TIMBER TAXATION

Hokitika Guardian, 11 January 1927, Page 4

TIMBER TAXATION

POSITION OF COUNTIES.

PERMANENT BASIS REQUIRED. LOSS OF REVENUE THREATENED (From 'Waikato Times). The equity of taxation imposed by local authorities on standing timber in their districts has been contested by sawmillers for som years, and the position of Counties threatened with loss of revenue from that source was discussed by a meeting of the Rural Counties’ Association at Hamilton, when representatives of .the Hauraki Plains, Thames, Taumarunui, Wairnnrino, Ohura, Tauranga, Rotorua, and Waitomo County Councils, were present. Mr 0. A. Stanton (laumarunui) presided. The Chairman stated that the problem confronting counties in respect of standing timber within their boundaries was an important one. Briefly referring to the position which had arisen, he said that when the Land Act was amended, standing timber was treated as part of the land, and was liable for rates. This condition was thought to obtain until the decision of the Court of Appeal last year, which stated that the 191amendment removed timber trom rating. The original Act exempted plantations of native timber up to fid acres for preservation purposes, the clear intention of Parliament must bare been apparent when the omission of the stipulated restricting the area to 25 acres was unnoticed for 14 years by those directly concerned. When the Court of Appeal’s decision was announced counties made rep resett ta tions to the Minister ol Lands on the matter. 1L was considered by Cabinet, and spoken ol as being fraught with great difficulties. A piomise was made that the revenue of counties would not suffer, and the raving of timber was placed on the same basis as nreviously. but lor one year only. To make that permanent was the ohiect of the Counties. An effort was being made by the sawmillers to protect the industry from its legitimate share of local taxation. The equity of the position should he examined.' with a view to reinstating timber taxation. The sawmillers’ association had given many reasons why their timber should not be rateable. The native timber was in the same position as the land. It was a provision of nature, and had not been created by cultivation to produce the asset. The rich, swampy lands of the farmer were similar, and timber laud was much more valuable than the fen country which was taxed. The local bodies were called upon to provide services for the sawmilling industry Roads had to he maintained and there was a large demand on Lite hospital facilities provided through the levic: made by local bodies. When the saw millers were faced with competition they sought tariff protection, hut whet the farmer was placed in the sami position, he was told to adopt bettei methods. It was a logical argumeiU to urge other industries to do the same It had been suggested that tin counties -set up organisations to male united efforts to prevent the loss of ; valuable source of revenue. The.bash principles could not he disregarded The County ratepayers were carrying ; heavy burden, and if the revenue Iron the timber was lost, the tanners wouh have to make good the deficiency. The Rotorua County representativ suggested that some measure of pro lection should be given the sawmillers A conference should he held with th sawmillers to discuss the matter, am avoid dissension. There, wore two side to the question, and the sawmiller were entitled to receive a profit when they worked timber difficult of access Another country representative i\a inclined to take up the attitude of th sawmillers, who maintained that i competition was reduced, they wouh lie in a positron to pay the timbe rates. There was no sale practical!; for low-grade New Zealand timber The building by-laws would have to 1) amended, allowing the interior timbe 'to he used in the houses. The saw millers should look to the Covcrnmen for their relief.

It was pointed out that the sawmillers laid their own tramways and 'did mu use the road much for their work.

The Chairman said the counties were called upon to provide essential services for the sawmilliiig industry, and had to lie reimbursed. The millers were endeavouring to exempt themselves from every form of taxation. There were large areas ol timber, and holdings were being increased by miners at every <ipj%rtunity.

The question was raised whether the counties were receiving all that was due to them as one-fifth of the royalty on Crown timber. It was stated that local authorities should be allowed compensation for large areas of land devoted to State afforestation. The Chairman stated that the sawmillers had apparently given no valid reasons why the timber industry should escape taxation and the burden he carried by others.

The Taumnnumi County had suggested that the counties form their own organisation. Counties in adjoining districts should group themselves and keep in touch with other groups in order to make a concerted appeal to the Government to reinstate timber taxation.

The Chairman moved a resolution:— “ That this meeting of the Rural Counties’ Association support the action taken by the counties .concerned to permanently sustain timber mi the valution roll for rating purposes, and that their ease lie circularised through the Counties’ Association.” The resolution was carried, and subsequently another suggesting a conference of County and. sawmilling representatives to arrive at a possible solution of the question. The matter of making proper representations was left in the hands of the Tniimaniuui. Waitomo. and Rotorua v ounty representatives.