AFFORESTATION AND LOCAL TAXATION. 3 



death duties often result in the destruction of silvicultural 

 schemes. It is worth pointing out, however, that if such a 

 system of co-operation were adopted as was sketched in the 

 article contributed by the present writer in the July issue of 

 1908, and which is ably developed in the article contributed in 

 the last issue of the Transactions by Lord Lovat, death duties 

 would cease to affect the problem. Under such a scheme the 

 successor's interest on death would become what is known in 

 the Death Duties Acts as an " Interest in expectancy," and 

 accordingly no duty could be claimed till the timber was 

 realised.^ This of itself affords a strong inducement to private 

 owners to adopt such a system of forestry finance, provided the 

 State will assist in the way proposed. 



2. Afforestation and Local Taxation. 



By Sir Kenneth Mackenzie, Bart. 



Nothing very definite seems to have been stated as to the 

 effect a National Scheme of Afforestation would have upon the 

 incidence of local taxation. Little is said in the Report of the 

 Select Committee of the House of Commons, which sat in 

 1885-87, as to the effect of rates, though it is mentioned that in 

 America all land planted is exempted from taxation and a 

 bounty is offered for planting. The Departmental Committee 

 sat in 1902, and had evidence as to the incidence of local 

 taxation from Mr Maxwell of the Local Government Board ; 

 but this particular detail as affecting the question of afforestation 

 is scarcely noticed in the Report, and the Committee were " not 

 prepared to make any recommendation on the subject." Clearly 

 the question of local rates affects the initial cost of a plantation 

 and its maintenance for a considerable period, and it is a con- 

 sideration which warrants careful investigation from the tax 

 payer's point of view. It seemed, therefore, desirable to make 

 some inquiry as to how afforestation on a national scale would 

 affect those parts of the West Highlands with which I am well 

 acquainted, as it is probably in those districts that land can 

 be obtained most economically for a national scheme. Possibly 

 the general result of such an inquiry is more or less applicable 



^ Since the above was written effect has been given to this principle in 

 the Budget Bill, much to the satisfaction of silviculturists. 



