RATING ON UNIMPROVED VALUE.

Dominion, Volume 1, Issue 50, 22 November 1907, Page 5

RATING ON UNIMPROVED VALUE.

IS A CHANGE DESIRABLE?r A . representative of TiiE DosnKiON interviewed a well-known citizen of over a quarter of ,k century's residence in. Wellington, and submitted to jiim the-statements alleged to hare been made by the Hon. T. K. Macdonaid; M.I/.C, when in Christchurch, condemnatory of ithe present" system of rating 'on iinimproved vnluos. . ' '\. If will be rcniohibored that Mr. Macdonaid is s'tatod to have expressed the opinion that tho system, so far.'as Wellington .was• concerned, had proved a curso instead of a blessing, inasmuch: as. it had been destructive of .tho amenities-which helped to make a city beautiful, such as gardens .and other pleasant surroundings; that.some;men found that the . rates they pay on their gardens wore equal to the rent of a large dwelling-, house, causing a'tendency towards a subdivision of lands laid out in gardens. . I i"les," said the citizen referred to, "I havo seen.that, and L heartily endorso every word of it. But. Mr. Macdonaid has only touched .the fringe of the evil broucht about by the.existing system of civic rating in Wellington. He might have added that its incidence is, in a very large number of cases, and- notably those of persons least able to bear, it, such as widows and elderly people in peoi: circumstances, riiost unjusfand unequal, mid, indeed, in many other ways, he might hsvo condemned it." •-.. ... "Do yon mind stating in what other ways you ..regard the system-as harmful?" -'■Not in tho least. The former system, as you will remember, was" based on the ronting value of the tenement or tenements of the land owned. This' was manifestly fair, b'ecauwj it a house was in a bad state of repair, through age or neglect, no landlord wonld get more rent for it than it was worth as a dwelling-place,' and jthe owner had an incentive to :lobk after his property and keep it in good condition ami repair in order to reooive. a fair rental for it. 'Now that tho

rating'is-based on the value of the sitofrontage, which is being continually artifici-' ally boqm.ed, consequent rapid. rising of rates payable, tho landlord is forced to charge , an exorbitant rentfor what ho'knows to ho'an absolutely inadequate tenement for such a rental, : and further, 'finds himself with less margin- of funds to execute tho periodical necessary repairs, painting, otc. Tho result is deteriorating tenements,' but no : corresponding decrease in rent to the unfortunate tenant, wnVmust have house accommodation ■somehow or'other."

''But, of course, you understand that it is claimed for the present system that it has put an end to the 'vacant section, , formerly nbt,'fated, and therefore kept lying waste till, land values, rqs'o through surrounding occupied sections, and so has put a spoke in the, wheel of the land speculator." ■:' ! Yes, in.large measure it has caused these vacant, sections, held for speculative' purposes; to bo built upon; But it was.not necessary to alter the old form of rating, to accomplish a detail such as .'that. ' A now clause in the Municipal Corporations Act, giving power to rate vacant sections, within Boroughs, , such rating' to bo progressive in amount, at periods, 'say, of two years' until tHese'. , sections were biiilt upon, the rates then-falling into.line-' with' the system pre-i railing', would'have had,-tho desired effect, and should not. have 1 been difficult of accomplishment. As for putting- a , spoke in th'p/Jan'd-speculator's wheel, from, my point of'view the present rating system has played directly into the hands of that individual, ,ana: also, those of the land agent." "Will .you,state your other objections to the system?" . . '■■.■• ','1 was'going to say that one of the greatest evils following in its traiii has been the total breaking-up in thousands of .leases, of .the.-home) :-0r..-family circle, life in the city and suburbs. This has-.been brought about by the introduction' into" the household of the lodger, , or'lodgers,- with a view' to'■■ enabling tho high :rents prevailing for,'dwellings to be paid. ;Direotly the lodger: enters, no matter hovr amiable'and .ostiinable 'as an indivKjual he.or, she may be, the sanctity, the privacy, and the influence of the family me and the homoi circle are so seriously mterferod with as to be practically destroyed. And mind you, from the. point of X l 6?. of the social and moral'outlook of the community, this is a very momentous thing." Again, and Mr. Macdbnald has hinted at this point, there .is tho evil of close-building,, leaving but little, air-spacp; round .dwellingsthousands- of these, pthorwise substantially and well-erected, -have not sufficient backyard accommodation in which to swing the proverbial cat.: I read in the Labour' Leader the other day the ; following comment :-r Houses are riot built, for comfort and convenience, but-to put as many as possible ■on a given site, , .: The writer is referring to the workers' class of. dwelling", ,of. course It.is a true.indictment, and is a direct-re-sult of rating on r unimproved vaiues. The wof king-class were 'told, that this system was to; be something of- a .benefit to ; theni.- Well they, can.-now judge for themselves. I-''soy' unhesitatingly,- , it, has . proved, niost disastrous for .the housing, of themselves and th'eir families." •'•'. : ■ '.-! ! ■ ■ ' ■

Coming to thefcity proper, one observes another evil—an .architectural one—fraught with.great possible; danger, as the experience ot .? an ' l'rancisco -has shown.' One sees erected, and beingi erected, on'small sites, towering: buildings of stono, brick, and iron ?P.:. t ? : .seyon ) ■_eight, .and nine ■stories,-in height, and. this' in a city- liable to earthquakes of known. arid . unknown' seventy Irudencb would .forbid'any building in Wellington being- m'oi'.e. than four : stories high but the, site value,.ever rising, mostly artificially; compels the owner, who has to pay fates and taxes to work: his.limited holding for all it.is. worth. Some, day or other it will bo s lown what a serious menace to tho busy tJirqngs in the city .these high buildings are.-' , JJo you think- there is a very general desire to revort to the old syetom of rating?" , ~'ln iny opinion,, there is a very;widespread dissatisfaction with the .incidence.'of tlioprcs.°"t, system, nnd.,a very, largo' number of citizfcns who are quite disillusioned as to the benefits claimed for it." •' '" .

■■'■', n '}' if t'je previous, system" were again adopted, .would -thero be any. mitigation of these evils, you ascribe to . the present, rating? ' ■. ' ■ ■ .

. W.conrse, -a great deal of the harm dono is now irreparable." My opinion, however, is that the.change would almost at once workin, the direction of reducing the. fictitious values of.tbwn. arid suburban land to. mow rationa proportions, Theii when the present heavy loans for the city's and'suburbs'■ progressive needs had,been paid'off, and the greater water supply scheme carried out and paid for, gradually but surely, even supposing no other causes were at work, such as ieanJ ytfars instead of fat ones; rents wOukl steadik come down.. ' . ■ • ■ : " Thelarge . majority of landlords are n body of men, and merely look for a reasonable of money, invested, if the tenant is now exploited you must blame the. reckless piling on, of .land values and rates and taxes for it, not the propertvowner. I should like to say that I have sketched to you the ovils I coritenj that the rating,on unimproved value is re-' Hponeiblc.for.- It is a large subject, and would take a good-sized volume to contain detailed exposition and argument."