LOCAL BODY TAXATION.

New Zealand Herald, Volume LXVI, Issue 20365, 20 September 1929, Page 16

LOCAL BODY TAXATION.

Sir, —The Local Body Empowering Bill which was recently before Parliament will, if it becomes law, impose another additional and unnecessary burden on the already over-taxed family man who is a ratepayer. Primarily this bill purports to give power to all local bodies to make subsidies to private aero clubs to the extent of the amount of their unauthorised expenditure, and a further grant can be made by merely making an application to the Government Loans Board. Further, power is to be vested in local authorities to acquire land and to build and erect aerodromes and landing places for the benefit of private or public aviation elubs or companies. Commercial aviation in this country should be encouraged and facilitated to its fullest possible extent, but not at tho expense of the unfortunate family man who is compelled to pay rates to a local authority. It is the paramount duty of the Government to establish the airways and all the necessary land, building and accessories. The local body taxation of New Zealand is simply appalling, and it is questionable as to how long the family man who is a ratepayer can stand the continual strain. Owing to the fall in land values the existing Goveriynent valuation on which local body rates are assessed is too high by at least 25 to 40 per cent., and many properties to-day are not worth anywhere near the Government valuation. Tho vast majority of homes are today subject to a first,, and, in many cases, a second mortgage, and the only interest which tho owner holds is the equity or tho difference between the mortgages and the marketable vnluo. A person, therefore, who has an equity in property is deemed, the owner thereof and pays rates to a local authority. These rates include interest and sinking fund on loans for roads and parks, -the upkeep of the administration staff and common household necessities such as electric light, water and sewerage. In addition the local authority levies a huge and increasing hospital rate, and recently both the lato and present Government havo placed a largo burden of the unemployed problem on the shouldors of the local bodies, who. have-in many cases raised big loans which eventually havo to be paid by tho family man who is a ratepayer. Tho Government now proposes fo go ono step further and tax the family ratepayer through the local authority for tho acquiring and itpkeep of aerodromes and landing places. The scheme is unjust and iniquitous, as tho tax is paid by tho family man who is struggling to make a home, while the persfln of wealth who has his money invested in other avenues than land would pay or contribute nothing. Members of local bodies • give their time and services free, and they should not be called upon as taxgatherers for the Government to pay hospital dues, nor to solve the unemployment question, which is a national concern, nor should they now be called upon to establish aerodromes for private enterprise at the expense of their ratepayers. These matters are concerns which affect the national life of the Dominion, and as such thoy aro problems to be solved by mombers of Parliament,, who are paid for their services, anfl any expenses should bo borne by and paid from the Consolidated Fund. . L. A. TbZEp.