County Rates and De-rating.

Northland Age, Volume 2, Issue 25, 24 March 1933, Page 8

County Rates and De-rating.

and other essentials had been met all and more of the income bad been paid. Farmers were not business men and they had not studied, their work was to produce and they had done this work os could be seen from the greatly increased production but this was leading them nowhere as every pound ofbutterfat they produced they did so at a loss. When the table had been worked out the farmers concerned were astounded at the figures and if all farmers knew their true position there would be such an outcry that the long overdue reform, de-rating, would soon come into force. That these figures were not just from isolated case 8 was shown by Government, figures for the whole of New Zealand and so far as this district was concerned, the costs presented to the Commission that sat to enquire into the ability of farmers to pay drainage rates. It was found at that time, with butterfat at 1/5 per lb, that the farmer’s budget about balanced. Taking the Department of Agriculture’s report, it showed that per lb butterfat, the cost of production was about 45% above this, so it showed that the figures for the district were not very different from the National figures. The Government Economy Commission had stated that with butterfat at about 1/5 9% of the farmer’s income went to rates and 34% to interest. Even farmers whose land and stock were clear could not all pay, and Mr. Bird instanced a case that had come to his knowledge, of a most industrious frugal farmer who held all his land and stock clear who could not this year pay his rates in full. It was self evident that there were no farmers who could pay their rates out of income and but few who could do so out of capital. It had been repeatedly stated that a farmer could live off his land, within a couple of years this might be possible but it would be putting civilization back hundreds of years—the cities could not exist—there would be no international trade and no payment of overseas debts as there would be no primary exports. No person could have anticipated such a colossal collapse of produce prices as has taken place through, the speaker contended, the operations of alien money barons, the farmer had contracted liabilties in good faith but now he was called on to pay three times the amount so far as butter was concerned and four to five times the amount with wool, and the burden was intolerable.

Deputation from Awanui Farmers’Union urges on Council the need for de-rating and Council passes resolution endorsing the total derating of farm lands

In continuation of their campaign for the de-rating of farm lands, members of the Awanui Branch of the Farmers’ Union waited on the County Council at its meeting last Wednesday and placed the full position before the Councillors, The speaker;; of the deputation had full knowledge of their subject matter and supported by fi ,Mires that were substantiated, placed' the position before the Council in a most comprehensive manner.

Deputation Express their Opinions

After the deputation had been introduced by Cr. Matthews, Mr. W. Rose gave a resume of the meeting of ratepayers held at Awanui and expressed appreciation of the manner in which the County Ch lirmaii and Councillors had met the ratepayers. He wished to strenuously deny the rumour that was current to the effect that concentrated action was being taken by members of the Union at Awanui, not to pay their rates. That was incorrect, the position was that the majority could not pay, but those who were in a position to do so should meet their rates. At the meeting at Awanui a resolution bad been passed requesting the Council to do all in its power to further the proposals for the total derating of farm lands, for, as the majority now recognised, the present system of levying rates on farm lands was unjust and it was to place the full facts before the Council that the members were present.

That there was no passive resistance to the paying of rates, was stressed by Mr. E. R. Bird, the chief speaker for the deputation, they believed that those who could should pay but they did not think that many ratepayers were able to pay. At the meeting at Awanui agreement was reached on a number of points, but on two they were not agreed, these were the need for total de-rating as against partial de-rating, and as to who could pay rates.

Taking the first point the speaker said that he was there to show the Council that total de-rating of farm lands was a fair and just condition. He would not reiterate all the arguments that could be brought forward in support of his contention as these had appeared in the last issue of the “Northland Age” and no doubt councillors had made themselves fully conversant with these points. One fact that should be borne in mind was that when the petition was presented motor taxation was only about half of what it is at present and so mechanical transport is bearing a much greater charge than heretofore but this impost is not being used for roading purposes but is an ordinary revenue tax. With this betore them farmers and motoring interests should not be fighting but working together as mechanical transport is now bearing such a burden that if all the revenue raised was used for roading purposes, total de-rating could be introduced at once. In regard to partial de-rating they had had that for some time, for when the Highways Board was created a subsidy was paid on the maintenance and capital expenditure on all main highways. Owing to the high standard set by the Board, to an extent necessary, if motor transport was to use the roads, the amount required- for roading has so increased that County rates are now 80% more than before the Highways Act came into force, while borough and city rates are about the same. The running costs for motorists on wintry roads are much higher than on city roads and so country ratepayers pay more through taxation, as well as by way of rates, than does the city motorist and the country ratepayer is now penalised to maintain long miles of metalled roads. The need for the total de-rating of farm lands has been recognised in other countries and has been piactioally carried into effect in England. The speaker then quoted from a pamphlet on roading, written by a civil Engineer, showing how the roading costs to the country ratepayer has increased so greatly during the past few years. Coming to the next point, those who can pay and those who cannot, Mr. Bird handed to Councillors a table of figures drawn up ot seven farms in the Awanui district, showing the total expenditure for the year and the income (this table we print below) from these figures it was apparent that these farmers could not pay their rates, for after living expenses

