UNABLE TO COLLECT RATES.

Matamata Record, Volume XVI, Issue 1446, 31 July 1933, Page 6

UNABLE TO COLLECT RATES.

FROM CROWN MORTGAGORS Drainage Board’s Protest. State Departments Criticised. In common with other local bodies in New Zealand, the Taupiri Drainage and River Board has suffered considerable .financial embarrassment because it has been unable to collect rates from Crown mortgagors.

At its July meeting the hoard decided to send a statement on this subject to the members for the district and to the Ministers of the Crown urging the need for legislation or regulations which shall:

“ Make the Crown, as mortgagee, liable for rates; to secure the application of moneys from orders on farm product for reduction of local body rates in priority to any reduction of State, mortgages.” Extra Burden on Ratepayers. This problem chiefly affects that part of the board’s area which was formerly the Mangawara River District, in respect to which there is a total of £940 accumulation of arrears to date and a prospect of an annual deficiency of about £IBO. To pay interest and sinking fund the board has to collect £1430 annually from this area, so that the irrecoverable rates have had to be made up from payments by those ratepayers who do not possess the immunity of those who are Crown mortgagors. “The Taupiri board is of opinion,” says the board’s statement, “ that the position created in this manner is intollerable and that legislation should be brought about to rectify the position by spreading this burden over the Dominion. It considers that in equity this should be done. The Government has only to look to the Old Country for a lead in this matter. There it will find that the principle of State immunity for rates has been long disregarded. Crown’s Immunity From Rates. “ Much has been made,” adds the board’s statement, “of the assistance that has been given to farmers through direct assistance and by i eductions of interest to local bodies. But this assistance is largely nullified by the unjust imposition of extra rating which must follow from the Crown’s immunity from rates. “ This situation is made worse by the very State departments which enjoy this immunity. The State Advances Department and the Lands Department obtain orders on the cream supplies of dairyfarmers, and out of the proceeds take funds for not only their interest, but also amounts in reduction of principal. Words fail to express the indignation of this board at such disregard of the obvious priority of the rating liability during the present difficult state of the Dominion.”