LOCAL BODY TAXATION

Press, Volume LXV, Issue 19726, 17 September 1929, Page 15

LOCAL BODY TAXATION

PROFESSOR BELSHAW'S VIEWS. [THE PBESS Special Servioa.] AUCKLAND, September 16. "Local bodies in New Zealand have laid far too much stress on rates as a source of finance," said Professor H. Belshaw, Professor of Economics a* University College, in an address to the Auckland Rotary Club. Professor Belshaw said an enquiry might -be made as to the suitability of sources such as special assessments, bettertoent taxes, and land value increment taxes as operated in other countries. The speaker quoted figures showing the increases of the local body debt as compared with the national debt within recent years. He detailed the factors governing the increase. After an examination of the position, certain conclusions could be drawn, Professor Belshaw said. Local body indebtedness and annual loan charges had increased at a prodigious rate in recent years, far more rapidly than State indebtedness and loan charges. While it could not be proved that the present debt was too if it was all economically incurred it was evident that much preventable waste had occurred. The rate of increase was such as to give grounds for some concern, and it was "important that all projects involving indebtedness shorfa be more closely scrutinised, especially in view of the probability of falling prices. Stating that he was of opinion that too much stress had been laid on rates, Professor Belshaw said the whole system of local body income taxes as obtained in Germany should be considered. In some countries much of what was raised by rates was collected as an increment to State taxation. It was not wise for New Zealand to tie itself down to one method of raising revenue, but investigation of ether systems should be carried out with a view to framing more adequate sources of finance.