RATE SUBSIDIES

Evening Star, Issue 21081, 19 April 1932, Page 11

RATE SUBSIDIES

NO RENEWAL THIS YEAR SIGNIFICANT OMISSION FROM FINANCE STATEMENT [Fitosi Oun Parliamentary Reporter.] WELLINGTON, April 18. County councils were given a good financial lift last jtpar by a special subsidy from the main highways account, enabling their ratepayers to receive a rebate on the current rates of 12J per cent. This was authorised by the Finance Act (No. 4), which set out clearly that the appropriation from the highways fund was to bo for the current year. It meant the distribution of £250,000 in relief to county ratepayers, and any criticism from motorists for the raiding of the petrol tax receipts was thoroughly drowned by the chorus of approval from the hard-pressed counties which received a subsidy of 2s Cd in the £ on the year’s rate receipts, based on the average of their rate levies for the preceding three years. Southland County became entitled to a £9,000 subsidy, Waitemata £6,200, and Whimairi County (Canterbury) £4,000, these being the highest on the list. In his recent financial statement, Mr Downie Stewart made no provision for a renewal. of this subsidy during the current year, and members are becoming interested in the matter; in fact, thero is a suggestion from the Leader of the Opposition that as s considerable lengths of main highway run through boroughs of a smaller population than 6,000 there should be il special grant to tnese local authorities.

The only reference to subsidies made by Mr Stewart in his latest statement is to tho usual Government subsidy to local bodies, which amounts to a total of £125,000. This was taken from tho main highways fund last year, and the Minister points out that unless that special legislation is renewed the amount will become a liability on the Consolidated revenue. It is, however, highly probable that the item will be again made a charge against the main highways fund, but in regard to the larger benefit for the purpose of reducing ratepayers’ payments it has been ascertained that the Government is definitely of opinion that it cannot undertake this quarter of a million liability for the present year. County councils seeking to relieve their ratepayers will be obliged to do so by practising economy and thus reducing the next rate demands.