Council reacts to rates delay

Press, 11 August 1979, Page 22

Council reacts to rates delay

PA Cromwell The Government’s failure i to pay rates on Ministry of Works and Development : project houses built to cater . for workers on the Upper . Clutha hydro development I scheme has prompted the Cromwell Borough Council to withdraw services to new i houses. The council has told the Minister of Works (Mr W. L. (Young) that it will continue i to supply services only to i project homes occupied before July 20. Mr Young has also been 1 told that the council intends to maintain its stand until the rates issue is resolved to its satisfaction, something it wants done quickly. However, the council’s; move is not expected to I

cause hardship for Ministry staff. Mr J. N. Mac Gibbon, information officer for the project, said that the town had 52 unoccupied completed houses, but because of the reduced momentum of the Upper Clutha scheme demand for the houses was not strong. j The council threatened in March to cut services to 150 occupied houses because it had not received $26,157 it estimated was due in rates. The threat was withdrawn after Mr Young ordered an investigation, but in spite of this the matter is still not settled. The dispute is over the : Government grant in lieu of ; rates on new project subdivisions. '