Rates ‘good value’

Press, 19 June 1979, Page 14

Rates ‘good value’

PA Rotorua Rates produce as much value for money as any other payment, according to the Minister of Local Government (Mr Highet).

He told the Counties’ Association in Rotorua that some people had an unrealistic view of rates, thinking in these times of inflation that they should receive the same or even more services from a local authority without any additional cost.

He said that delegates should not be carried away with expressions of doom and dismay about rate increases.

In defence of the Government’s revenue-sharing policy, he said that this source of money provided a substantial part of localbody income. Taxpayers were contributing nearly S2OOM to

local government by way of direct grants through the Government.

He was hopeful that there could be more revenue sharing through untied grants. But with the economy as it was any pressure for additional revenue sharing at this stage would be mistimed.

Mr Highet said New Zealand local authorities were much more heavily supported by the Government than their counterparts in Australia. He said that a local bill to be submitted to Parliament by the Waitemata City Council could possibly be a prototype for general rating legislation. Waitemata is seeking power to levy on every property a minimum charge not exceeding $lOO The council would then

fix its rates to meet requirements.

Mr Highet again expressed confidence in the success of local-govern-ment reorganisation into regions.

He expected all the new regions to be in existence by the time the association met next year.

He promised county councils a review of the grants paid (instead of rates) on Crown properties.

The councils had been asked to provide information on the grants “and I am hopeful that we can do something to adjust this in due course.” But this did not mean that the Government intended to pay full rates on all Crown land, although perhaps full grants should be paid on Crown residential properties.