TROUBLE DUE TO SPECULATION

Manawatu Times, Volume LIII, Issue 6667, 21 July 1928, Page 3

TROUBLE DUE TO SPECULATION

Opinion of Wanganui Town Clerk Rating on Rural Lands in Borough Evidence given yesterday at the Commission of Enquiry -into the rating of rural lands in boroughs, sitting in Feikiing, included that of the town clerk of Wanganui, who attributed the cry for relief from high rates to unsuccessful speculation, although in examination he admitted that relief should he afforded'in some cases. Other evidence included figures illustrating what relief to rural lands in Teildlng would mean to the business area, and also the views of Teilding business men.

On resuming, Mr. Treadwell, on behalf .of the Municipal Corporations’ Associations, said that Mr. U. Murch, town clerk, of Wanganui City, was prepared to give evidence, but had no desire to enter into any discussion as to the merits of the different systems of rating. , ~ Agrees Relief Necessary. George Murch, who had been town clerk for 23 years, said that the extent of the city area was now about nine suqaro miles. About two years ago petitions for severance • from thd city were granted and the arrangement with the counties to which tho severed land went, was that these, lands had to continue to pay special rates. To overcome certain difficulties arising from the inclusion of Gonvillo and Castlecliff town districts, tho city council obtained legislative authority ,tO' impose pne district wide special rate —really a general special rata Thus the excluded areas continue ,to pay their of special general rates. Ho considered it only fight and iair that these severed areas should continue to , carry their share. To relieve them would only throw their burden on to the city. To Mr. Nash: There was no dificrcntation of rating—all paid the same. Owners of tho severed land had undoubtedly had tho benefit of municipal services-.

require. Each case, however, would have to bo dealt with on its merits. No general system could be applied. Witness qualified his ,first answer by stating “provided the relief did not inflict any injustice on other Ratepayers.” What Relief Would Mean. N. 0. Harding, Fcilding, town clerk, handed in the following statement showing the rate in the pound necessary to strike over tho remainder of the borough to provide certain percentage of relief to the farming area: 10 per cent, rel/cf 3/32d. in the £, 1.328 per cent.; 20 per cent, relief 3/16d; in the pound, 2.650 per cent.; 40 per cent, relief 3/8d in tho pound, 5.312 per cent.; 50 per cent, relief 15/32d,. in tho pound, 0.65 per cent. Tending Business Men’s Views. Joseph Wallace Bramwell, merchant, of Fcilding, said that ho desired to place the position of the central portion of the before tho Commission in view of the'likelihood of soino relief being afforded the rural lands. The business area was already fairly heavily rated and had actually reached a limit beyond which it would be dangerous to proceed. Under the present conditions in Fcilding it was impossible to obtain increased rents and any additional rating would have the tendency to reduce values and restrict progress. In 1923 tho rates on his Fergusson str. and Manchester str. properties were £IBO, afid in 1928 they had mounted to £264/7/8. He was-prepared to lease his Manchester str. shop for half the rent charged five years ago. To Mr. Strand: He thought the rates on business premises generally had considerably increased during,recent years. Ho was not aware that in some cases in the business' area rates had actually been reduced.,-- < . /■_ ; Fcilding generally is suffering from the motor-car and bus? —That is so. Do you think that there is anything in the suggestion that the business people, like the., farmers, anticipated a little too much?—He had never known a period in Feilding when there was an excess of business premises. Tho accommodation had been taxed until just, recently. Ho felt optimistic as to the future . The business places that give the value, get tho trade. Feilding could scll as cheaply as any other town. Higher prices for primary produce increased tho spending power. Do you think that if ‘ some of the larger blocks of good laud adjacent to Feilding were cut up and closely settled that that would benefit Feilding?—Most decidedly. . ■ . _ , I suppose Feilding’really has as much good land around it as any place in New Zealand? — -t think so. It has very, fine country around it. You think it might' bo -suffering through large areas being held by few owners?—That may be. Continuing,' witness thought that the business people enjoying all tho municipal services were rated high enough to-day for those services. Referring tc the rural-. area’s he was not prepared to agree, that they should not be charged for the municipal ' services, unless it was known what the land was bought for. Eliminating the speculative element • relative to these lands, witness agreed that some' measure of relief might be granted -after very careful investigation. ‘ " The chairman: You are of thc. opinion that a certain amount of ! relief should be granted after a. very careful investigation into each case?—Yes. Mr. Nash: 'A measure of relief, say, of 2i per cent, would not inflict any great hardship-on the business and residential portion of the town, would it? —No, I should not think so. Victor Emanuel Smith, mad agent said the rates on his business block were last year £l4l/14/6, and he was satisfied that rates were already sufficiently, high. To Mr. Brook: The rates on the inner area are very heavy, and from the evidence he had heard it was apparent that the rating in Feilding was generally heavy. He considered that the inner area was tho more heavily rated. The chairman: You’re rated according to value. All are rated on the same footing?—That is sa , To Mr. Brook: He agreed that expenditure on municipal services increased the value of the borough proportionately. Those in the inner area benefited to a greater degree by the municipal services than those in the rural -area, so that rural land owners were paying more than a fair share of what they should. Mr. Nash: Should he pay for tho municipal services he does not get? Witness: Yes. The chairman; Why? Witness: Because they are in tho borough and if they desire to farm land in tho borough then they should bo prepared to share the cost of tho borough services. I maintain it is detrimental to tho town to have those farmers in the borough. While the land was farmed it could not be available for cutting up as residential sites. Mr. Brook: There has not been any demand for that land?—Not within re-

