REFUND OF RATES

Gisborne Times, Volume LXXXII, Issue 12529, 15 April 1935, Page 4

REFUND OF RATES

HARBOR BOARD’S INQUIRIES

DOES CIRCULAR LIAXIT ACT? SUM OF £3OOO INVOLVED. Approximately £3OOO is involved in a rating problem which is at present the subject of negotiation between the Gisborne Harbour Board and the Minister of Finance. The point at issue is a clashing between the terms of a Treasury circular and the wording of Section 28 of the Finance. Act No. 3 (1934). The Treasury circular, issued on November 21 last, in the form of a memorandum to local authorities, purported to explain briefly certain sections of the Finance Act, No. 3 (1934) of particular interest to local bodies. This circular stated that section 28, authorising grants to certain local authorities to be applied in relief of ratepayers iff respect of land used for farming purposes, applied only to a, county council, a road board whose district is in a bounty in which the Counties Act, Is2o, I s J ' n toll force, any borough council, any town board whose district does not form part of a county, and any road board in the County of Eden. It further stated that every such local authority would he paid a subsidy by the Government equal to 12£ per cent, of/the total amount of the rates mode and levied for 193U35, on land used for farming purposes. Some time later a study of the Act disclosed that there was nothing in Section 28 excluding Harbor boards from the benefit of the subsidy, it being specifically laid down that “every local authority” was so entitled. The secretary of the Treasury was communicated with and this brought a reply that the legislation applied only to the authorities mentioned in the circular. The board also secured a legal opinion on the matter and then” despatched the following telegram to the Minister for Finance: ° “Owing to circular memorandum November 21, from Treasury, being erroneous, Gisborne Harbour did not make application under Finance Art No. 3 for subsidy of 12£ per cent, of rates on farm lands. Circular states subsidy may be claimed only by county councils, road boards, borough councils, and town boards, wheieas Act. provides ever? local authority that Tubs levied rates . on rural lands may apply for subsidy. Board has only just discovered ’Treasury circular incorrect; approximate]. 1 * C3OOO involved in rates payable by farmers in Gisborne harbor district. Board would be greatly gratified if you could rectify matters before leaving New Zealand.” A further message conveying the purport of the legal opinion, ihat the circular could have no bearing on the Act, was also forwarded. • In replv the Minister intimated that the circular had correctly stated the position, the matter of harbor boards, drainage boards, river boards and other similar institutions having been brought up in the committee stage of discussion on the Bill in Parliament, and members having been informed that rates levied by such local bodies would not be included in the subsidy provision. The Minister regretted that he was unable to re-open the matter. Mr. J. Tombleson, chairman of the board, then telegraphed to the Minister as follows: “Many thanks your attention given our inquiries regarding subsidy, but board adheres legal position clear, and can only lie altered by Parliament: The reply to this message was in the following terms: “Your telegram received, but unable to depart from view expressed m my telegram of 9th inst. In any tose, payments after March 31 aie noi authorised.” The matter will be discussed fully at the board's next meeting.