ANNUAL COLLECTION OF RATES

Nelson Evening Mail, Volume LVI, 3 October 1924, Page 7

ANNUAL COLLECTION OF RATES

(To the Editor.)

Sir, —The action of the City Council in collecting the rate annually instead of twice a year, is apparently misunderstood be quite a number of citizens. The innovation was made in the interests of the ratepayers. Under the old . -stem the ratepayers paid some £80!) (sometimes considerably more, in 1922 £1164) per annum for interest on overdraft and £250 for clerical and other expenses in connection with the second notice, making a total of £IOSO for which the city obtained absolutely nothing, except monetary accommodation. Under the present system these expenses aro obviated, and the Council returns this saved money to the ratepayers as a 5 per cent rebate on promptly paid rates amounting this year to £IOBB. In addition’; owing to the early payment of rates, ,£SOOO was placed on deposit for a lew months, and the interest, £4O, it; also available. Hence' the ratepayers get a. rebate of ,£IOBB which I,ho Council is able to make by saving interest on overdraft, £BOO, clerical a'n'd other expenses £250, earned interest £40 —totalling £IO9O. If we i vert to the old system the Council will again have to be financed by overdraft. The ratepayers will pay the same rates', but will get nothing back. .Most of the money will go to the bank in the form of interest on overdraft. ft may be urged that instead of giving the discount the rates might he further reduced ; bui.it is only possible to give the discoianf by getting money in early ancl this can. only be done bv holding out some inducement to rote-pavers to pay promptly. After all the rebate is qual to a reduced rate, and it is fair that those who pav promptly and so enable the saving to be made should get the benefit. By the present system the ratepayers have over £IOOO a. year more to spend. The fart that the small ratepayer is the one that mostly takes advantage of the discount is evidence that the attempt to lessen the burden of civic expenditure is appreciated by those upon whom it, probably falls the hardest. As 1 am aware from my personal knowledge that the Mayor was exeeptionnllv busy when Air A. Robinson raised the question, in your columns, 1 have, with the Mayor’s consent, made the above explanation. I am, eic., S. A. GIBBS.