Taxation in Nezv Zealand 31 



duction of the new system. This is markedly true of the mem- 

 orandum of Mr. Heyes, who seems to interpret the facts from the 

 viewpoint of a confirmed single-taxer. However, Mr. Heyes is 

 in a better position to observe the effects of the system than the 

 town clerks or other local officials, and his opinion must be ac- 

 corded much weight. Summarizing the results of the investiga- 

 tion, he says : "In the large majority of cases the system has been 

 only a short time in force and in these cases no opinion is ex- 

 pressed as to the merits or otherwise of the system. It is extend- 

 ing more rapidly as the effect is seen in the places where it is 

 adopted and it becomes better understood. The reports, as will 

 be observed, show the results to have been beneficial. From the 

 reports received, and the most reliable sources of information 

 available based on personal observation and inquiry, I am of opin- 

 ion that the effect of the system of rating on the unimproved value 

 would be correctly summarized on the lines required as follows : 



"Building Trade: The effect has certainly been to greatly stim- 

 ulate the buikling trade. The object and tendency of this system 

 of taxation is to compel land being put to its best use, so that the 

 greatest amount of income may be derived from it, and rendering 

 it unprofitable to hold land for prospective increment in value. It 

 has been the direct cause of much valuable suburban land being 

 cut up and placed on the market and thus rendered more easily 

 available for residential purposes, and of the subdivision of large 

 estates in the country, resulting in closer settlement. 



"The effect on urban and suburban land has been very marked. 

 It has compelled owners of these to build or sell to those who 

 would — it has thus caused a great impetus to the building trade. 

 An owner of land occupied by buildings of little value, finding 

 that he has to pay the same rates and taxes as an owner having 

 his land occupied by a valuable block of buildings, must see that 

 his interests lie in putting his land to its best use. The rebuild- 

 ing of this city (Wellington) which for some years past has been 

 rapidly going on is largely attributable to the taxation and rating 

 on land values, so that the supply of building materials could not 

 at times keep pace with the demand. 



"Rent: The tendencv of this svstem of taxation is not to in- 



279 



