UNPAID RATES.

Auckland Star, Volume LXV, Issue 25, 30 January 1934, Page 3

UNPAID RATES.

WAITOMO COUNTY.

GOVERNMENT HELP SOUGHT.

SMALL FARM SETTLEMENTS

(By Telegraph.—Own Correspondent.)

TE KUITI, this day.

A request for Government assistance concerning unpaid rates was made by a deputation representing the Waitomo County Council which waited on the Minister of Lands, the Hon. E. A. Ransom, when he arrived here late last night from Putaruru.

The' deputation was introduced by Mr. W. J. Broadfoot, the member for the district. Mr. W. A. Lee, the county chairman, said that in order to open up tha» district for settlement a large road mileage had been metalled, necessitating numerous special loans. Other loans raised left the county with an antecedent liability of £19,000. The county had now £26,000 arrears in rates. Out of that amount, all but £4000 was on land in which the State Advances Department was the mortgagee. Judgments had been secured against the occupiers, who, owing to low prices, were unable to pay, and the county did not desire to make them bankrupt. The position, he said, had already been placed before the Departmental heads. Without relief, it would be impossible for the county to continue carrying the burden.

Mr. R. W. Xeal said that the council was much perturbed concerning rates due on small farm settlement schemes. No rates had been paid during the development, and no official advice had been received regarding the settlers on those schemes. The council was apprehensive concerning future collection of rates. The Minister asked if these rates were paid up previous to the Crown's acquisition.

Mr. Lee: Yes, promptly every year, and we wish the Crown to pay the rates now due.

Mr. Lee explained that on Wilson's scheme (2000 acres) there was an annual rate of £165 overdue, on the Rangitoto scheme (2000 acres) £123, on the Poro-o-tarao scheme (1500 acres) £65, and on the Maori Land Board farm (050 acres) £98. "Scandalous Position." It was stated that the Maniapoto Maori Land Board had requested the Auditor-General to pay the rates, and that he had refused to pass the voucher. It was scandalous that such a position obtained.

Mr. Broadfoot: This is the first I have heard of this, sir. I think the matter should be brought before Cabinet. It is a fully-developed farm, well stocked with sheep and cattle, and could well afford to pay its rates. Mr. Ransom, replying, said the rating question was most serious, the liability resting on the settlers. It was wrong, however, to remove the burden by placing it on other shoulders. If the Crown was forced to carry the responsibility it meant further taxation for the city dweller. A way must be found which would relieve the hardship on all. "As far as special rates are concerned, the position is plain," said the Minister. "On acquiring ownership of a property by ordinary purchase, or by buying in the exercise of powers of sale, the Crown becomes liable to pay the special rates charged on the land at the time of such acquisition. Regarding the payment of ordinary rates, such payment Ls contrary to the present law. The Crown subsidises, rates, and in this way considers that it ifl relieved of the I burden of 1 payment."

Mr. Ransom stated that his Department was in arrears to the extent of £500,000 for the last period, which had to be written off. The increase in the price of wool and meat would assist in paying rates. Although he knew many farmers would not see any of that money, it would reduce their liability.

Regarding the suggestion of the deputation that rates should be paid during the progress of development, the Minister considered that the idea was quite wrong. Mr. C. K. Wilson: Would you be prepared to let us graze the land to meet the rates?

The Minister: No, this must go to meet other commitments. Mr. Wilson: Then that is priority, such as we are meeting in other cases. Threat to Depart.

Mr. Ransom: If you insist on that, gentlemen, I will go out of the district and refuse to develop only in counties where they will not press' for rates. Following a remark from Mr. Ncal, the Minister asked: "Have you no faith in these small farm settlers that they can pav rates?" Mr. Neal: Not at the present price for buttcrfat. "You arc very pessimistic," added the Minister. "Sheep fiarmers felt the same last year, but they are not feeling like that to-day." Mr. Ncal said that, as chairman of a dairy company, he knew many cases where the State Advances Department had orders on a third of the dairy cheque, and the wife and family were hardly able to exist. Mr. C K. Wilson: And the kids being worked to death. ' . The Minister (sympathetically): You can rest assured we will pay the special rate, and where we collect the full amount of interest due we will make an allocation towards the general rate. Mr. Lee, in thanking the Minister for a patient hearing after a long and tiring day, said it would appear that the county would have to continue paying uncollected balance's of interest out ot the general account, which, was quite W ToSay the Minister left to inspect I the small farm settlement schemes in the district. Included in the party was Mr W. Robertson, the Under-Secretary for' Lands, Mr. A. W. Mulligan, private 1 secretary, and Mr. W. J. Broadfoot, M.P.