COUNTY SPECIAL RATES.

Matamata Record, Volume XVI, Issue 1443, 20 July 1933, Page 6

COUNTY SPECIAL RATES.

REDUCTIONS LOOKED FOR.

Piako Council’s Decisions.

Special rates for the current year were discussed at length by the Piako County Council at Monday’s meeting with a view to passing on to the ratepayers, where possible, the reduction of 20 per cent, in interest on county loans effected by recent legislation. The following resolutions were passed:—

“ That the special rate to be struck for the ensuing year be reduced by the amount of the 20 per cent, reduction in interest, and that the rate struck be sufficient only to cover fixed charges for the year.”

“ That where the loan account is in credit sufficient to cover interest and sinking fund no rate be struck.” “ That the Waikato Hospital Board rate be gd (an increase of l-16d).” “That a discount of 5 per cent, be allowed on rates paid within 30 days. (This is the maximum allowable by law.)”

Chairman States the Position.

The chairman (Cr. W. C. Kennedy) said a number of ratepayers were of the opinion that a 20 per cent, reduction in special rates was going to take place in all cases. This was not posible. On the £BO,OOO of loans to the county from the State Advances Department there would be no reduction of interest. There could be no reduction for those special rating areas which were behind in their accounts. It was unfair that people who had paid their special rates should get no reduction because others had not paid. One special loan account was £3OOO behind, and so there was no hope of a reduction for the settlers in that area. Numerous ratepayers who had spoken to him seemed under the impression that they would get a 20 per cent, reduction in special rates this year, and he wished to clear up any misapprehensions. The Clerk: Do I understand that the council is of the opinion that these special rate accounts should be paid up before a reduction can be made?

Cr. Lowry’s Comments. Cr. W. R. Lowry: This 20 per cent, reduction should be applied to the whole of the county whether there are defaulters in a rating area or not. These special rates that have been struck and not paid are not a loss; they are on our books. It is our duty to make the defaulters pay. It is not fair that those who have not paid should keep those who have paid from getting the reduction. It is our duty to see that where a man can pay he does pay. We must collect our rates and balance our loan accounts. The rate money is not lost although it is not paid. Therefore I say that every loan account is entitled to a reduction whether in debit or not. The Hungahunga loan account has the largest debit, only half the ratepayers having paid. It is not right that those men who have been paying interest on the loan should not have the benefit of the 20 per cent, reduction that the Government has passed in order to give these people relief. Those Who Do Pay. Cr. W. McLean (Walton): Is there no way of giving this half of the ratepayers a reduction? Cr. W. H. Emett (Manawaru): Whatever the legal position, morally the men who have paid are entitled to reduction. He knew two adjoining properties, equally fertile, but one owner had paid no rates for three years, while the other had paid. Yet the latter would get no reduction because the man over the road . had not paid. After further discussion, Cr. Lowry moved that the 20 per cent, reduction in special rates be given except where the clerk was able to show that the deficit on loan accounts was due to insufficient rates

having been struck to meet the interest. “ The Government has made this 20 per cent, reduction to meet the present difficulty,” added Cr. Lowry. “If we do not hand it on we are not doing our duty.” Effect of Sinking Fund. The Clerk: A point to remember is that a 20 per cent, reduction in interest is not always a 20 per cent, reduction in rates. On some of the loans with 6 per cent, interest there is an 8 per cent, sinking fund. That means a total of 14 per cent, to find annually.

Another point was that on the £BO,OOO of special loans borrowed from the State Advances at 3i or 4 j per cent, there would be no reduction. This was 25 per cent, of the total special loans. Cr. D. Johnson (Waitoa) said that if this motion was carried a special effort would have to be made to get the rates in. If the council carried out the spirit of the legislation the ratepayers would have to do the safne. ' • . .•!

Cr. Stark’s Views.

Cr. W. F. Stark (Morrinsville) said every man was entitled to the 20 per cent, reduction if he could get it, but the resolution proposed would put the clerk in an impossible position. The interest on the special loans would have to be paid out of general rate. The council should give a small reduction, and also take all steps to collect the rates outstanding. Then, next year the council might be able to give the reduction of 20 per cent. Cr. W. McLean (Walton) said many ratepayers had assured him that if there was no reduction they would not pay their rates, as they did not want to pay while others would not.

Cr. Emett remarked that farmers paid a portion on account to business firms and the Power Board, but made no reduction in their rate ac- | counts. j Finally the resolution given above i was agreed to. No Rate in Une Area. It was mentioned that the Kereone i loan account which had to find £250 > a year for interest and sinking fund i was now £4OO in credit. Conse-

quently it wouud not be necessary j this year to collect a special rate, j

. Hospital Board Rate. The clerk stated that £3083 had to be found by means of hospital board rate. Last year, when £3092 was required, the rate was 5-16 d, but there was a deficit of £696 in the cash account. An increase of l-16d to Id was. agreed to. Special Drainage Areas. It was decided that no maintenance rate be struck for the Piakoiti special drainage area; and that for the Norfolk Downs special drainage area rates be struck to cover £lO. >