“IMPROPER PROCEDURE”

Hawera Star, Volume L, 17 February 1931, Page 9

“IMPROPER PROCEDURE”

CRITICISM BY MAYOR CROWN TENANT PROPOSALS DIVERSION OF RATES. “It seems rather a mean thing the Department is trying to work and a most improper procedure. It would he unthinkable in the ease of private concerns',” said the Mayor (Mr E. A. Pacey) at last evening's meeting of the Haavera Borough Council, when correspondence was tabled relating to overtures made by the Public Works Department with respect to premises occupied by the Department of Agriculture and the Education Department. It was considered that the object of the negotiations was, in effect, to divert the rate monies' in respect of the particular properties from the local authority to the Crown.

The correspondence showed' that in October last a letter was received by the council from the Public "Works Department at Stratford inquiring if the Valuation Department had notified tile council of the values in respect of premises leased by the Crown and showing that such premises were exempt from rates as from the commencement of the current rating year.

question of exemption. The premises referred t : Q were those occupied by' the Department of Agriculture and of Education at Hawera, and it was requested that if the premises had been relieved of the rates) owing to the Crown being the occupiers, the department l>e advised l of the amounts. A reply forwarded by the council gave particulars of rates which had been charged up to these departments. A telephone conversation followed between the Public Works engineer for Ore district and the Town Cleric at Hawera. (Mr H. S. Elliott). The engineer considered that properties lotto Government departments would thereby become exempt from'rates, but the Town Clerk intimated the opinion could not bo accepted without legal advice and stated that, in any case, the premises would be liable to- special rating. During the discussion the Town Clerk was informed that letters similar to that forwarded to the Hawera Council were being sent to other local bodies with a view to the Crown approaching the various lessors for rebate of rent as against a decrease in rates due to such properties being assessed to various departments as occupiers.

REDUCTION OF RENT. The owners of the particular premises at Hawera subsequently informed the Town Clerk that they paid the rates themselves—'that the Crown was simply a tenant at a- specified rental and had nothing to do with the rates. A letter received by one of the property owners from the district engineer qf Public Works expressed the assumption that the rates would be lessened as the consequence of such re-assessment and stated : “As this concession is due to the instrumentality of the' Government, I should be pleased to have your assurance that the rental will be reduced by a corresponding amount.” A further letter dated February 1:2 received by the council from the district engineer of Public Works stated 1 : “I have been instructed by my head office to apply to your local authority to have the Crown placed on the rating roll as occupiers in respect of those premises leased to the Agricultural and Education Departments and to have such premises exempt from general rating, such exemption to com- , mence from the current rating year.” | Following a brief dismission the eounI oil decided to place the position before the Prime Minister.