Reduction in Rates

Horowhenua Chronicle, 7 October 1931, Page 7

Reduction in Rates

“Apart from interest, the principal items in the farmers’ fixed charges are rates and taxes. Rates in particular are a heavy burden under present conditions. These rates have been heavily increased by the cost of road improvements and maintenance through the use of the roads by motor traffic. Quite recently the Main Highways Board increased the subsidy to local bodies for the maintenance of highways from a basis of £2 for £1 to £3 for £1 as from April 1 last, thereby assuming a greater proportion of the burden of highways. An examination of the finances of the highways revenue fund shows that, after providing for all the normal requirements for maintenance, interest, sinking fund and the subsidies on rates to local authorities, the probable revenue. receipts for the year from the existing taxes and license together with the balance carried forward on April 1 last, will provide a balance at the end of Vhe year of not less than £250,000. “This balance, or the greater-part of it, the Highways Board would ' normally hare transferred to highways construction, hut under present circumstances it is considered that it would he better to curtail construction work somewhat for this year and apply the £250,000 hy way of a special subsidy to rural local authorities in relief of the existing burden of rates.

“The basis on which the amount will be distributed has not yet been finalised, but will be announced later when the necessary empowering legislation is brought down. These measures wil give some relief from the burden of rates..

“As a means of providing more permanent and. far-reaching relief the Government proposes to proceed with the inquiry by Royal Commission into the possibilities of national economy through the amalgamation of local authorities and a general overhaul and reorganisation of the whole system of local government.