RATES ON CROWN LANDS

Hawera Star, Volume LIII, 10 March 1934, Page 5

RATES ON CROWN LANDS

LOCAL BODIES SEEK AID. DEPUTATIONS TO MR. RANSOM. PETROL TAX FOR BACK R-OADS. The opinion that- more of the petrol tax funds should bo diverted for expenditure on back country roads tv as expressed by the Minister of Lands, the Hon. E - . A. Ransom, in reply to deputations which waited-upon him at iHawcra and Patea yesterday concerning the non-collection of rates on properties owned by the Crown. The Minister said he -appreciated the .difficulties of local bodies, and the Department would assist wnere possible. The Government -could not, however, accept responsibility for rates, because if it did so it would do necessary to raise money by taxation. Mr J. B. (Murdoch, chairman of the Hawera County Council, said the position was causing some concern. A considerable area of land in the county •had gone back to the Crown, and there were eight cases in whicn the rates had been defaulted and where the Crown held a first mortgage. In one case the Lands Department had a 100 per cent, order on the tenant’s wool cheque. In another instance four years’ rates totalling £G4, were outstanding and the occupier of the land was now bankrupt. -Several’ other case were cited, showing various amounts owed in rates over varying periods. The position was becoming more acute each year, said Mr Murdoch, and if the council could not secure some relief it might mean that roads in some of the back districts would have to be neglected. It seemed reasonable to -expect that if the Department was receiving interest on money advanced the council should receive a. share of any surplus before payments were made on capital. The county clerk, Mr J. W. Harding, detailed a number of instances in which considerable amounts were owing for rates on Crown property. Mr Ransom said he ’appreciated the position of local bodies. However, if the Grown accepted liability for rates the burden would be enormous and would have to be met by general taxation. The question was who should bear such taxation, and on what basis it could Vic arranged. It might, however, be possible to divert some of the petrol tax fund to local bodies wno wore affected by such cases. Personally, he thought,that the main roads in New Zealand were good enough for the needs of the public for several years, and that more of the petrol tax funds should be spent in- back areas. The Department was at all times prepared to discuss the position with local bodies and would assist wherever possible.

Similar representations were made to the Minister at Patoa.

Mr A. T. Christensen, on behalf of the Pa tea Harbour Board, said the board had great difficulty in getting rates from Crown property, and the borough council was similarly affected. The Crown would not recognise liability for rates and the position was most •acute. Last year one body in Patoa had had to write off nearly £2OO in rates on Crown land.

Mr W. G. Belton, chairman of the Patoa County Council, also mentioned the position of Crown tenants in the county on whose properties rates could not he collected.

The Minister said a very big question was opened up, because if the Government had to meet toll rates the money would have to be raised in revenue of one sort or another. The Department, did not demand that all revenue from a Crown property should be used firstly to meet Government obligations, but was quite prepared to accept a pro rata distribution if necessary.