THE LAND PROPOSALS.

Taranaki Daily News, Volume L, Issue 60, 17 July 1907, Page 2

THE LAND PROPOSALS.

FREEHOLD FOU L.I.P. TENANTS. NATIONAL ENDOWMENT PROVISIONS. 0,000,000 ACRES TO BE SET ASIDE." ' SIC'iTLEMKXT OF NATIVE LANDS. NEW CRADUATED TAX SCALE. Wellington, July l(i. In presenting the Financial Statement, Sir Joseph Ward outlined the ("iovernment's land proposals last night. After outlining Uie J)o |i ( .,. of v ; !r J.il,. eral (lovcrnnien't with regard lo encouragement of all land and agriculture pursuits the finding of markets, and provision of cheap public utility services in the past, he said the (lovcrmnont felt that the existing system of land tenure had in many respects served its day, end was no longer required. In order to prevent excessive holdings and aggregation of estates in land, and at the same time

cave reasonable scope for the enterprise md energy of our settlers, the "Graduaed Land Tax will be increased on es:ato< of £40,(1110 or upwards in uniuiiroved value. In computing values, busi-

:ies.-. premises in (own and country, and in the case of a country estate, tlie principal homestead site will not be included.

The present holders of leasos-in-per-petuity will be offered the option of freehold, and, instead of having to incur the

risk of auction as previously proposed, this option will be given at a price to lie fixed by arbitration as.on the date on , which they give notice of their intention Ito purchase. The proceeds of sales will be paid into the Land for Settlements

Account, and be applied in acquiring newestates for settlement.

Of the existing unsold Crown lands, a substantial part,'say, 0,000,000 acres, will ibe set aside as national endowment, and

the residue will he open on the optional system as at present, save that, instead of the present lease in perpetuity, there will be a renewal lease; that is, a lease for a term of sixty-six years, with perpetual renewal for similar terms, the rent for each term being fixed by the valuation of the lmd (withoutimprovements), as at the commencement of each successive term. The National Endowment hinds will be disposed of only on the renewable lease system. The proceeds from endowment lands will be devoted to education and old age pensions, seventy per cent, to the former nnd thirty per cent, to the latter.

The native land question has given every Ministry for the past quarter of a century anxious consideration. Tt involves two matters of immense importance to the country. First, the proper settlement of (he Maori people, so that they may hecomc industrious citizens; and second, the utilisation of the vast areas that arc under Maori tenure unused, and not likely to be used by the Maori people. Of the land the Native Land Commission have already dealt with, viz., 526,077 acres, they recommend that 219,115 acres be reserved for Maori occupation and farming, that 307,801 acres be made available for European settlers, and they anticipate that other large areas will be similarly available in the near future. The Commission, in order that

no delay may take place in carrying out the settlement of people on the unused

I land, have in their last report asked that |their recommendations be submitted to 'Parliament for action. One of the primary causes of the unsatisfactory condition that has for long continued in reference to the disposition and settlei nicnt of Maori laud, particularly in the ! North Island, has been due to'the undesirable methods of private treaty. "With the object of insuring that all sections of the community may have an opportunity of competing for all Maori i fonds offered from time to time, Parliament will be asked to pass legislation and put into effect this purpose, and to provide that all native lands proposed to be alienated, either under leasehold or freehold tenure, shall be disposed of after full advertisement by public competition.

A considerable amount of doubt seemed exist in the minds of lion, members

last session in reference to the areas

of lands in the several districts to be set aside for endowment purposes. The nine million acres proposed to be, reserved for endowment purposes are distributed proportionately in each district as follows: Auckland, 000,000 acres; Hawkc's Bay. 1:15.000; Taranaki. Oil.OOO; Wellington, 00,01)0: Nelson, 1.350,000; Marlborough, 450,000; Wostland, 1,035,000; Canterbury, 1.800,000; Otago, 2,250,000; Southland, 000,000. Total, 0,000,000 acres. Under the provisions of the Land for

