Flat Rate Bill To Be Dropped

Press, Volume CIII, Issue 30560, 1 October 1964, Page 3

Flat Rate Bill To Be Dropped

(From Our Parliamentary Reporter)

WELLINGTON, September 30.

The Local Bills Committee has recommended to Parliament that the East Coast Bays Borough Empowering Bill which embodies a flat rate scheme for local finance should not be allowed to proceed.

The chairman of the committee, Mr A. E. Allen (Govt., Franklin), reporting to the House on its consideration of the bill, said today it was evident a majority of ratepayers would have to pay more than their present rates if the scheme were adopted. It was evident the effect of the proposals had not been thoroughly assessed and the committee felt the borough’s ratepayers were not fully aware of the implications. The proposed flat rate for properties was £25, said Mr Allen. At present, 1569 ratepayers paid less than that: 941, now paying more, would

'pay considerably less if the scheme were adopted.

It had been submitted there was no reason why the owners of more desirable properties should pay higher rates—they had paid a higher purchase price in the first place.

But the committee held the flat rate would widen the gap in property values as the saving in rates under the scheme could be capitalised and added to the value of a property.

A flat rate would also retard subdivision where that was possible. All the submissions, except that by the borough council, were opposed to the bill. Mr Allen said the committee had been unanimous in its recommendation, but he reminded the House the whole of the Rating Act was under consideration.