Rate levy unlikely to change

Press, 10 August 1982, Page 1

Rate levy unlikely to change

As a result of the wage freeze, the Christchurch City Council would save $2.21 million in wages in the next 12 months, the Town Clerk. Mr J. H. Gray, told last evening's meeting of the council's policy and finance committee.

However, it is unlikely that Christchurch ratepayers will see any reduction in this year's rate's bill. The council's departmental budgets had been recast, by taking out provisions made for expected wage increases up to June next year, and the total amount transferred to a central budget suspense account was $2,211,502. Of this, $1,320,406 related to rating accounts, he said in an interim report on the implications of the wage-price freeze and the Budget. In May. the council put up its rates by 14.62 per cent to $26,365,006. Since the wage freeze, some local authorities have announced small reductions in rates.

However, according to a legal opinion sought by the Christchurch City Council from the City Solicitor, the council has no power to amend the rates already levied for the.current year. The committee was told that the City Solicitor had been asked his opinion about its ability to modify its rates because of the effect of the wage-freeze regulations.

“If there is an excess of income tax expenditure, the excess would be carried forward to the following financial year and included accordingly in the annual estimates,” the legal opinion said.

"Where the council ' has completed the necessary procedures to make the rate for the 1982-83 financial year,

there is. as far as we can ascertain, no procedure available under the relevant Acts to make any adjustment until the following financial year."

In the light of this, committee members agreed to ask the Minister of Local Government (Mr Highet) to clarify his press statements expressing the hope that local bodies would reduce their rates. The committee also decided to defer making a decision on the question of reducing the 1982-83 rates until after it had canvassed the opinions of the three main local authorities it supports — the Drainage Board, the Transport Board, and the Catchment Board. “If there was to be a reduction in rates, we wouldn't be able to make a refund in the fourth quarter anyway,” Cr Rex Lester said. After considering Mr Gray’s report, committee members agreed that no decision should be made about a rates reduction until the exact effect of the freeze and the Budget on the council's Budget was known. In his report to the committee, Mr Gray said that the taxation on petroleum fuels would have the most significant adverse effect. The additional cost to the council through each department was still being evaluated.

“We will be in a position to report to the next meeting of the policy and finance committee as to the net effect, after taking into account the additional taxes on petroluem fuels, loss of rents through the rent-freeze regulations, and other items requiring adjustment,” Mr Gray said.