RELIEF FROM RATES

Press, Volume LXIX, Issue 20957, 11 September 1933, Page 10

RELIEF FROM RATES

Government Action Contemplated RURAL POWER COSTS Action to give relief to the community by making it possible for local bodies to reduce rates is con- I templated by the Government, according to a statement made by the Acting-Prime Minister (the Rt, Hon. J. G. Coates) at Akaroa on Saturday. Mr Coates was asked whether in view of the profit which the Lake Coleridge undertaking was showing, the Government would make a reduction in the cost of electrical power to rural power boards. "I shall be glad to go into that question again," he replied, "but up to the present we have felt it necessary to maintain all sources of revenue. Last year the electrical account showed a handsome profit, and was a material help for us. Fixed Charges. "The question really boils down to one of fixed charges. We have certain proposals in mind to reduce fixed charges by making it possible for rates to be reduced. I take it that it would not matter exactly how the reduction in fixed charges came about; if we give a reduction in the cost of power we have to give it all round, and it is really all one question. Our policy on the supply of electric current is definitely to give concessions as soon as we can, but the problem is whether we have reached that stage yet." Mr Coates said he had recently cabled the Prime Minister on the matter, and immediately Mr Forbes returned the Government would consider the point that had been raised—not merely the power charges, but the general effect of heavy rates on the ratepayers of New Zealand.