Rates plan 'tidy’ solution

Press, 25 October 1982, Page 6

Rates plan 'tidy’ solution

PA Auckland The uniform general rate provided in legislation introduced in Parliament on Friday would be a "tidy" solution to the rating system, says the president of the Municpal Association. Mr A. F. Thomas. The measure seemed to go halfway towards a fair spread of the cost of local government. Mr Thomas said yesterday. Clause nine of the Local Government Amendment Bill (N 0.2 enables local bodies to levy a uniform general

charge of up to $l5O on each property, regardless . of its valuation. Mr Thomas, the Mayor of Takapuna City, estimated that within his council’s annual rate income of $ll million about $4.5 million could be collected from the uniform rate proposed. Opposition members attacked the bill in Parliament as elitist legislation which would assist only owners of expensive property. Mr Thomas said: “A few substantial ratepayers will . pay less, and there will be modest increases for those at

the lower end of the socioeconomic scale — but there is another side to it." The imposition of high rates on a few properties had the effect of reducing council services generally. It was the few high individual rates which attracted publicity, he said, and sensitive councils would cut back services to keep them down. Mr Thomas said it was important to emphasise that the proposed uniform rate was merely being made available: it was up to each council whether it was

adopted. Some councils were already trying to spread the ' rating burdon using differential ratings systems, said Mr Thomas.' They imposed a - higher rate on lower-valued areas and a lower rate on high-valued areas. “I do not believe it is a proper use of differential rating, but a lot are doing it." he said. Mr Thomas said that the system provided in the bill, now before a select committee. would be a tidier solution.