CROWN AND RATE LIABILITY.

New Zealand Herald, Volume LXIX, Issue 21143, 29 March 1932, Page 13

CROWN AND RATE LIABILITY.

Sir, —The Prime Minister seeks to defend the gross injustice of the. position assumed by the Crown that property over which it holds a mortgage shall bo free of rate liability in the event of it falling into its hands. One of his reasons is that "the interest charged by the State lending department did not provide any margin out of which the Crown would be able to meet any additional liability." The obvious answer is that the State Lending Department has no tittle of justification for lending the taxpayers money at such a rate of interest as to debar the Crown from meeting every legitimate demand that can bo made upon the property. Another reason given was that the Crown did not make advances for profit, but its activities were in the main intended for settlement purposes and to promote thp welfare of the community. How does such madness as lending up to 95 per cent, of the value of land and building "promote the welfare of the community?" Who has to loot the bill for such extravagance? Do<;s the Government give any indication of altering the clause in tjie Advances to Workers Act which authorises such advances? Will it, let the Rent Restriction Bill lapse ? That Act was the direct cause of the stoppage of building houses to let by private enterprise and forcing the 'govinto the position of mortgagee without reasonable margins. Ihe evil should be cut out by the roots, not. excuses made why such iniquities as refusing to pay rates should continue. Abolish the clause permitting advances up to 95 per cent, of value, charge a rate interest which will permit the State t > set an example of honesty and :neet its legitimate expenses, lilt that is done, all this talk, of "the welfare of the -community" is mere clap trap. ; 231,' Parnell Road. J. Tiiornes.