LOCAL BODY RATING.

New Zealand Herald, Volume LXVII, Issue 20642, 14 August 1930, Page 13

LOCAL BODY RATING.

COMPARISON OF SYSTEMS.

DIFFICULTIES INVOLVED. The problem of local body rating, . with particular reference to unimproved and capital values, was the subject of an address by Mr. W. H. Cocker to the Auckland branch of the Ecorioriiic Society last evening. After presenting a number of arguments Mr. Cocker said it was impossible to dogmatise, but probably when once the tax was established the unimproved value might be the fairer. However, there were qualifications, for it penalised a person who had a garden or an open space and if there was much land which could not be devoted to building there would probably be an injustice. It- was not fair to judge the system on the effects in Takapuna and Mount Albert, Mr. Cocker snid. The change there was made in dull times, but undoubtedly the change had added 'to the depression. There- was a great fall in the values of building sections and of houses surrounded by large areas. Building sections changed hands the most and quietness in this market led to a general feeling of depression, which extended to all properties. - Mr. Cocker suggested that either system should be compulsory or a commission should be sot up in each case to consider, first, the general state of the district, whether it was depressed or not; second, the requirements as to building; third, whether the land was being held back unnecessarily and whether land was available for the amount ef building required ; fourth, whether there would a tendency toward undue congestion; and fifth, what anomalies would arise. If anomalies existed, and if the commission recommended the change, there should be a classification of land. ~ ' " Rating on unimproved value may have definite advantages in districts which' are progressing, or where speculation is so widespread that land required for building purposes is being held back, especially if this is so extensive as substantially to increase vents," Mr. Cocker said. " Further, the system has greater advantages in the early stages of a country's development, and its value is much more problematical when a country becomes* more settled. The system also works greater hardship m a district which is not homogeneous, that is, where there are farm lands or lands not required for building in a rating district. The possible injustice consequent upon a change-over is so great that precautions "are necessary both i:i deciding on the change and in alleviating the anomalies if a change is made." .