CITY RATING.

Auckland Star, Volume LIX, Issue 120, 23 May 1928, Page 6

CITY RATING.

Your correspondent "Father" tries to prom that buildings are increased in value |p work of local holies in providing puNkf 1 utilities, saying "the owner of a house or shop . which had neither gas, water nor electric light fla would have a poor chance of letting or selling his property." No doubt; so also if it wu -|| minus the roof! I am not aware, however, that local bodies instal gas, water or electric light in buildings, but if they do they charge for such work directly and not through the rates. The mere laying of mains along a road does not add one penny to the value of a house, which is based on the cost of replacement. This cost is actually reduced (not increased) by the fact, known to the builder tendering, that water may be obtained dose handy and that a good road has been formed ' y p to the section. As for goods on shelves bong increased in value by better lighting, I thought "supply and demand" were the determining factors. Has there been a general rise in commodity values as the result of the discovery of electric light? No, the truth is that invention, etc., tends to reduce the price of goods. "Father" does not deny that public utilities enhance land values. The fact is much too obvious. He knows a property in a marina suburb paying £20 in rates which under the annual value system would be about £8. Shoes pinch occasionally, but if the ratepayers of Auckland want to test the matter for themselves and find out what would be their position under the unimproved system they have only to reckon 6d in the £ on the bare value of their land. When they have worked this out let tliem compare the result with their latest rate demand. In the great majority of cases owners of improved properties will benefit. C-ELN.