RATING PROBLEMS

Manawatu Standard, Volume XLVIII, Issue 196, 18 July 1928, Page 8

RATING PROBLEMS

FURTHER SUGGESTIONS. ROAD USERS TO PAY. ; (Special to “Standard.”) FEILDING, July 18. A scheme of rating which ho claimed Ti-ns more or less in use in England was put before the Rating Commission which is at present sitting in Feilding by Mr F. Page, farmer, of Woodville, yesterday, the ideas presenting a somewhat novel view in that they called upon the Government to reimburse the local authorities for their taxation exemptions. “I don’t think it necessary for me to go into details to show that the present systems of rating are unjust and create excessive hardship upon farmers who happen to have land within borough boundaries,” said Mr Page, in opening his evidence. “You will no doubt have plenty of evidence to show that the present systems of ratings are not only unjust but impracticable and even wicked,” he added. Continuing, ho stated that in practically all cases of severonco farmers were found with their noses to the grindstone, paying for heavy local taxation to provide municipal services from which they received practically no benefit and in this respect Mr Page claimed that' the unimproved system of rating was not practicable with justico in small towns. The farmers found a large- portion of tho rate money while a handful of business people in the centro of tho town whero tho money was spent got th benefit. Mr Pago then submitted the following system of rating which he stated was more or less in vogue in England and which ho claimed would be a panacea for the whole of Now Zealand on tho basis that tho users would pay: (1) All residential and business premises, whether situated in town or country, to be rated on their capital value. (2) All vacant building sections at half above rate. (3) All special rates to be levied on above basis. Provided no special rate shall be chargeable on any premises that cannot participate in such special service for which such special rate is charged or levied. (4) All land and buildings used exclusively for farming and productive purposes shall be exempt from the payment of general rates. This to include all factories and premises used exclusively in connection with the production of any artiolo of public utility or food or produce. (5) The Government to reimburse all rating authorities to an amount equal to the exemptions. (6) The Government in turn to impose both a tyre and a petrol tax on all motor vehicles sufficient to pay these exemptions, thereby ensuring that tho users paid. (7) In connection with special rating loans the area to bo served to be scheduled, and only the ratepayers in that area to vtoe. Mr Page went on to explain the various aspects of some of his points and suggested that some such system as he had proposed be invoked as it would mean then that the farmer in common with everyone would have -to pay his share according to the use ho made of the roads. Mr Page was then questioned briefly on a few points by tho commissioners after which tho sitting adjourned until to-day. THIS MORNING’S SESSION. When the commission resumed this morning, evidence concerning farmers in the borough of Feilding was heard. On behaif of a number of ratepayers, Mr L. A. Elliott put before the commission a tabulated report concerning the ratepayers’ affairs in the excluded areas of the borough and in the borough. Mr Graham suggested that, in order to save the time of tho commission, the officials adjourn for a short while to vew the localities, but Mr Watson stated that, before commission commenced, he and his colleagues had spent considered time inspecting the borough. Evidence in connection with the properties was then taken. THE EVIDENCE. James McKenzie Turnbull said that he owned 10 acres in the borough in Sherwill Street. Aaccording to the borough rate notice, he was rated this year at the rate of 2id for general rates, 35-64th hospital and 4 7-64 tor special rates. Ho did not have water laid on or sewerage or footpath facilities. During the last twelve months there had been nothing done to improve the street. His property had not increased one penny in value in the last ten years, but his rates had been doubled. To Mr Pagan, borough solicitor, witness said that, as far as tho selling value of his property was concerned, loading improvements carried out had not affected it. He would say that the drain in Sherwill Street depreciated the value of his property. In reply to Mr Nash, witness said that equity in his property was being decreased every year by tho increase in the borough rates. He did not think the land was worth the same sum as when he had bought it during a land boom. He had paid £96 per acre for tho property which did not have any buildings on it. Sinco then, he had built a house on it and subdivided it into six paddocks. His chief objection to the increased rates was that he was paying for something that ho was not getting in the way of borough services. To Mr Watson, witness said ho would not mind paying increased rates if he were getting better borough facilities. It was not his intention, witness replied to Mr Nash, to make a profit out of tho Borough Council by any increased value which might accrue to his property through the supplying of better borough facilities. DRAWBACK OF HIGH RATES. W. T. Pratt, farmer, of Apiti, deposed a 6 to having bought 30 acres of rural land in the borough of Feilding about 10 to 14 years ago. In tho sections ho had bought he had invested £3900 and the rates last year had been £67 11s 6d. When he had bought the land the rates were approximately £1 per acre. Ho did not consider he had paid boom prices for tho land which last year he had made an attempt to sell at £2IOO, including a seven-roomed house, but the high rates had proved a draw back to the intending purchaser. With his rates, land taxes and cost of maintenance of the property, the investment had proved practically a loss of £IOO a year sinco he had bought the property. To Mr Shand, witness said he had 2500 acres at Apiti which he farmed. He had bought the land in Feilding for the purpose of noiding stock on its way to the Mr Shand: You are really getting a benefit from the land which you havo not revealed this morning. I should say you are not farming the land.to the best advantage. , , , Witness: Well, I don’t know how else I could farm it. Mr Shand: What is its value to you as an accommodation paddock I—About1 —About £4O per acre. . . , . Mr Shand : So that it is not right _to accuse the borough of Feilding of causing you a loss of £IOO a year—Probably not, but the position is getting worse. In replv to further questions, witness admitted that he had speculated in buying the property partly for its value as a holding paddock and partly because he thought ftiral land in tho bonough would increase in value. To Mr Nash, witness said that ho was not complaining about the price ho had paid for his land, or tho fact that ho was not getting a profitable return from it. His ■ objection was that his rates wore mounting every year, and he was getting no increased facilities.

