RATE ARREARS LOST

Grey River Argus, 11 June 1935, Page 5

RATE ARREARS LOST

POSITION AT GISBORNE Crown as Mortgagee GISBORNE. ,Jnu<- s - The fact that more than half th' rates* written off by the Gisborne Borough Council as irrecoverable are it respect of properties mortgaged t< Crown lending institutions was men tinned by Air N. 11. Bull during a <lis cussion of the estimates at a meet inof the Council. Mr Bull had been referring to th* rapid increase in rates* in recent years and quoted the accumulation of arrearas one of the cases. “A serious a< poet,’’ he said, “is the position regarding arrears <>F rates', which amount to £15,700. Last year certain rates were writ it on off by the Council as irrecoverable, and of these it is found that 52 per cent, were in respect of properties mortgaged to Crown lending institutions. /This create.*’ a very unfair position, because had the prop<rties mortgaged to the Crown been mortgaged to private individuals, the whole amount written off could have been recovered from the mortgagees, or the securities could have been sold am] the investment?' wiped out if they failed to pay the rates demanded. “Dealing with the position of arrears g( nerally. it is impossible, without considerable research, to obtain particulars as to (he proportion attributable to properties■ in which the Crown i.*» interested, but it is reasonable to assume that t *•*• proportion wi.ll 1 c approximately the -ame as in the case of rates written off. It would therefore appear that preferential treatment to State institutions has depleted or will deplete 'the receipts of the Council by about £B.OOO. The result of this must be that the balance of the ratepayers must bear the burden of increased rates.”