Settlements Acts, frequent references to the Compensation Court In order to arrive at tlie price to be paid for estates acquired for settlement are necessary, and have proved unsatisfactory. An alteration in tlie present system is desirable, and the House will'he asked to legislate so as to provide that the valuation under the Valuation of Land Act

liall be the basis upon which the price s to bo ascertained, with 10 per cotii. iddcd, when the estate is Valued at ?ss than .€25,000, and 5 per cent, added .•hen the estates valued between £25,00 and £50.000, and 2'/, nor cent, from £(50,000 upwards. In pursuance of the Government's toady and persistent endeavor to secure lie closer settlement of the coiintrv iroposals wiU he laid before Parliament iroviding for increased rates of tin iraduated Land Tax in the cases of vers argc_ estates in order to induce theh iib-division and prevent aggregation. Ti !nis end t propose, while making no al ■eration in the present scale of gradua .ed hind lax payable by ail owner b ess than .040,000 unimproved valued, ti .'.ibslilulc a new scale of graduated lam iiix for the present ope in respect o wiiitk of £40,001) unimproved' vnhti yiid over. This new scale (lo be calle, the Initial Scale) will commence a £40,000 (unimproved value), with : graduated tax of Ss per cent., and ris' bousand by thousand in. successive uni form increments of one-fifth of Is p■ent, until (he maximum rate is reaolic, it £200,000 (unimproved value), who, il will be £2 per cent. To (his initie *ale will be adder! an additional ,->t >l 2o per cent, of the .Scale rate. Busi noss premises in (own and eounirv wil io exempted from (he open)ion of th nhovomontioned additional rate, and ii ,"' t ' ,Sl ' " f «>uu(ry ...-dates the prin.-ipa homesteads site will be similarly ex •haled, the reason IW tins being (hat i is not intended, nor indeed would it b l"st''liable, to attempt (~ have Imsines pi omi.-es and homesteads cut up or re lucod, or interfered with. Tlicv do no stand in the way of the settlement o nur people on (he '.and. and the obiee of the Graduated Laud Tax is to proven large areas becoming centred in indiviiln sis or compaulos. Tbc rate of the C'radu niod baud Tax uiider the "Initial Scale, are higher than the present rates, th. new initial rate at £40,000 being (as al ready mentioned) 8s pcr cent., agains the present tax of 1 4-10(1. in the pound which equals 7s 3'/ 3 d per cent.; whU the. now initial rate at £200,000 is £: per cent., instead of the present, of 3( in ihe pound, which is £1 5s per cent, while to this initial rate in all cases, ox topi those above staled, must be addei ihe additional rate of 25 j,. r cent. Th total Graduated band Tax on a propert' of_ C 40.000 (other than business pro mw's), town or country (not owned b; an absentee, who is liable, at present ti an addition of 50 per cent, on the tota Graduated band Tax payable bv him will therefore be 10s per colli.'of tin unimproved value and on one of £2OO, 01)0 unimproved value £2 Ids per cepl These percentages represent taxes o 1 l-5d and Od in the pound unimprovei value respectively, I propose to exclud minerals, standing timber, and growing flax from assessment for Laud Tax., boti ordinary and graduated, except in case whore such are held for speculative pur poses, or as a monopoly; and to asses instead, for income lax. the profits do rived. 1 submit that this will be faire than the present one of dealing with tin mineral, timber and (lux industries fo taxation. The present method has provei incipiitable and unsatisfactory in th pasb The assessment of minerals fo band Tax, owing to the great difficult; of estimating the value of mining pro' perty, has so far practically resulted ii the escape of the owner of mines fron land tax, while (unlike the lessee of i mine who is liable for income on his pro fits) the owner has hitherto been exemp from Income Tax. 'i'he assessment o standing; timber and growing flax fo band Tax, although practicable, causc hardship in connection with the Gradu ated Land Tax in the eases of the bom fide timber and flax Industries, and as re gards timber is calculated to unnecos sarily hasten the destruction of valuabt forests.