OVERDUE RATES.

Horowhenua Chronicle, 18 February 1931, Page 7

OVERDUE RATES.

THE PROBLEM OF HARDSHIP. COUNTY COUNCIL IMPOSES USUAL PENALTY. t BUT SEEKS AUTHORITY FOR A GRADUATED SCALE. A lengthy debate took place at ■the Horowhenua County Council meeting on Saturday as to the wis4om or otherwse of imposing the 10 per cent, penalty on overdue Tates this year, in view of farmers difficulties; but eventually the usual ' motion to make the levy was passed, the Chairman being of opinion ■that thle Council had power to remit this charge in cases of undue hardship. A new departure was taken in the tabling of a motion, which was carried, to seek legislative authority for charging graduated amounts as penalties over a plsriod of three months beyond the overdue date. The mover of this was Cr. Jensen. In moving that, under Section 76 of the Eating Act, a charge of 10 per -cent, be added to all rates remaining unpaid six months and 14 days from -the date of demand, the Chairman (Mr, <G. A. Monk) said he knew that there was a feeling—and it was justified— that there were cases in which the ‘Council should not collect the 10 per cent. However, there was another aspect of the matter. He had met a good many ratepayers in the last month •or two who had said, ‘ 1 When is the 10 per cent, going on 1 ? We' don’t pay if it is going on.” The Council must, in all fairness to the ratepayers of the whole County, put the 10 per cent. on. He understood that legislation was proposed whereby this charge might be k Temitted; but he thought that theie was already provision for that where it could be proved that people were not in a position to pay it, the method being not to collect it. The Council would find that, if the 10 per cent, was mot imposed, a lot of rates would not ■be collected at the time when they should be. A useful motion had been laid before him by Cr. Jensen; that was, that instead of placing the 10 per cent, on in one sum, it should bo .applied in graduated amounts. The terms of the motion were: — “That it be a recommendation to the Counties Association or the Minister of Internal Affairs that Keeton 76 of the Eating Act be amended to j provide fox- a gx-aduatecl additional charge to be made on overdue rates .as follows:—For the first month 5 per cent., for the second month per cent., and for the third month 1 10 per, cent,, after the expiration of six months and 14 days from the date of demand.” Cr. Eyder seconded the chairman s mxotion, and said he thought that the 'Council was compelled to make the 10 per cent, charge. The Chairman: No. Cr. Gimblett said that the late Sir .John Salmond had given a ruling on "this point. As he read it, a Council f ' .might refrain from passing the resolu" tion imposing the 10 per cent., but it was nevertheless compelled by law to collect the 10 per cent. If that was I so, it was going to put a good many •of the ratepayers of this County in a very awkward position. Parliament would meet on March 11th, and lie ■of opinion that this was a question that would be dealt with by it. From 3iis point of view, the fairest way was to give the Council the right to deal with each case on its merits. If a farmer really could not pay, it would not be human to try to make him pay. Ihe man who could pay and would not pay was the maxi they were after. If the •Council did not do something towards ■enforcing the payment of rates, the 1 members of that particular class would themselves of any excuse to hang ■on to their money. He asked if it would be possible to defer the imposition of the penalty until the Govern--4 ment indicated whether it was going to give counties the right to deal with the eases on their merits. The Chairman: There is an indication in this morning’s Press that they , propose to deal wth the matter this :session. Cr. Gimblett: It is clearly set out in the law that a Council may impose the penalty. . . Cr. Catley: From our point of view, f to protect the finance of the Council, we are almost bound to impose it. I would like to extend it for a reasonable period. I would be more inclinj -ed to support that than to make it * anandatory at once. The Chairman; If wo do this, it does not take away our power to remit in .case of hardship. Cr. Gimblett: I read it the other way 'in Sir John Salmond’s opinion. The Chairman; It will mean that you will have~*a heavier writing-off. Cr. Gimblett: The way I look at it is that, if we pass that resolution, our ‘hands are tied. Cr. Barber: It becomes a rate. The Chairman; Yes, but you can write ;a rate off. . Cr. Colquhoun asked if it would be sof any benefit if the Council gave a ■discount. The Chairman: Too late. The first, two months is the principle of a dis■count. Eleven months of the financial Vear have gone. They have had eleven months of the services of the County without having paid anything towards it We render a direct social service •to this community. We give good roads /keep open communication to them, and I .help to supply a hospital service which is available to the County; and tor that reason I feel that we have as :mueh right to collect our rates as a ! .man his interest. * Cr. Gimblett: He is not collecting it. . The Chairman: Then it becomes a •case of hardship, and can bo dealt by the Council on its merits. Cr. Catley: Who is going to determine whether it is hardship or not? ; The Chairman: The, Council, 1 suppose. Most of the counties have profitably imposed their 10 per cent., and 0L take it that legislation will be ’brought down giving them authority to collect of remit it. Cr. Gimblett; Unless I had assurance ■ it|at the /Government would give the

right to waive that 10 per cent., I could not support the resolution. The Chairman read from the Act to show that, on th e petition of any person pleading for remission of rates through certain causes, the local authority might, after suitable inquiry, remit the payment of rates by the petitioner, either wholly or in part, and for such time as the local authority thought fit, “The rate is not collected,” the Chairman added, “and eventually it is written off.” Cr. Jensen: I think that 10 per cent, in times like these is pretty hard, and for that reason I would like to move the motion, or amendment, that we apply to the Minister for power to make graduated charges. That would enable us later to bring some pressure to bear, not perhaps on those who have not got the money, but on those who have tried to hang out as long as they can. It will enable us to get the subsidy on our rates, which is considerable. We have perhaps got the power that the Chairman mentions, but I am very much afraid that the Council will sit here for a long time to investigate as to who is hard up. I would not like to undertake the job of finding out who is really entitled to have an extension of have his rates remitted. After all,;'ui«'h.en we struck our rates we tried get through with as little as possible)’' to make the rate as light as possible.' The year has ended and the rates have been spent —and what are we going to do it we don’t get them? How are we going to carry on? In a good many other instances there is the graduated scale, and I think it is a very fair scale. Provided that we could get the necessary power, we would be very wise in adopting it. The Chairman: I am quite prepared to support that;, but I cannot take it as an amendment to this motion. Cr. Colquhoun suggested holding over the Chairman’s motion for a month. The Chairman opposed this course, saying that it would only deplete the Council’s resources. Cr. Catley moved as an amendment, ai\d Cr. Gimblett seconded, that the notice imposing the 10 per cent, penalty be postponed till the March meeting; but after further discussion the amendment was withdrawn. The Chairman’s motion, to impose the penalty, was seconded by Cr. Eyder, and carried. The Council then considered Cr, Jensen’s motion for a graduated impost, this being seconded by the Chairman, The mover said he had discussed the proposal with the County Click, who had assured him that the clerical staff were quite prepared to carry out the sliding scale if the Government saw fit to fall in with the proposal. There was no doubt in the mover’s mind that, unless the Council had some measure of this sort, it would not be very easy for it to get the rates in for this year. The motion was carried.