To Mr. Treadwell: The original area of Wanganui borough was a little over one square mile, and the increase in tho area was duo almost entirely to petitions to come in. , As to the question of classifying lands, the amount of rates taken off one area would have ,to bo added to some other portion of the city area, and it would be on .all fours with the proposal to relievo any excluded areas. Under that method, the relief from injustice of one area would only mean tho imposition of injustice on another., He could not say that any alteration in the rating system was necessary. In his opinion the trouble was due, to, over speculation. Development in seeon'dary towns was nothing, like what it Was-six years, ago, and it was difficult to sell land, so that people wanted relief from the injustice which.had arisen from speculation in land. . Tf relief (ras .proposed it should f?c undertaken by means of a system which would' enable every district being dealt with separately and on its merits. No universally applied system would be satisfactory. He did not believe in any special rating are Us. , ,

To Mr. BfoOk, Valuer-General; Under the present system of raising loans rate payers know the extent of their individual liability for special rates but if tjpir system of rating wore changed individuals would not know their liability. Lands could be classified on a scale providing /or business sites, residential sites and farming lands. In Wanganui City there were . such classes of land. Farm lands in a borough or city did not require all the municipal services. Mri Brook: Then is it fair that the farm lands should pay the same rates as the business area?—They don’t. That is regulated by the valuation. The value of land is affected by the extent of'their'taxation. 1 . Mr. Brook: If the value of land is reduced by reason of charges for which the borough did not give value is this right?—The':answer depends- upon this. In many cases these services are. available but are. not wanted because there is no heed for> them. Therefore the service is useless's —But it would not be fair to Durden the rest of the borough. Do the farm lands in boroughs represent tho bulk of the voting on loans? —No, the residential areas. Then tho farm lands are being compelled to pay for something they tem’t want?—-That is due to an accident in respect to the location of the respective areas. Witness wont on to state that the bulk of rural land in Wanganui was brought into the city area on the petition of the owners who thought to benefit thereby . Since anticipations were hot realised relief from rates was prayed for. It was mostly a case of unsuccessful speculation. Do you think it would be fair that all lands should bo, rated in accordance with tho services they were getting?—lf they were getting all tho services of tho borough they would not be farm lands. Mr. Brook: Exactly. If a section of land in a town did not have these services and then these .services are brought along what cmeet would this have on tho value of the section? —It would to a certain extent increase it, provided there is a demand for land. Under further examination, witness admitted that tho provision of municipal services increased tho value of land. To Mr. Nash: If the trouble was not duo to speculation in land it would be equitable to afford some measure of relief to farm lands. To tho chairman: Ho agreed that sonic relief should be given to farm lands which have been paying for some thing they-had never got, and did not

cent times. ! ' To Mr. Nash: If the Sandiland's land was cut up into quarter-acre sections and offered for £SO a section a good number would be readily taken up. The Commissioners were not prepared to take this statement seriously, and suggested that there were properties in the area under discussion , which offered themselves for such profitable speculation. Mr. Strand thought that such an opportunity for speculation was too good to ■ miss, and those present joined 'in the mirth. ■ (Left sitting.)