BRUNNER BOROUGH

Grey River Argus, 16 March 1944, Page 2

BRUNNER BOROUGH

Rates on State Mines DECISION OF CABINET.

Advice that Cabinet has decided to make an, annual grant of £lOOO to the Brunner Borough. Council in lieu of the payment of rates amounting to £1463 6s 8d on the Wallsend and Dobson mines has been received by the Brunner Town Clerk (Mr. F ; C. Elliott) from the Minister of Mmes (Hon. P. C. Webb). Mr. Webb stated that Cabinet considered that this assistance should be sufficient to maintain the Council’s financial position. In a letter to the Minister dated November 22, the Town Clerk referred to the assurance given by Mr. Webb in September that payment m full of the amount of rates due to the Borough would be provided and forwarded details of the amount required to compensate the Borougn against any loss caused by the taking over by the State of the Wallsend and Dobson collieries. The capital value of the Wallsend mine was £47,065 and the general, hospital, and lighting rates amounted to £627 10s Bd. On the Dobson mine, the capital value of which was £62,685, the rates amounted to £835 16s. Of this total amount of £1463 6s 8d the Borough had already had to pay £457 5s 10d. being the hospital and charitable aid rate on the combined properties. _ I Cabinet’s decision was communicated to the Town Clerk in a letter dated March 6. Mr. Webb stated that he had made a strong recommendation to Cabinet that in equity it should ensure that the Councils financial position would not be adversely affected by the Government taking over the mines. Cabinet, while recognising that some measure of assistance was necessary to enable the Council to continue to function as a unit, was not prepared to authorise an annual grant of an amount equal to that which would have been payable to the Council in rates had not the interests of the two companies been taken over py the State. It agreed that any financial assistance that might be afforded should be limited to an annual grant of £lOOO in lieu of rates, which assistance it considered should be sufficient to maintain the Councils financial position. A grant of £lOOO to be paid annually in lieu of rates was accordingly, approved. . Outlining the factors taken into consideration by Cabinet in arriving at this decision, the Minister stated that the provisions of section 2 of the Rating act exempted the Crown from payment of general rates. The total rates payable on the two properties was £1463 6s 8d out of a total rate struck for the year of £2944 15s. Figures showing the general rate struck for the past six years, together with the balance available m the general account at the end of each year, disclosed that on an average over this period the Council had been ' collecting about £4OO a year more b.M way of general rates than was required to finance expenditure out of the general account. In view of the fact that the Crown was not legally liable for rates on these properties, Cabinet could not agree to the. Crown making a grant of an amount sufficient to maintain the existing position, whereby a surplus was being built up by the Council. It was inferred that all.Borougn works were being maintained and that the surplus was realised after carrying out all necessary work. In view of this position Cabinet was of opinion that the Council should not be afforded the opportunity of building up surplus funds at the expense of the Crown but conceded that the Crown might justifiably be expected to maintain the financial position m the Borough at a reasonable level. It was considered that such a position would be effected by a grant, of £lOOO pavable annually, to which Cabinet had given approval.