RATING ON THE UNIMPROVED VALUE.

Manawatu Herald, Volume XXIX, Issue 3776, 12 October 1907, Page 3

RATING ON THE UNIMPROVED VALUE.

Address by Mr A. W. Hogg, M.H.R. Despite the boisterous weather on Thursday night, there was a large attendance of ratepayers, including a sprinkling of (be fair sex, to hear the address- delivered by Mr A. W. Hogg, member for Masterton, on the above subject. The Mayor, Mr B. G. Gower, occupied the chair, and Mr John Stevens, member for the district, also occupied a seat on the stage. The Mayor, in opening, expressed his pleasure at seeing so many people present. He said he did not intend to express an opinion on the subject to be dealt with, but desired, in common with those present, to learn something of this system of rating from Mr Hogg. He then called upon Mr Stevens to introduce Mr Hogg to the audience.

Mr J. Stevens, M.H.R., said he had pleasure in introducing Mr Hogg to the meeting. The} 7 had worked together as colleagues in Parliament and on the Land Board. Mr Hogg represented Masterton, one of the most prosperous and progressive districts in the colon}’, and he was assured that its position and reputation were largely due to the exertions of its representative. They sometimes differed in their views, but he must say that no one was prepared to make greater sacrifices for the public benefit than his friend. (Applause.) Mr Hogg, who was received with applause, thanked the meeting, and especially his colleague, Mr Stevens, for their cordial and kindly reception. The question of local taxation was one to which he had given a life study. A good many years ago, when in Victoria, he had witnessed the evils arising from the taxation of improvements. He had seen the vinegrowers tearing out their ten and twelve-year-old vines, because they were taxed for their small holdings as much as the sheep owner for his huge estate. On the occasion of the last interview he had with the late Mr Ballance, this question was discussed. Mr Ballance said he meant to introduce this reform, but he thought it should be made permissive. In 1896 the Rating on Unimproved Values Bill was passed. It enabled the ratepayers to abolish the penalty imposed on improvements. Under the system of rating on the annual value, the owner of land who dared to spend money on the improvement of his property, was fined in the same way as if he had mercilessly assaulted his wife, or committed some other abominable offence. (Laughter and applause.) If he erected a good dwelling, or outhouses, or stables, or fences, he was taxed according to their value. The more he expended, the greater became his local taxes. Enterprise was consequently discouraged. (Hear, hear.) If he thought proper to be a ‘ ‘ stick-in-the-mud,” and keep his land unoccupied, waiting for the unearned increment, he escaped his fair share of taxation. Masterton had got rid of the old system, and his residence, being exempted, his general rate .had been reduced, but the taxation of the paddocks around him had been increased, with the result that the vacant places were being built upon. The city of Wellington, Petone, and the various suburbs, had all adopted the new system, and the building trade was never so brisk there as at present. Wherever the system was tried it had brought prosperity. During the last 11 years, 72 local bodies, consisting of 37 boroughs, 21 counties, and 14 road districts, had adopted it, and although they could take a poll and go back to the old system, none of them had done so. The young borough of Eketahuna had recently adopted it by an overwhelming majority. The owners of vacant or unimproved land need not be apprehensive. He had no wish to mislead them. The Borough Council would require their revenue, and the taxation removed from buildings and other improvements would have to be placed on the land. But in no instance would the land tax be excessive. It would possibly be about double what it was at present, but the general prosperity would increase the land in value, and instead of the owner suffering, he would be a great gainer. (Applause.) When they took the taxes off labour and its products, they acted like the tradesman who took down his shutters and invited business. They removed the penalty on buildings, and induced people to spend their money on improvements. Every new shop or residence employed or attracted labour —the carpenter and joiner, the plumber, the painter and paperhanger, were all required, and in this way the industrial population, which was the backbone of every community in town and country, was increased. (Renewed applause.) This meant prosperity of a permanent kind. At present the occupier with a cottage on his section, had to pay from five to ten times as much as the owner of the unoccupied section alongside, who was keeping him without a neighbour. The Government property tax, which the late Mr Ballance and his colleagues had abolished, kept the country back for years, driving labour out of the colony. The existing system of local taxation in Foxton, constituted a similar infliction, and must block progress and prosperity. (Hear, hear.) He strongly urged the people to give the new system a trial. If they did not like the change, in

three years they could take a fresh poll and go back to the old system. In no instance, however, had this been done, and this was a proof that rating on the unimproved value had given satisfaction everywhere. He was greatly pleased at the attention they had given him. In tendering the advice he had given, be had no object save the public welfare. The place he represented had made good progress, and he wished to see other centres like Foxton full}’ share in the general prosperity. (Applause.) Mr Hogg invited questions, and was asked by Mr Jonson whether the new system of rating would affect Education Reserves. Mr Hogg replied that he did not think so. In reply to further questions, he stated that the principle had nothing to do with the building regulations. Mr P. Hennessy moved a hearty vote of thanks to Mr Hogg, and remarked that he was in favour of a poll being taken on the question.

The resolution was seconded by Mr Jenks, and carried by acclamation. Mr Hogg thanked the meeting, and referring to his visit, said he had been greatly impressed with the signs of prosperity and outlook for Foxton. It would give him great pleasure to co-operate with Mr Stevens in trying to advance the prosperity of the town and district. (Applause.) Tlie usual compliment to the ehair terminated the meeting.