CROWN RATE LIABILITY

Evening Post, Volume CXVII, Issue 146, 22 June 1934, Page 8

CROWN RATE LIABILITY

LTlie Question' 6f Crown liabilily for local- rates' is, raised' in a way that cannot'be evaded by the statement published la^t night of the Lower Hutt. Borough Council's losses. Over a period of fou^ yeais and three months the boiough has suffered a not loss of over ,£20,000 through properties' rcveiting to the State Advances Office and the Crown Lands , Department. Tlie Minister of Finance has declined a* request for amendment of the piesenl law which absolves the Government fiom payment of rate*. No reasons axe given, and if theic aie special leasons justifying this lefusal they should be stated. As the case appears now there is discrimination between-the Crown and the private owner of pioperty, and, as the local body cannot maintain its seivices wilh'oul levenue, the piivate owner must make good the loss. Doubtless it will be said that the Crown is a heavy loser .before it resumes possession, of the properties, and that it has inclined such losses by refraining fiom harsh iieatment of its tenants. But this applies also to many piivate owners of piopeity. With unfortunate tenants or^puichasers they give every possible consideration; but this is not accepted as an excuse for non-payment of'rates. "The Crown's freedom from payment of rates has been maintained as a principle from a time when such \entures in housing were nol known. A? the practice has been alteied by the entr)\of the' Crown intothe housing business, so the law should'be amended. Otherwise1 the Crown's competition, being carried on without risk of all the losses facing the private landlord, must tend to be unfair. There is a further strong reason against the present practice. The Government houses are not. evenly distributed through all boroughs and counties. This means that one or two boroughs—Lower Hutt is a conspicuous instance^—are carrying a burden, which is properly chargeable to the whole community. It cannot even be. urged that the borough lias had relief to offset the .present loss. If a-large city had houses provided by the Government for its less fortunate citizens it might be asked to forgo rates. But many of the settlers'occupying the Crown properties m Lower Hutt Went there from other districts.