Retailers 'up in arms’ about rates increase

Press, 27 May 1978, Page 7

Retailers ' up in arms’ about rates increase

The industrial and com- 1 mercial sectors of Christ- ' church do not seem at all happy about the 22 per cent > rates increase they will face ' this year. Some businesses have < strongly criticised the differ- i ential rating system and indicated that the increase ' could further depress industry and commerce in ) Christchurch. The directors of the 1 Canterbury Manufacturers’ ( Association (Mr I. D. Howell) said that reaction from asso- ' ! elation members had indie- ' )ated concern about the in- ; j crease. Some businesses would find it very hard to ' absorb the cost. ) “The council talks about); ) the need for more jobs but) 1 | this does not encourage; | businesses to expand,” Mr j Howell said. ‘ The managing director of 1 Haywright’s (Mr G. R. Lawn) said he was not happy about the differential 1 rating sytem. “It loads commercial pro- 1 perties with a disproportionate amount in ; rates,” he said. Retailers 1 were not able to recover the increase through increasing prices of goods. Two retailers expressed; concern that the commercial' centre of Christchurch could become a “dead centre.” “With clear-ways, and dif- ■ ferential rating they are doing everything possible to ) reduce business in the centre ) of the city,” said the manag- ) ing director of Drayton ; Jones (Mr G. W. Drayton).; “The Mayor (Mr H. G. Hay)) ought to know better,” he; said. i The manager of Bal-,

lantyne’s (Mr C. W. Ballantyne) said that his company understood the need for increases in rates, but he warned against the move to load the commercial and industrial sectors with an increasing proportion of the rates. Mr Ballantyne said this could easily inhibit renewal of the city centre on which iso much had already been ■ spent to beautify Christi church for residents as well las tourists. A spokesman for Lane, : Walker, Rudkin, Ltd, said! that the clothing trade was: I already depressed and the: ' increase came at a time when it was necessary to; keep costs down as much as! possible, so that production could be maintained. The retail industry was at a bigger disadvantage than; any householder or manu-i Ifacturer because it had not ! been able to recoup any inI crease in cost structures ' since 1970, said the manager ■ of Beath’s (Mr E. J. McGregor). ! “The increase can omy I make matters worse,” he said. “The retail industry pays heavy rates and is already on differential rating, which hurts.”