Rates problems

Press, 27 March 1986, Page 12

Rates problems

Sir,—The Mayor of Christchurch, Sir Hamish Hay, again says the rates problem was not the council’s making and that his council did what was sanctioned by law. He does not say that other lawful options permitted rating in a more even manner. Does he deny that these options were known to the council and that the Valuation Department told the council of the uneven impact that their new valuations would have on parts of the city? The council chose to do nothing, and instead blames the Government. One of the options is to be implemented this year and capital value rating considered later. This will help, but the council has a moral obligation to waive the penalties imposed on those who withheld part of their rates because of the very harsh increases of 66 to 100 per cent. Would the Mayor also say why rating should not be by ward? This is also permitted by law. — Yours, etc.,

A. W. DIREEN. January 25, 1986.

[The Mayor of Christchurch, Sir Hamish Hay, replies: “While the council was aware of the general impact which was likely from the new valuations on various parts of the city, the extremities which actually took place were not obvious. The council considered the various options open to it in respect of changes to the rating system, and while some minor changes were made because of concern at the effects likely 4n other areas of the city, no major changes were implemented for effect in the 1985-86 rating year. The council believes that it has a moral obligation to those who have paid their rates on time not to waive the 10 per cent penalty, which is charged according to statutory provisions. By far the vast majority of ratepayers are law-abiding and have paid their rates on time and even many of those who protested by withholding payment have now cleared their outstanding rates and the penalties incurred also. Existing legislation does not allow the Christchurch City Council to implement a ward system of rating as applied in the Waimairi District Council. Although this could be implemented to some degree using differential rating by wards, this is not considered to be in the wider interests of the community.”]