148 LOCAL TAXATION 



it was also pointed out that taking such a step would give a 

 decided appearance of " party " to the Chambers. The 

 Chamber decided that as opinions differed as to the powers 

 of the House of Lords, it was not for them to express an opinion 

 upon a constitutional point ; but that as regarded the 

 semblance of " party " bias, they might equally be accused 

 of that if they refrained from stating their views on a measure 

 so detrimental to agriculture, simply because it had been made 

 a party question in Parliament. 



It was then left for the Local Taxation and Parliamentary 

 Committees to prepare jointly a statement for presentation 

 to Lord Crewe and Lord Lansdowne, and as those Peers both 

 declined to receive the deputation, but asked for a statement, 

 this sixth report was sent to them, and to every member of 

 the House of Lords. A portion of this report is subjoined : 



3. The Chamber is of opinion that taxation should be based 

 on income, and according to " ability to pay." Under the Bill 

 the land is taxed and not the individual. Land is the raw material 

 of the farmer, and he occupies it with a view to profit ; and the 

 Chamber feels that on behalf of farmers, which it represents, this 

 attempt to tax their raw material on capital value for purposes 

 of income should be resisted. 



It is quite clear that the present proposals are merely tenta- 

 tive and " the thin end of the wedge," and the Chamber views 

 with alarm this novel form of legislation. 



They note with apprehension that agricultural land with 110 

 building possibilities either immediate or remote is to be valued 

 by the State, and unless this is pure waste of money the only 

 possible construction is that at some future time this valuation 

 will be used to the detriment of agriculture. It is quite clear that 

 it cannot do any good to farmers, and the probability is that it 

 will do harm in the future ; consequently, the Chamber strongly 

 objects to its being carried out, apart from the cost, which will 

 apparently be a serious charge on the general taxpayer. 



4. The Committee feel that in answer to the above it may 

 be said that under the Bill all agricultural land while remaining 

 agricultural is wholly exempt from fresh taxation as far as its 

 agricultural value is concerned. The Committee agree that this 

 is true, but this is a very different statement from that frequently 

 made that under the Bill agricultural land is exempt, and is not 

 subjected to any fresh taxation. 



Under Clause 2 of the Bill it is admitted on all sides that the 

 rise in value of agricultural land will be subject to Increment 

 Value Duty, and this point was clearly brought out in the Report 



