RURAL LANDS IN BOROUGHS

Dominion, Volume 21, Issue 186, 9 May 1928, Page 12

RURAL LANDS IN BOROUGHS

POSITION AT OTAKI COMMISSION OPENS SITTING VALUER-GENERAL GIVES EVIDENCE Dominion Special Service. Otaki. May S. Questions appertaining to the rating system of the borough of Otaki, to the advisability of abolishing the borough, and to the form of government, that could be substituted, were considered by a commission which was set up to inquire into and report on these matters, and which commenced its sitting to-day.

For some time past- the farming members of the community have contended that their rates were much too high under the borough rating system, and representations were made to the Government, with the result that the Commission now sitting was set up. The Commission consists of Messrs. K. M. Watson, S.M. (Feilding). (chairman), W. T. Strand (Lower Hutt), and W. Nash (Wellington). The Valuation Department was represented by Mr. 1. Brook (Valuer-General), and Mr. G. 1. Shepherd, acting on instructions from the Minister of Native Affairs, watched proceedings with regard to Native rates. Dr. R. A. Shore represented the Health Department, and Mr. M. Luckie (Wellington) appeared for the farming community. and Mr. C. F. Atmore for the Otaki Borough Council.

Questions for Consideration. Fourteen questions are to be considered by the Commission, the main ones being the following:—(1) Is the area now comprising the borough of Otaki suitable for municipal control, or is it desirable that the borough be abolished? (2) If it ii desirable that the borough be abolished, what provisions should be mode for the future control of the area now comprising the borough? (3) If it is not desirable that the borough be abolished, ought any alteration of the boundaries be made either by the exclusion_ot lands from, or the inclusion of lands in, the borough. (4) Is it desirable that the borough be divided into wards? (5) Is it desirable that, for the purpose of the levying of rates by the Borough Council, such lands be valued on a special basis other than the basis of valuation under the Valuation of Lands Act, 1925? (b) Is it desirable that any system of rating other than that now in force in the borough should be in force, and if so, what system, and by what means, should it be adopted ? The question of the exclusion of certain lands from the rating area, and also of varying rates will also be discussed. There will also be raised the question as to whether the Health Department’s requisition to provide certain sanitary works should be given effect to. (In June, 1926, the Health Department requisitioned the Otaki Borough Council to provide, within the district, certain sanitary works. These requirements have not been complied with, and it has been represented to the Government that compliance would produce hardship.) The chairman explained that the time allotted for the presentation of the report had been extended from May 21 until June 21. Valuer-General's Evidence.

Evidence was given by the Valuer-Gen-eral to the effect that an area embracing the town of Otaki and some adjoining land became an independent town district in 1914. On March 4, 1919, a poll was taken on a proposal to adopt the system of rating on unimproved values, and this was carried by a majority of 132 to 44. As the result of a poll taken in January, 1921, Otaki was constituted a borough, the voting being 295 to 117. Early in 1925, certain ratepayers within the borough asked that their lands might be excluded from the borough and included in Horowhenua county. The Borough Council lodged an objection, and, as the result of the appointment of a Commission, certain lands were excluded. Towards the end of 1926, a further area was excluded. Other petitions had been lodged, but no action had been taken so far. . Valuation. Mr. Brook then read from a table, which showed the increases in the valuation of the town district, and the borough, since 1913, and the growth of the population since 1916. Iu 1913 there were 515 assessments, the capital value was £180,812, and the unimproved value &105.714. In 1912 (when the borough was formed) there were 668 assessments, the capital value was £232,213, and the unimproved value £129,249. In that year the unimproved value of (he land in European occupation was £109,276; and in Native occupation, £19.973. In 1922 the capital value was £303,782, and the unimproved value £165.352. In 1926 the capital value was £326,535, and the unimproved value £161,992. In 1927 the capital value was £299,006. and the unimproved value £137,360. The unimproved value of the land in European occupation then was £117,122, and in Native occupation £20,238. It was pointed out that there was a decided drop in the figures for 1926, this being due to certain exclusions. The total net public debt, as at March 31, 1927, was £43,352 Ils. 5d.. partly in Treasury inscribed loans, and partly in loans under the Local Bodies Loans Act. No separate rates, added Mr. Brook, were levied in the borough. The special rating area for each loan was the whole borough, and, therefore, the rates levied on all lands within the borough were in

exact proportion to their unimproved values. , , , ’ After reading from a schedule, Mr. Brooks remarked that it could be seen that the rates levied on the farm lands were exceedingly heavy.

Native Rates. It was stated that Otaki had, within its boundaries, an unusually large number of Native hind owners, and that the Borough Council bad had the common experience of collecting only a small proportion of the rates levied on the Native lands. In fact, the amount collected from the Natives during the last five years was less than four per cent, of the total sum collected. The proportion which the Natives should have paid was fourteen per cent. The Natives, said Mr. Brook, had not stood up to their obligations as the Europeans had done. Both, however, had fail--ed to a certain extent.

Classification Suggested. According to witness, the overrating of certain lands in the Otaki borough could not be wholly attributed to the system of rating. When the loan proposals were brought forward, it must have been apparent that certain farm lands could make but little use of the pro- 1 posed services, and a greater measure of justice could have been given by excluding such lahds from the special rating areas. Mr. Brook intimated that he did not propose to enter into a general discussion on the respective merits of capital value rating and unimproved value rating. He did not think that there was anv best system, for what worked well in one case might be unsuitable in a different set of conditions. However, for boroughs embracing urban and farm lands where there was no withholding of land from purposes of higher utility, the capital value system was the better one. The troubles that the: Commission were investigating, said witness, were, to a great extent, attributable to the levying of special rates for special services on the same basis as general rates, which were, or should have been, restricted to those purposes that were wholly of community value. Mr. Brook recommended that the remedy was to classify the lands in special rating areas, and suggested that, to make the classification scheme a success, the classifiers should know what system of rating was to be adopted, and that if at a future date the system of rating were to be altered, a reclassification should be made. This should be done from time to time to ensure that the incidence of the rating was fair, under the altered circumstances. Provision should also be made for extending the special rating area when it was desirable to do so. Lenders’ Interests. The interests of the lender must be considered, continued the Valuer-General, 'for it would be wrong to remove lands from a special rating area without his permission. Witness, however, could not see. that the lender’s security would be impaired by a classification of the lands which, through the medium of rates, had been pledged as security for a loan. Mr. Brook was of opinion that, if it were possible not to have a reclassification of the special rating areas, the incidence of rating would be altered, and that, short of legislation, nothing could relieve the farmers from the burden from which they were suffering. Witness could see no possibility of the western area being used for building purposes for very many years. It was his considered opinion that the farming areas should never have been included in the borough. Existence of Borough. Mr. Luckie stated that he believed that the borough should never have been formed. Mr. Brook, on the other hand, thought that the borough ought to be able to carry on its own affairs, and that it should not revert to the county. Speaking on the points to be considered, the chairman said it would appear that the suggestion that the borough be divided into wards was impracticable, as a ward must contain at least one thousand people. Asked his opinion on . the question, Mr. Brook said that he could not see that such a division would serve any purpose. The Health Aspect. Dr. R. A. Shore gave evidence concerning the Health Department’s view of the matter, and related how the drainage scheme had failed. He stated that be was not in favour of the installation of septic tanks,, in congested areas, either in Otaki or anywhere else. In answer to Mr. Atmore, he said that the people of Otaki did not appear to suffer from infectious diseases any more than did the people of any other borough. At this stage, proceedings were adjourned until 2 pan. to-morrow.