.
| [A paper presented to
the Committee of Tax Reform Australia, Melbourne, Australia. 7
November 1991] |
INTRODUCTION
Georgists around the world have good reason to be dismayed, despondent
and exasperated at the lack of progress we have made after more than 100
years; the difficulty of selling our cause to a world that cries out for
it; the slowness with which we make any gains at all and the speed with
which the gains we do make are taken from us - not that we seek the
gains for ourselves.
In NZ in recent years we have had a Labour Minister of Finance in Roger
Douglas, who until 196^8 was a member of our Association, as was his
father, a past President of the Labour Party. You would expect that with
that background some crumb of encouragement would be cast our way. There
was talk of a Resource Tax but no timorous steps were ever taken toward
it - not even an increase in the Land Tax. As an Accountant he confused
Land with Capital believing that capital invested in Queen Street
generated jobs. Not under A.R.V. Rating it doesn't -- the reverse in
fact.
You would expect that Michael Bassett a Labour Minister for Local Govt
about to re-structure it on a regional basis would recognise the
relevance of a Rating system adopted by poll in 81% of all Local
Authorities and in 90% of municipalities i.e. where the people are,not
the goats and the Wapiti. But no, he first contrived a reversion to
Capital Value Rating in Christchurch, Dunedin and above all in
Wellington. He then abolished the traditional right to a poll and
appointed a Local Govt Commission to implement the restructuring which
wherever possible imposed Capital Value Rating. Finally he proposed that
Capital Value Rating then in place or adopted later (by any Council now)
would be irreversible.
A century of progress democratically achieved, mindlessly jeopardised
and undone. You would expect that as a Professor of History he would
understand the philosophical evolution occurring, from the laissez-faire
of last century to the communism of this and the reconciliation of the
two - at least when it was repeatedly pointed out to him. But no. Even
the prospect of electoral defeat due to rising unemployment seemed only
to quicken their suicidal frenzy and their opposition to the key factor
that would justify or. at least accommodate all else.
Douglas' successor Caygill, after first in 1989 lowering the rate of
Land Tax but widening the base, in 1990, in a forlorn bid to pre-empt
National Party policy, abolished the tax in two steps, the last step
this year. In so doing he did for the Tories what not even they had ever
done themselves in 100 years. He has since asked to be relieved of the
Finance spokesmanship in Opposition. What is there to oppose?
The combination of ignorance, inertia and intrigue, of cupidity and
stupidity, baffles the best of us. So, where to from here?
THE PROPOSAL
That the Georgist movement around the world concentrate its resources
on a constitutional Court Action requiring the Crown to collect the Rent
of Land for Revenue. It is a constitutional issue and must be mounted as
such.
Preferably this should be done in NZ because of the clinical conditions
there. All the global issues of history and this day are being hammered
out there at increasing speed and under increasing pressure. There is a
good evidential history in NZ and the jurisprudence of British Law still
applies.
THE CASE
- The "estate in fee simple" title granted by the Crown,
under which land is held not owned, by definition implies an
obligation.
Fee is a derivative of fief or trust originally granted by the King
to certain Barons in return for services to be rendered in time of
battle and/or on state occasions -- an acknowledgement of the trust.
About the time of Runnymede (1215) the Barons not only curtailed
the King's tyrannical rule without trial but at the same time
entrenched their privilege by satisfying their obligations in other
ways e.g. a beer tax, other levies on the poor and then the
enclosure of the Commons.
This privilege the Barons arrogated to themselves has become
fragmented till today it is bought and sold as the freehold title
i.e. the right to claim the economic rent, with income and other
taxes in lieu.
- So the "estate in fee simple" is essentially a lease on
trust, without specified obligations, conditions or term i.e. an
open-ended lease.
This basic status readily admits the inclusion of more stringent
terms such as Town Planning ordinances, environmental regulations
and the like, as terms of the lease which recognises and gives
effect to a fundamental social relationship - the Crown and subject;
the community and the individual; landlord and life-tenant.
THE EVIDENCE
The empirical evidence is too vast to recite here and would have to be
topical at the time of the case. It might include the recent graphic
evidence in Australia, NZ and elsewhere showing staggering increases in
land prices causing zero increases in wages thereby eventually bursting
the bubble of unsupportable speculation in natural resources rather than
their use which generates full employment and prosperity.
As a matter of demonstrable practicability the evidence would have to
include the extent of Land Value Rating and Land Tax in Australia and
NZ, the Crown Leases of Hong Kong, Australia and NZ and similar
experience in Denmark, U.S.A. and elsewhere.
THE POLITICS
The case could readily postulate the resolution of basic political
issues; the reconciliation of left and right; the similarity between
native lore and the jurisprudence of British law; the means of
implementing Green policies and so on.
THE METHOD
Assuming judgement in our favour we would be expected to propose the
method implementing it which is not the main purpose of this paper. In
general however whether as interim or permanent measures -
- All Land Value charges - Rates, Taxes or Leasehold rentals etc
should t Taxation Credits to be set against any other taxes payable.
- Crown and Public Body Leases should be updated and reviewed
annually. NZ Regional Govt is the obvious administrative unit.
- A moratorium on present titles should be set at say 50 years
hence as proposed by Justice Else-Mitchell, or at earlier or even
later death.
- Such other mechanics as Georgists, professional lawyers, valuers
or administrators might recommend to apply the principle
appropriately to broad acres, city sites, minerals, water,
radio/T.V. channels or whatev else.
If native races can collectively lay claim to what they regard as
their order to secure some measure of individual rights, surely we
can successfully propose a range of western techniques (tax, lease,
licence royalty, fee) that" will satisfy both collective and
individual rights f the rest of us if not in fact for all of us.
CONCLUSION
The publicity of such a case would command the attention of all at no
cost, issue, the evidence and the consequences would be projected into
centre stage for all to examine, support or to contest if they dared.
Even if the case failed legally the publicity would make it imperative
politically.
For over 100 years, hundreds of years, this enormous social tort has
gone uncontested, contrary to the fundamentals of British jurisprudence
and the commands of Scripture: "Your land must not be sold on a
permanent basis bee you do not own it." (Lev. 25:23).
This is not a mere political, fiscal or economic measure. It is a
constitutional issue and must be addressed as such. If a constitutional
la can conjure up a Bill of Human Rights impossible of implementation
without case and unnecessary with it, surely we can construct a case
based on all the specifics we have available to us. We must make a
constitutional issue of and require the Crown to enforce the obligations
legally due to it.
P. S. The main points of the foregoing
appear to be fully support by the remarks (herewith) of the Hon. Justice
Else-Mitchell in 1966. They were valid then and are urgently imperative
for our movement now.
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