Manawatu Herald. TUESDAY, MARCH 16, 1880. THE SHILLING RATE.

Manawatu Herald, Volume II, Issue 58, 16 March 1880, Page 2

Manawatu Herald. TUESDAY, MARCH 16, 1880. THE SHILLING RATE.

Onr Palmerston contemporary, in his issue of Wednesday last, devoted a large quantity of space to the consideration of the shilling rate. As a fair sample of the arguments employed on the question by our contemporary, we quote the following sentence : — " By Mr Kebbell's action, he has enabled the Otaki Highways Board — if they wish— to strike a sixpenny rate, and still get the higher subsidy ; had he not done so, the Otaki Higlnvays Board would either haA*e to strike a shilling rate, or lose -678 195." The aboA T e statements are in direct opposition to Avhafc is correct, and A\*e are surprised at our usually Avell- informed contemporary going so far astray. " The Financial Arrangements Amendment Act, 1877," under which the Highways Boards receive subsidies, says — vide subsection 2 of section 5 : — The subsidies shall be " (2.) To each Road Board a sum equal to one pound for every pound of general rates so re•eived by such Board." How then are the " Otaki Highways Board— if they wish — enabled to strike a sixpenny rate, and still get the higher subsidy?" If the Board strikes a sixpenny rate, the subsidy received by it will be on the amount collected, altogether irrespective of Mr Kebbell's vote for the shilling rate. The statement is therefore quite wrong that " had he (Mr Kebbell) not done so {i.e., voted for the shilling rate), the Otaki Highways Board Avould either ha\ ? e to strike a shilling rate, or lose £78 i9s." It is apparent our contemporary has mixed up the two questions of County subsidies and Road Board subsidies. The two, however, are quite distinct. The law on the former is that there shall be paid " To each County Council a sum equal to one pound for eveiy pound of general rates so received by such Council, or equal to one pound for eveiy pound on the total of the sums so received by all the Road Boards or parts of Road Boards within the County, whicheA r er of such two sums is the greater," whereas the Road Board subsidies, as we have already shown, are based simply on the actual receipts of the respective Road Boards from rates. It will therefore be seen that the basis of the County subsidies is of a tAVofold character, being either the total amount of rates collected by the County Council, or the total amount of rates collected by the various Road Boards, whichever sum is the greater. For instance, we will suppose that the County Council struok a sixpenny rate ; but that the Manchester Highways Board struck a shilling rate, and the Foxton, Manawatu, and Otaki Boards each struck a sixpenny rate. Evidently in this case the County subsidy would not be upon the County rate of sixpence in the £, but on the total of the rates received by all the Road Boards, that amount of course being greater than the receipts for County rates. But this rule does not, as our contemporary supposes, Avork both ways, for although the County derives the benefit of an increased subsidy if the Highways rates are greater than its own, the Boards do not receive any increase of subsidy if the County rates are the greater, their " alloAvance " from the Treasury being pound for pound upon their actual rate receipts. The simple fact therefore is that Mr Kebbell's action in the County Council will not in the slightest degree affect the subsidy payable to the Otaki Highways Board, which will be absolutely based on the rates that body may collect. Another feature worthy of notice is that so far as North Manawatu — we mean the Man* |

Chester Eiding — is concerned, the j whole benefit Mr Kebbell's vote has j conferred upon ii is comprised in the : difiei'ence between the imount derivable from a shilling and a sixpenny rate, for without doubt the Manchester Highways Board will strike the shilling rate, and thus the Manchester Riding will be able to secure the shilling subsidy, whether the Council strike the lower rate or not. If against the advantages* the Manc^fjter Riding will derive fromij^HKi'a .£6OO Mr Kebbell's vote l^Mreen it, we place the hardship, iflKsure and inconvenience which vaWoe caused in the South ManawaiJFßidings by his vote, we think the litter will be found to far outweigli fche former. The Horowhenua Riding is peculiarly situated. The only piece of road it has to maintain is from the Ofcaki river through the township round to the beach. It has no other to maintain, and not eveu Mr Kebbell could assert at the Council meeting that his Riding needed the shilling rate, his argument being that the extra amount might be necessary for the inland road. The Otaki Highways Board is in very much the same position, having scarcely any road to maintain. We therefore hold— and from personal intercourse with many residents of the Horowhenua Riding, we are certain we express their opinion — that a sixpenny rate for both County and Otaki Highways Board would have been amply sufficient for the necessities of Horowhenua Eiding ; and further, speaking generally, we believe the County as a whole would be glad if a sixpenny rate only were struck this year. We have called public attention prominently to this matter, because we think it undesirable that J the incorrect statements of the Manawatu Times should lead the public to suppose that Mr Kebbell has acted in the interests of his constituents. Our contemporary, in his subleader, said: — " We believe it is more than*! likely thaftlie Ofcaki Highways Board will only strike a sixpenny rate, in whicli case, by the County Cou_cil having struck a shilling rate, a subsidy at the rate of one shilling will be ' received from the Government. So it will loe seen that in voting for the higher amount Councillor Kebbell was studying the best interests of the riding he represented, quite inI dependent!}' of Sanson, Carnarvon, or Foxton." To the above we give an unqualified denial, and we imagine the ratepayers of Horowhenua will prefer the statement of sub-sec- ; tion 2, section 5, of " The Financial ' Arrangements Act Amendment Act, 1877," to that of the Manawatu Times. As opposed to our contemporary, that Act distinctly states, quite irrespective ofthe County Council subsidy, that there shall be given as subsidy "To each Road Board a sum equal to one pound for every pound of general rates so received by such Board." « If our contemporary doubts this, enquiry at the Manawatu Highways office will doubtless satisfy him.