for a rise in (the land! tax, . Mr John Russell said he was pleased to see the Ratepayers’ Association was taking up the master witth so much interest. The position at present was that the land agents of Pukekohe were afraid to tell prospective buyers what the rates were. They had received a fair hearing from the Valuer-General when he was in Pukekohe. They had noft had a fair deai with the Assessement Coilrt, but they were assured qf a better deal in the future. Mr Wily had rendered invaluable assistance at the Assessment Court and he had taken the matter up with a view of infusing enthusiasm, so that the valuation question would be ut on a propdr basis.. Mr J. T. Stembridge then moved: “That representations be made to the Valuation Department urging an alteration of the constitution ofy/ the Assessment Coijrt by including / a ratepayers” repi-esentative,” Seconded by Mr (H. Dell and carried unanimously.