PROMPT PAYMENT OF RATES

Auckland Star, Volume XLVI, Issue 60, 11 March 1915, Page 7

PROMPT PAYMENT OF RATES

A SUGGESTED REBATE. Efforts have been made by various local bodies to induce the Government to amend the Rating Act in the direction of permitting a rebate upon rates paid within a specified date. The object is to encourage prompt payment and save money to local bodies in the shape of interest upon overdrafts pending revenue being received.

Writing to the Eltham County Council upon the subject, the Right Hon. W. F. Massey reminds that body that a remit on almost identical lines when submitted to the Municipal Delegates' Conference in July, 1914, was not approved. While he had not yet had time to go thoroughly into the matter, Mr. Massey considered it would mean that the local body would have to strike a higher rate in the first instance in order to have the same amount of revenue after giving the rebate. In

some cases local bodies might already be rating up to the maximum allowed by law, which would tend to complicate matters. Another point was that such an amendment of the law would have a bearing upon the payment of subsidies to local authorities. At the present time no subsidy was paid upon rate representing tlie 10 per cent penalty. Under the proposed amendment of the law local authorities would earn subsidies on the full rate, reduced to the equivalent of a threefarthings rate on the capital value in cases when the rates were paid within the prescribed time. Thus, the liability of the Crown-for-payment-of subsidy would be increased, and he was not prepared to agree to that. On the other hand, in cases when the rate levied is above the equivalent of a three-farthings rate in the £ on the capital value the local authorities -would lose in Government j subsidy.