UNIMPROVED RATING.

Auckland Star, Volume LXI, Issue 220, 17 September 1930, Page 8

UNIMPROVED RATING.

STRONG CONDEMNATION. MEETING AT NEW LYNN. PLEA FOR BOROUGH POLL.

A lively controversy followed a series of addresses given in strong condemnation of the system of rating on unimproved values, at a meeting held in the Delta Theatre, New Lynn, last evening. Mr. G. Lawson,' Deputy-Mayor of New Lynn, presided over a fairly large, attendance of ratepayers. ) The introduction of unimproved value rating into the New Lynn Borough had resulted in commercial stagnation, similar to the effects in other parts of New Zealand, said Mr. S. George, convener of the meeting. Landholders now wanted to sell their property, but no one was willing to buy, and the borough records showed a deficiency of £8000 on rates levied. A reversion to the system of capital valuation was imperative if New Lynn was to come into its' own. ' "One of the worst features of the 'unimproved' system is that the owner of the small "cottage has to pay. as much iii rates as the man .who can afford to build a mansion on his property," said Mr. J. G. Haddow, the next speaker. "The. poor man is forced to sell everything he can produce from his land to meet these levies, so that the system militates against every principle of sound taxation. A man can, at present, have a great deal of land and very little money, but the unimproved system ignores this fact.'lts effect in forcing owners of unimproved land to sell is of no value when buyers no longer exist. Attractive in "theory, the system has proved of no advantage in practice." The progress achieved by the borough of One Tree Hill through its adherence to capital valuation was outlined by Mr. R. G. Clark, a member of the One Tree Hill Borough Council. The total valuation of properties had increased from £1,896,000 in 1922 to £3,105,642 in 1929, and the annual revenue from £21,305 to £35,000, accordingly. Wherever the ."unimproved" system had been adopted, there had been a decrease in land valuation, said Mr. Clark. As the only security which a local body could give for a loan was its rates,' the combined effect of "unimproved" rating and an extensive borrowing policy had proved disastrous in mar.y districts. The exponents of the system had overlooked the fact that buildings as well as land were producers of wealth, and they had forced people to settle on "pockethandkerchief" sections instead of cultivating acres of Jaild. Mr. W. J. Holdsworth said unimproved valuation had caused great dissatisfaction in Mount Albert, where the system had proved ruinous to suburban farmers. The term "unimproved" was a misnomer, as the value of land inevitably increased when a district progressed. The system had resulted in stagnation in many districts, and he urged a return to capital valuation.

I Some of the arguments put forward were spiritedly contested by members of the audience. Mr. Clark denied the statement that the cultivation of a vegetable.garden resulted in an increase of rates under capital valuation. •■'-. ■ Mr. S. George finally moved:-— "That this meeting is of the opinion that an opportunity should be given the ratepayers of New Lynn to vote for or against the system of rating on unimproved values, and that the Borough Council should take a poll on the question." "I move am amendment,that the matter be left in abeyance for three years," said • an interjector, who had already spoken in favour of the unimproved system. ' ■ .' ' ' J His motion was ruled out, and the original resolution carried. "■ The interjector then inquired .whether the convener of the meeting was a fatepayer, and! appeared rather discomfited when informed that lie was. ■ A vote erf thanks was accorded the visiting speakers. '