2028
THE NEW ZEALAND GAZETTE.
[No. 55

of graduating the income-tax also will be amended on similar lines. To provide for the loss of revenue that would ensue from these amendments, the rate of graduated tax on the higher valued estates will be increased. There will also be a slight increase in the higher rates of income-tax.

The graduated land-tax will be adjusted and made more uniform, the rate being increased from the point of £30,000 unimproved value upwards. The main purpose of the new graduated land-tax will be to compel subdivision in order to ensure closer settlement of the lands.

Legislation will also be introduced to distinguish for taxation purposes between earned and unearned incomes, so that earned incomes shall bear a smaller burden of taxation than those which are unearned.

Increased exemption in land-tax will be allowed to widows and others in straitened circumstances. A concession will also be made to parents who have to support families.

The workers’ dwellings scheme has met with a very large degree of popularity throughout the whole of the Dominion, and it is proposed to ask your authority for an increase in the sum that has hitherto been set apart for the purchase of land and the erection of buildings for workers’ dwellings. It is the desire of my Advisers to afford every worker an opportunity of living in a home which he may call his own.

From practical experience it has been shown that land hitherto considered unproductive is admirably adapted for fruitgrowing. It is therefore proposed to set aside areas of what has hitherto been regarded as poor land for disposal on easy terms for fruitgrowing under co-operative associations in small holdings, and in order to enable these farms in the early stages to be profitably worked reasonable financial assistance will be afforded those taking up such areas.

My Advisers realize the great importance of local bodies being assisted to carry on the work of colonization and settlement, and, whilst recognizing that the fluctuations of the money-market may from time to time compel care in the raising of money for the purpose stated, are of the opinion that the Dominion should steadily pursue the policy of assisting the outer districts by advancing money to the local bodies for long periods and at low rates of interest, preference being given to loans that are intended to provide access to the backblocks. Assistance may also be given to other local authorities by the State guaranteeing their loans.

I am gratified to be able to announce that the financial position of the Dominion still continues satisfactory. Full information as to recent loan transactions will be placed before you upon receipt of details from the Home-country.

The need for better facilities of transport in many dairying and other districts is becoming abundantly apparent with the increased productiveness of those districts, the traffic being too heavy for the maintenance of adequate road facilities by local bodies. It is proposed to meet this difficulty by an energetic prosecution of light railway branch lines, which would serve as feeders to the main arterial lines and to ports. These would be a great aid to settlement, and a profitable investment for the State. A measure will be introduced to authorize and prosecute these lines of railway, and you will be asked for authority for this work.

My Advisers realize fully the great importance of roads and bridges as the means of permanently and effectively settling the outlying districts, and consider that the financial operations of the Dominion must be primarily directed to these ends. The development of our railway system to give access to lands at a distance from the seaboard must be steadily pursued, in order that our producers may not be unduly handicapped by heavy land freights.

Last year a number of highly respected Members of Parliament were compelled by advancing years and failing health to retire from public life. With a view to meeting cases such as these, a measure providing for establishing a retiring-allowance for men who have served a lengthy period in Parliament will be submitted to you.