RATES AND LOANS

Evening Post, Volume CVI, Issue 33, 8 August 1923, Page 6

RATES AND LOANS

THE CONSOLIDATION

PROPOSALS

STATEMENT BY LEGISLATION

COMMITTEE

EFFECT UPON CITY AND

SUBURBS.

In view of the criticism which has appeared in the Press of the Loans Consolidation Bill, the chairman of the Legislation and Libraries Committee, Councillor J. Burns, supplies the following particulars:—

The Bill is not a measure introduced by the council without due' consideration. That such a Bill would be submitted to the council was one of the main planks used in the negotiations between the city and the outlying districts prior to amalgamation. Those councillors who have publicly criticised the Bill were not members of the council at that time, and probably were not aware that the consolidation of the special rates was a much-discussed subject.

Representatives from the council recently waited on the Parliamentary Local Bills Committee, and there were present also representatives of the Civic League and the Chamber of Commerce. While the latter delegates opposed clause 5, which authorises the raising of loans by special order, they expressed themselves as being in favour of the consolidation of rates. The Chamber of Commerce has since passed a resolution asking for a deletion of the clause which was supported by its representative before the Local Bills Committee. In the columns of the Press there have appeared certain figures purporting to give the increases and decreases of rates under the Bill. These figures are wrong in every particular. Two matters appear to be disturbing the minds of certain sections of the public: —1. The extent to which the rating in various areas of the city will be increased or decreased; (2) the proposal to give the council power to raise certain loans under clause 5 of the Bill. INCREASES AND DECREASES. J The following.- table shows both in amount and rating the increases and decreases :— j Amount. Rate. Increase. £ d. Wellington City .... 9779 40-200 Wadestown ;.. 43 10-200 Kaiwarra Township 105 110-200 Mitchelltown and Taitville 36 107-200 Total ....£9963 Decrease. • . Amount. 1 £ d. Meirose ' 473 13-200 Northland 277 158-200 Kkandallah 1,389 3 127-200 >«~gaio 1206 2 82-200 Kaiwarra, ; 360 3 82-200 Karori 3442 3 79-200 Orangi Kaupapa ... 25 51-200 Miramar. ........ 2791 1 146-200 Total .' £9963 POWER GIVEN TO RAISE LOANS. There was no ulterior motive whatever in promoting clause 5, and it was consiesered by tne City Solicitor to be necessary in consequence of the rating consolidation. The idea was to protect small communities, who would either have to rate themselves, or, in many cases, po without the necessary advantages. This would have meant breaking in on tne principle of the Bill. As, however, the proposal has been attacked, the difficulty may be got over by reducing the authority to the raising of a specified sum in any one year. The city lias been paying out of the general account interest and sinking fund •;n special loans secured over portions of the city. The Audit Department has taken exception to this aJ being contrary to law. and has tagged the bal-ance-sheet. The matter will have to be adjusted, and the proper course seems to be by a consolidation of the rates, otherwise the sixteen special rates now paid out of general account will have to be levied.

fnere are at present thirty-three different rates levied on the ratepayers so the number would be increased to fortynine, and of these additional rates by tar the greater part would be levied on the old city. ■ • PRESENT.METHOD MUST BE ALTERED. It is certain that the present methcd of rating incidence must be altered, as we cannot continue to pay out of general account, interest and sinking fund on the special rates taken exception to by the Controller and Auditor-General. There would b e considerable savings by the consolidation of the rates, for, as already stated, there are thirty-three separate rates levied, necessitating three ledger accounts for each, or -ninety-nine accounts altogether. Each rate requires an account for current rate account, previous year's rate account, and old arrears rate . account, but under the consolidation scheme only three accounts would be required, as against ninety-nine at present. The number of thes'o accounts would be correspondingly increased by the special rates that will have to be levied if the Rates Consolidation Bill is thrown out. The time now occupied in posting, calculating, and compiling the many rate tables is considerable, and the work, too. would be more expeditiously •done-and leas iristakes made owing to the lesser volume of figures to be computed and checked.

. Each ratepayer's property -would be shown on one. rate demand notice, in-' stead of the present method of issuing separate demands for the various districts comprising Greater Wellington. Th<r ß would also be savings in printing and postage and in interest on overdraft by the earlier issue of rate notices. _It should be clear from the foregoing that there will be substantial savings in time and money by the method of ratine proposed in the Kates Consolidation Bill It has been reported that the city is to be "bled," but if reference is made to the Joan schedule of 1920 of £1 708 - 916, it will be seen how little the outI lying districts will share in this hu^e , expenditure, for -which they will be rated. Over the area of nearly 16,----000 acres, approximately 12,000 acres will receive some reduction in rates under the Bill, the rating, with the exception of the hospital and charitable water, and light rates, being on the unimproved value of the land. FURTHER CONSIDERATION BY COMMITTEE. The Local-Bills Committee of the House will further consider the Bill next Tuesday morning at 10 o'clock, the sittmg fo be in Koom X, in the Library .Buildings; and any citizen will be en-' titled to attend, either to support or to object to the proposals of the Bill. TO THE EDITOR. Sir.—l was very much struck with the remarks niide by Councillor H. D • Bennett in your issue of Saturday, and I quite agree with him that the change is a very drastic one. and should be very I seriously thought over nnd debuted by | the niteuaywa o f the city proj>« befsra

I allowing such consolidation to take place. j The rates in the city are quite a. heavy burden now. and are increased nearly every year, and I cannot see the equity of further increasing the burden by £10,000 just for the sole purpose of relieving the suburbs of their responsibilities. I am certain that it was never intended that these suburbs should benefit in this way at the expense of the ratepayers in the city when amalgamation was acceded to. In regard to the "loan proposal" without a poll, I think it. would be a very dangerous weapon to put in the hands of a City Council, for the ratepayers would never know where they were then. I think the Civic League and the Ratepayers' Associations should take these matters up and light them to a logical conclusion on behalf of the "city ratepayers." I am sure, Mr. Editor, that you will give this your attention also, as it is a very drastic measure.—l am, etc., FAIR PLAY. 6th August.