TEN PER CENT PENALTY

Hawera Star, Volume L, 7 March 1931, Page 6

TEN PER CENT PENALTY

OPUNAKE HARBOUR RATE BOARD MEMBER’S PROTEST BURDEN! ON RATEPAYERS At> the meeting of the o,punake Harbour Board yesterday, the decision made last month to impose the ten pei cent, penalty on unpaid rates, drew a spirited protest from Mr J. S. Tosxand, who had) been absent when this decision was made. He liad sent in a notice of motion to rescind the i evolution. After considerable discussion the meeting agreed to postpone the imposing penalty, but tile suggestion to rescind and to meet the debenture holders received no support. The notice of motion was as follow : (1) That the resolution passed at the meeting of the board, held on I ebruary l>. deciding to impose the IQ per cent, penality on rates unpaid after March 25, be rescinded; and (2) that the debenture holders be asked to meet the board and discuss the question of reducing the rate of interest during the present depression. Mr Tesland. after offering an apology for absence, from the last meeting, said he had had no greater surprise than Wlieii he saw' the board had decided to uiipose the ten per cent, penalty. The position in the Dominion during the coming period was going to be the hardest ever experienced during the oast 40 years and he considered it a very harsh procedure, likening the action of the, board) to the King of Israel, who said “His father chastised with whips but he would chastise with scorpions.” They were going to add to the burden. He said that if the ratepayers could not pay the ordinary rate they' certainly could not pay the penalty. It, was doubly hard that they would derive no- benefit from the work for which the rate was imposed. Mr Tosdand reviewed the raising of the money for the harbour, first the £3O,QGO loan, which was spent and then a further loan which, ho said, was squandered. The ratepayers had clearly shown that they did not wish the work to be continued, but the money bad been provided by the de : Venture holders and the work lian gone on. Tho-sje Avhose received interest should suffer as well ais the ratepayers. The position would he tlia-t they) would have to- rob the worker of bis wages and the tradesman of liis accounts due in order to pay the interest to the debenture holders, and he '{rued they should let the debenture holders take over the harbour. “The day of the small harbour i:s oast,” he added. “Such harbours should never have been allowed and were never justified.” The fault in Opunaike lay half with the public and half with the board and the debenture holders. Continuing, Mr Tosland said there seemed to ibei no law to protect the man udio toiled from daylight to dark, and he believed that some day they' would rise up and ask why the people, who, were not actually earning their income, should be protected.

The chairman (Mr T. P. Hughson) said the- statements about the board were uncalled for and that no member wished to rob anyone or do anything i detrimental' to the interests of the people. He recognised the difficulties being experienced, -but stated that the ■nterest had to be paid as it became -ine. It was .recognised by- all local bodies- that some of the rates were not paid until the penalty- was threatened, and he added that the board was bound to take action To pay its way. The season had -been hard, but not so hard is some he could remember. Yet in those days people were able to pay their way. It was a lesson in economising for everyone. They must arrange pay ment of interest, and he wa;s prepared to postpone the payment of rates, but not to rescind the motion. The position of the harbour was no fault of the

debenture holders, and the board must protect them, because the people voted for the formation of the harbour.

Mr Pettigrew; said no doubt Air Toslantl felt .strongly -about the matter and used language lie would otherwise not have allowed.

Mr Watson remarked) that Mr Tos!and had asked that the rate bo struck early, so that the (penalty could he sooner imposed. Some disloussion ensued about the legality of the penalty, and the chairman quoted the clause in the Act show■ng that it could be imposed six months and 14 days after (striking the rate, but must be public-fly notified. “‘Debentures! are transferable,” said the chairman. “We do not. know who ue the holders.”

“Stop paying interest,” replied Mr L'osla.nd, “and you; will soon find out.” The clerk said it would be necessary to advertise.

Mr Pettigrew said that already the penalty had had effect and several had mid who generally hung off till the last minute.

In reply to a question, the clerk said tliat the rate of the debenture, was six per cent., and there was a sinking fund 'of 10 per cent. The sum of £4OO had been received last month. Mr Pettigrew maintained) then the debenture holders were not to blame for the harbour and they must be protected; otherwise- the board would break its contract. He added that other local bodies imposed the penalty. Air Tosland said that these bodies gave value for the money sp-sot. -Actually rates could be sued for after 14 days from the date of imposing them. He considered it was not necessary to go to the expense of legal assistance when summonses had to be issued. There were many cases of hardship, and they should not add. a heavier burden in such cases. The County Council had taken up the attitude of holding off because of the hard times. The position of the Opunake harbour was unprecedented in the Dominion and the district v. r as going to be bled to pay a huge sum of money in interest before the debt was repaid—an amount more than the whole payout of the Pihama Dairy CJonupany. “Relieve the burden all you can,” he said, “and whore people "will not pay,] try the court.” Mr Pettigrew said they were doing! only as others had done.

A motion to suspend the imposition of the penalty until April 25 was carried, Air Tosland dissenting. The second portion of Mr Tosland’s notice- of motion lapsed for want of a seconder.