FARM LAND RATES

Evening Post, Volume CXXVI, Issue 80, 1 October 1938, Page 21

FARM LAND RATES

NATIONAL PARTY'S

POLICY

COUNTY COUNCIL SUBSIDIES

(By Telegraph—Press Association.)

INVERCARGILL, Sept. 30. The intention of the National Party partially to derate farm lands was explained by the leader of the party (the Hon. A. Hamilton) in an address at Waikaka. "We have decided to give effect to the resolution passed by county councils at their annual conference that we should alter the basis of county subsidies," said Mr. Hamilton, "At the present time county councils receive ' a subsidy of 5s in the £ on the money collected in rates and spent on roads up to a limit of £2500. The county councils have complained that this is inequitable, as the bigger counties are adversely affected. They have asked the Government to abolish the limit. "We have accepted this principle and will pay a subsidy of £ for £ on the total collections instead of 5s in the £. This will materially assist the county councils to lower rates, which today are fairly heavy. We think the. time has come for the petrol tax to bear a greater share of the cost of maintaining county roads. The higher i subsidy will allow the county councils j partially to derate farm.lands by from 30 to 40 per cent." Mr. Hamilton said he did not believe farm lands should be completely derated, because he considered it preferable for local people to retain control of their own local affairs. RAILWAY FINANCE. The latest returns of railway revenue and expenditure under Labour Ministerial control showed that the railways had ceased to show a profit towards interest charges, and were now becoming a charge on taxation for running costs, declared Mr. Hamilton. He also gave a denial to the complaint of the Minister of Railways that the previous Government had failed to maintain rolling stock in a proper state of repair. In 1937-38 the revenue of the railways was £7,500,000, showing an increase of £1,350,000 on the figure two years previously. In the same period expenditure had increased by £1,768,000 to £7,250,000. Most businesses, said Mr. Hamilton, expected to. make greater profits when they- secured more business, but for every £1300 of extra-business obtained by- the railways the cost had been £1700. In the.years before the Labour Government took; office the usual expenditure for each £100 of revenue had beeh'; £88./ This; had gradually gone up; to; £96 in the last financial year. For the first four months of the present -financial year, to July 23, 1938, revenue was £2,322,000, and eXnenditure £2,377,000. All revenue had" been absorbed by expenditure, and there was a shortage of £55,000 to be found by the taxpayers. Who was going to pay the interest on the railways, he asked; For every £ 100 earned by the Department the cost of management was £102 Bs. EFFECT ON TAXATION. "If the people of New Zealand are not interested or alarmed about the management of the railways they ought to be," he said. "This position is the result of Ministerial Labour control. It is no wonder that heavy taxation is required. In the past the railways have found a substantial amount for interest. Now they are not even paying management expenses." The Minister of Railways had always said that the last Government had left the rolling stock in a dilapidated condition, and that more expenditure had been required to bring it up to a proper state of repair. The facts showed that the previous Government had neglected neither rolling stock rior track. In 1935 the number of engine repairs for 100,000 engine miles was 2.93 and in 1938 it was 2.42. The number of cars and vans repaired on the same basis was 8.68 in 1935 and 8.45 iri 1938, while the number of wagons repaired was 12.33 in 1935 ahd 10.54 in 1938. There had been an absence of complaints about the condition of rolling stock in 1935. The General Manager was required to certify as to the condition of the rolling stock each year, and he had not said it was not efficient In 1935.