Merivale group calls for citizens tax

Press, 4 October 1985, Page 5

Merivale group calls for citizens tax

The Merivale Precinct Society wants the Christchurch City Council to consider changing its rating system to a citizens tax, collected by employers. The present form of rating on property is out of date and morally wrong, according to the society’s written submission to the City Council on the rates issue. The society was given an extension to submit its report. It was presented to the council’s project team on rates last week. A citizens tax was feasible if the computer system being set up for GST was used, the report said. The tax could be collected by the employers. “A code on the tax form and the same coding for each city, borough, etc., would enable the money to be returned to the right city or borough. “This must be considered seriously, for within a city

everybody uses the services which are paid for by the minority, for example, reading, parks, etc. This would see everybody contributing to the true cost of running a city.” The report said that 63,000 Christchurch City ratepayers subsidised the services used by a population of 148,000. Within the existing system of rating, the City Council should introduce a uniform charge on all basic services. It should also increase the rates burden of the industrial and commercial sectors to at least 50 per cent, the report said. A move should also be made to have property valuations done yearly, rather than every five years as at present. The society said it understood from the Valuation Department that this was now possible. “The City Council should look at its present structure to see if it cannot become

more efficient,” the report went on. “We find it hard to believe that such staff numbers are required. If the City wants to run a social welfare department or a labour department it should be funded by central Government, not out of our rates.” The society said it did not believe that rates should be seen as a property tax. “Because rates are to pay for a service, the level of rates should bear some relationship to the level of service required.” Accordingly, there should be a greater move to the user-pays principle, the report said. “Things like the Art Gallery, Museum, and Botanic Gardens are fine assets and ones we do not mind paying for. But things like Queen Elizabeth II Park, childcare centres, etc., should be made to pay their way rather than continue to be a

load on the ratepayer.” The report suggested that the City Council collect more money from the Government, through the petrol tax. The society said that it offered no firm opinions on the rates issues, only a belief that change was needed. It said that many changes could be made within the existing rating framework, but that it was the task of neither the council nor the society to pre-empt any possible changes to the law. “The level of rates for the residents of Merivale, as with other parts of the City, have reached a level which the majority cannot .afford. “Despite the arrogant statements that people should move if they cannot afford to pay, this is not the answer. “The answer must" be a fairer and more equitable rating system.”