Referring to the collection of rates Mr. Bird said that the Council had two alternatives: they could put the screw on and they would receive a little more but he did not think enough for them to carry on. The payout for butterfat for the month would be about and what could a farmer give out of that pay. They were facing the worst winter the world had ever known and it would be impossible for any money, however small, to be allocated to rates from the farmers' returns even if they were pushed to the utmost, In conclusion Mr. Bird thanked the Councillors for their patient hearing and said that he hoped he had convinced them of the impossibility of the majority to paj their rates and of the need and reasonableness of total de-rating. That Mr. Bird had ably covered the whole field was the opinion of the next speaker, Mr. G. Cosson. They were trying foi total de-rating and this they considered just and fair. Other districts were also moving towards the same goal and it was the feeling that although a number may pay their rates this year, it would not be possible for them to do so in 1934. The charge made against the

land for road and hospital maintenance was not a just one, surely these were a national chaige. Total de-rating was the logical end and why not aim for that goal.

Through the misuse of the medium of exchange at the hands of a few money grabbers, misery and want was stalking through the land. Why should not the Council default now, as it will have to later on, and so save much distress, concluded Mr. Cosson. County Chairman in Reply 111 replying to the deputation the County Chairman said that the Council would go into the question but it appeared from the figures submitted that even if the rates were wiped out the position was absolutely hopeless. If the Council could not collect the rates then it might just as well hand in its charter to the Government but they must do all they possibly could before taking such a drastic step. To collect enough money to pay his own rates had meant that he had to go short in other ways, concluded Cr. Vickers. Cr. Gartou and other Councillors expressed appreciation of the very full and lucid manner in which the deputation had placed their case before the Council. Councillors Express Their Views When the questions raised by the Deputation were discussed by the Council the Chairman after giving a brief resume of the ratepayer’s meeting at Awanui, read the resolution that had been carried by those attending. He was still of the opinion, continued Cr. Vickers, that a number who could pay their rates were not doing so, the figures submitted by the deputation showed a loss at farming operations, but what farmer is not carrying on at a loss —the slump cannot last forever. If total de-rating vfaa introduced what fund would pay for the upkeep of the roads, asked Cr. Thompson. Motor spirit was now carrying a high tax and it was mostly repuired for revenue purposes. The Government was hard put to it to find the necessary revenue to carry on and could not spare any money for road purposes. That he was in favour of total de-rating if it were possible to bring about concluded the speaker. “I am in favour of total de-rating,” said Cr. Garton, “the user should pay for the upkeep of the roads. The farmer has to pay, whether he uses the roads or not he has no option. I believe that the time is not far distant when total de-rating will become law in New Zealand and we should push for that end.” That the statements put forward by the deputation were most convincing was Cr. Berghan's opinion. He believed in total de-rating—the user of the roads should pay. If an extra charge was placed on motor-spirit, the farmer would still pay his fair share of the cost of the road upkeep. The Council should get behind the movement for total de-rating and give it all the support it could. He would like to see total de-rating in force, said Cr. Holder, but he did not think that it could be carried out, but the Council should do all in its power to obtain as much relief as possible for the ratepayer, as the land was carrying a heavier burden than it was possible for it to do. Resolution Passed The following resolution was then moved by the Chairman and seconded by Cr. Matthews:— “That a remit be forwarded to the N.Z. Counties’ Association for consideration at its next conference, urging the total de-rating of farm lands as the best means

FARMS EXPENDITURE A B C D E F G County Rates 23 35 14 15 17 21 25 Drainage rates 18 50 22 35 12 30 11 Mortgage interest Other interest 17 30 12 25 22 Capital repayments 50 20 13 Stock payments . Rent 80 Instalments on implements 7 „ Milking Machine 40 Maintaining and Running „ 18 45 15 20 13 18 15 General Maintenance 12 25 10 20 20 22 10 Insurance on buildings 3 22 2 3 2 3 Manure 10 30 7 30 20 10 15 Living and Sundry 125 180 100 135 100 116 130 Depreciation plant and buildings 10% 70 80 60 80 80 50 70 Wages 30 80 Total Expenditure £503 647 309 616 326 420 437 RECEIPTS Butterfat at lb 248 390 177 319 180 230 195 Pigs profit 15 5 Stock sold 30 Total Receipts £293 395 177 339 207 236 195 Loss per annum 210 252 132' 277 119 184 242 £503 647 309 616 326 420 437 Area (acres) 70 178 50 74 48 70 65 Lbs Butterfat per acre 100 62 100 102 104 99 89

of reducing the presentburden of taxation on farmers and suggesting an increase on Petrol Tax assuring that users of the roads should pay. That a copy of this resolution be forwarded to the Prime Minis! er through the Member for the district.’’

Appreciation of the good work that the Farmers’ Union was doing and had doae for the de-rating of farm lands was expressed by Councillors and a copy of the resolution will be forwarded to the Union through the Awanui Branch.