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Hokitika Guardian, 19 October 1931, Page 4

Tiik operation of the graduated land tax formed the subject of a reference in the House early on Thursday morning by the Hon. J. G. Coates, who pointed out the difficulties of land owners who aie forced to pay taxation from capital at the present time. It seemed paradoxical that in spite of the operation of the graduated land tax over 49 years there were fewer men on the land to-day than a year ago, in spite of the fact that the main object of the , tax. was to enforce closer settlement. This was a point worth considering. One had to ask what effect the graduated tax had upon the development of land of mediocre quality. He could recall an instance where, as the result of the tax, land had actually gone out of occupation. The Lands and Valuation Departments had advised that this land was not fit for settlement and had recommended that the Crown should not consider its development. If capital could he induced into country lands hv a. reduction of taxation it would be desirable at the present time, but it. had to be recognised that most of the Dominion’s development was being done with Government funds, and it would be unwise to attempt to continue where th^,, expenditure was not warranted. " Jn prosperous times it was possible for the land owners to meet their obligations, although that was not to any that the requirements were absolutely fair. In spite of the- fact that the graduated land tax had prevented aggregation in the pa«t that was not so to-day. Tt was said that the farmers to-day would not sell her properties at Government valuation, hut it was not extravagance to say that hundreds of farmers were willing to sell at the Government valuation. It was perfectly clear that if men were borrowing money to pay their taxation the position would become generally and increasingly difficult. It would be far better to encourage these men to carry out development and to create employment at the present time. In addition it had never been intended that the graduated land -tax should act harshly in the cities and prevent development there. Mr Coates said that half the graduated land tax wax paid in the cities, but it was never meant that the tax should operate to the detriment of city development.