Rates By Instalments

Press, Volume CI, Issue 29860, 28 June 1962, Page 12

Rates By Instalments

The Hutt County Council has hit upon a possible method of overcoming the difficulties of local bodies in collecting rates from residents described as “ the new type of “ ratepayer ”. These are persons who, having availed themselves of family benefit capitalisation and 3 per cent, housing loans, have not had to make any cash payment themselves, and therefore may not have considered seriously all the obligations of houseownership—which include maintenance and the payment of rates. The Hutt County Council has devised a monthly instalment plan. Ratepayers tear off payment forms from payment books, send them in w'ith instalments, and get them back as receipts. A primary purpose of the innovation is to help people overtake arrears; a- second-

ary purpose is a “pay-as- “ you-go ” scheme for those unable to budget satisfactorily for the lump-sum payment The “ pay-as-you-“go” scheme has much to commend it for other ratepayers than those for whom the Hutt County Council designed it. Wage-earners, now well accustomed to meeting income tax on the pay -as - you - earn system, might be happy to pay their rates in the same way. The scheme might cost local bodies something to administer, but this would almost certainly be more than offset by relief from overdraft interest. Indeed, it might be worth while for local bodies to offer some discount to encourage a “ pay-as-you-go ” scheme, which has the advantage not only of promising some help in collecting arrears, but of providing a steady income through the year.