IJ. W. Reid, farmer iof Feilding, said he owned 40 acres in Root Street which had once been in the borough of Feilding, but had been absorbed into the Oroua County. His rates per year were £46 17s 6d. The property was originally of 73 acres, but the final exclusion took place in 1924 of 40, the balance having been cut out of the borough many years ago. The rates paid on the 33 acres which were previously in the Oroua County were £5 13s 9d. Ho acquired the land from his father who had held it for 47 years, and it had been used fior fat sheep farming. ' To Mr Pagan witness said he had taken over the 40 acres after it had been excluded from the borough. He admitted that he did not know the amount of the rates when he had bought tlio land. In reply to Mr Nash, witness said a rate of 3s 5d per acre should be sufficient to pnovido all municipal services.. r To Mr Strand, witness admitted that he

had other property which he lived on. The fact that Feilding was adjacent to his pro r perty certainly should tend to increase its value. Mrs S. Pearson, of Feilding, said she owned a farm of 145 acres on the Halcombe Road of which 18i acres were in the borough. The rates on the borough area were £l6 Is 7d and on the 126£ acres in the Oroua County they were £6 17s lid. None of the borough facilities were available on her property and she did not require them as she was not living there. In reply to Mr Strand, witness said she bought 18 acres of the land in 1920 for farming purposes. To Mr Nash, witness admitted that there was a possibility of development in that direction of the borough if Feilding grew. MAYOR’S STATEMENT. Ernest Fair, Mayor of Feilding, was the next witness, stating as follows: —“We quite agree that the areas used for farming purposes in the borough are under the present system rated out of proportion to the benefits they derive from the borough. Ihis is due mainly to the inclusion of these farm areas in the original survey of the borough, at which time it was considered that the borough would grow at a faster rato than it has done. “In the borough the largest portion of the public debt amounting to approximately 60 per cent, is covered in three items —water, sewerage and roads. It must be, therefore, admitted that, although these lands are classed as farming lands, their proximity to those services must increase the value of the land very considerably. When raising theso loans the council no doubt considered that these farm lands would later on become a residential part of the town, and, naturally, provided services in the way of water, particularly, sufficient for the needs of the town at present and for a largely increased population. “It is perhaps unfortunate that tho town did not increase as anticipated, but it is hardly just that the wholo cost of theso services should bo borne by a portion only of the borough. If relief to tho farm area is afforded, I am of opinion that that rolief should not bo borne by a section of tho borough. It must bo remembered that, while ratepayers in the farm areas state that they find it a very hard job to mako their farms pay on account of tho heavy rates, it is equally hard for many of the business men and tradesmen in the town to make their businesses and trades a profitable undertaking, for it must bo remembered that tho business is the highest and probably overvalued area of the borough. Further, my cxpcricnco is that tho residential area is rated to its full value and tho burden of rates is high in that area also. As an illustration of this fact, tho town clerk reports that, of a sum of approximately £6OO outstanding in rates when the 10 per cent, penalty was added in January last. £35 only was owing on farm lands, the balance. being on business and residential properties. “It is my opinion therefore that, should this commission recommend that relief bo afforded owners of farm lands, by way of reduction in, rates, such relief should bo returned to the borough from the consolidated revenues of the country. If this course were adopted tho relief would bo contributed to by all sections of the community, particularly tho business and residential portions.’’ (Left sitting.)