UNEQUAL COMPETITION-

Auckland Star, Volume LIX, Issue 134, 8 June 1928, Page 8

UNEQUAL COMPETITION-

STATE FREE FROM RATES. SOME INSURANCE GRIEVANCES. Th© unfair advantage enjoyed by the State Departments by reason of exemption from local rates on properties was the subject of comment by another Aucklander, who is antagonistic to any system which places privately-owned business at a disadvantage. The State Fire Insurance Department, which is in active competition with private concerns, enjovs entire freedom from local rates so long as its premises are occupied solely bv the Department. Any portion of the building rented to a tenant or tenants would immediately be subject to the payment of rates, which only went to show how grossly inequitable was the system, since it might happen that the tenant was an insurance company. Properties occupied by State Departments, and on which there is a charge for a special loan, are liable for payment of the special rate till the loan has been extinguished, but in other respects exemption is enjoyed. Just what that privilege means by way of loss to the municipal authority has not been estimated in Auckland, since a number of State properties have not been valued. In Wellington, the City Council has computed the rates on Govnnincnt properties at £13,000 a year. There arc, of course, fewer Government buildings and properties in Auckland, but the sum which would be payable if the properties were subject to rates must be fairly substantial.

It is frequently asserted that the Public Trust Office is the ultimate grave of the legal profession. Special statutory privileges have been granted the Public Trust. It is claimed that contrary to a decision made some years ago borrowers from the Government or the Publie Trustees are urged to insure in the State Office, although the Public Trustee holds large sums deposited by private insurance companies. Insurance men feel they have a grievance in that the State Office having paid income tax only since 1917 is exempted from paying it on profits derived from re-insurances placed outside New Zealand.