CROWN PRIVILEGES.

Auckland Star, Volume LXII, Issue 86, 13 April 1931, Page 6

CROWN PRIVILEGES.

Mr. Justice Blair's decision, that land mortgaged to the Crown was liable for rates, was received with satisfaction by local bodies, and there has been corresponding disappointment at its reversal by the Court of Appeal, which holds that such land is only liable for rates that were owing before the Crown became interested in it. The statement now made by the Prime ilini.ster, in response to a protest against the situation created by this decision, does not improve matters. One reason given to justify this privileged position taken up by the Government is that, unlike the private mortgagee, it does not make a profit out of its lending of money on land, but acts in the interests of the whole community. This is an inadequate reason. It might be said of the Auckland Savings Bank that it does not look for profit in the ordinary sense of the term; it makes a profit, but the community benefits. It has not been'suggested that the Savings Bank should have a special privilege as a mortgagee. It does not matter to the local body involved —and every local body in New Zealand is concerned with the effect of this judgment —what are the motives of the mortgagee. It wants its rates. It supplies public utilities for land on which money is lent, and properties on which the State advances money require roads and water services no less than those on whom the profitseeking capitalist has a lien. If properties mortgaged to the State are exempt from rates, the money must be found by the other ratepayers. The situation is manifestly unjust. It is another case of the State setting itself up in a position of privilege, and if this country loved freedom and justice as it should it would insist on all these State prerogatives and privileges being carefully scrutinised with ft*view to drastic changes. The Governmentis interested as mortgagee in so much land that more will certainly be heard of this particular matter.