No Alternative For Rating Found

Press, Volume CII, Issue 30155, 12 June 1963, Page 16

No Alternative For Rating Found

(New Zealana Press Association)

ROTORUA, June 11.

In spite of considerable investigation and research no one had yet come up with an acceptable solution to the problem of an alternative system of local body finance, said the Minister of Internal Affairs (Sir Leon Gotz) in Rotorua today.

He told the conference of the Counties Association the matter had been brought rather forcibly to his notice by the approval of increases in rates by a number of local bodies. The worst-hit areas were the larger municipalities, said Sir Leon Gotz. "But seemingly and Inevitably the cost of local government is rising everywhere,” he said. “The Local authority which can lower its rates—or even stabilise them over a period—is now. perhaps, the exception.”

Sir Leon Gotz said the recent increases inevitably had brought forth a spate of criticism against the present system of rating as the main

means of financing local government.

Strong criticism had also been made that the Crown, which had large holdings of land and property in some local body areas, did not contribute to the relief of the rating burden. But an acceptable alternative had yet to be found.

“Since the Royal Commission’s proposal for a citizens’ tax. no-one has put forward any firm proposal,” he said.

“I, like others, do not favour a system of central collection and distribution, which would be fraught with difficulties.

“There-is one very great problem, how to collect. The difficulties of taxing a shifting population would be such that the burden would again fall on the ratepayers.” The problem of finance was one where the Municipal Association and the Counties' Association might well get together with officers of the Government to explore the question jointly. In referring to payment of rates on Crown property, Sir Leon Gotz said he hoped the time might well have been reached when some further concessions could be explored. . He could not, however, make any firm prediction that a case for further payments by the Crown would be established.