RATE SUBSIDIES,

Lake Wakatip Mail, Issue 4047, 3 May 1932, Page 6

RATE SUBSIDIES,

NO RENEWAL THIS' YEAR

SIGNIFICANT OMISSION FROM FINANCE STATEMENT.

Gou»ty Councils were 'given a good financial lift last year by a special subsidy from the Main Highways Account/ enabling their ratepayers to receive a rebate on their current rates ■of 121 per cent. This was authorised ,by the Finance Act No. 4, which set -out clearly that the appropriation from the Highways Fund was to be for the current year and it meant the distribution of £250,000 in relief to county ratepayers. Any criticism from motorists for raiding" the petrol tax receipts was thoroughly drowned by a chorus of approval from the hard-pressed counties, which received a subsidy of 2s- Gd in the £1 on the year’s rate receipts. Based on the average of their rate levies for the preceding three years, the Southland County became entitled to £9OOO subsidy, the Waiteraata County to £6,220, and the Waimari County (Canterbury) to £4OOO, these being the highest on the list. The recent financial statement of the Hon. W. Uownie Stewart 'makes no provision for the renewal of that subsidy during the current year, and members arc becoming interested in the matter; in fact, there is a. suggestion from the Leader of the Opposition that .as considerable lengths of the main highways run through boroughs of a smaller population than GOOO, there should be a special grant to these local authorities. The only reference to the subsidies made by Mr Stewart in his latest statement is the usual Gov-eminent subsidy to local bodies, which amounts to a total of £125,000. This Was taken from the Main Highways Fund last year and the Minister points out that unless that special legislation is renewed the amount will become a liability on the consolidated revenue. It is, however, highly probable that the item will be again made a charge against the Main Highways Fund, but in regard to the larger benefit for the purpose of reducing ratepayers' payments, it has been ascertained that the Government is definitely of the opinion that it cannot undertake this quarter of a 'million liability for the present year, and County Councils seeking to relieve their ratepayers will be obliged to do so by practising economy and thus reducing the next rate demands.