Rates relief emphasised

Press, Volume CXI, Issue 32587, 22 April 1971, Page 3

Rates relief emphasised

(N.Z. Press Association) AUCKLAND, April 21. Local authorities should consider rate relief a prime consideration when deciding how to use proceeds from the petrol tax, said the Minister of Internal Affairs (Mr Seath) today. Addressing the' Municipal Association’s annual conference in Auckland, he said: “The main purpose of the tax is to afford some relief to the ratepayers who, hitherto, have had to carry practically the whole cost of providing local services used by communities as a whole.”

All members of the association were being faced with

substantially increased costs and the new source of revenue would enable them to meet the rises "without the marked increase in rates on a scale that would otherwise h„ve been necessary,” said Mr Seath.

“There have been suggestions from time to time that local authorities will treat this

revenue as some kind of windfall to be used for projects which, while they may be desirable must, in present circumstances, rank low on priority issues. “I am quite sure that your approach will be responsible and that, whatever decisions are made, they will be made in the best interests of your citizens,” the Minister said.

“The Government certainly is not going to tell you how to spend the tax proceeds, but I would expect that some reduction in rates would be the prime consideration in your deliberations.” The Local Authorities Petroleum Tax Act placed upon local bodies the onus of deciding whether the tax was to be imposed, the rate of tax which was to apply, and how the proceeds were to be spent. “Parliament would not have granted this taxing power if it did not have confidence in the ability of local authorities and their members to act in a judicious manner, with the interests of the taxpayers in mind at all times. “As an important side issue, the wider taxing powers you now possess should give more meaning to the local electoral franchise and it will be interesting to see whether it does in fact lead to increased voter participation in this year’s elections,” said Mr Seath.

Industry move.—The Municipal Association has decided to urge the Government to take positive steps to provide suitable incentives for the establishment of industries in country towns.—(P.A.)