UNPAID RATES

New Zealand Herald, Volume LXXIV, Issue 22839, 21 September 1937, Page 14

UNPAID RATES

10 PEE CENT PENALTY POWER TO REMIT WANTED REQUEST TO GOVERNMENT Representations aro to bo made to the Government by the City Council requesting it to re-enact in respect of the 1936-37 rates legislation similar to that passed for the previous six years authorising local bodies to remit or refund the 10 per cent penalty added to rates unpaid at tho expiration of six months and 14. days from the date of demand. A decision to this effect was reached by tho council at a meeting last night. Tho city treasurer, Mr. T. W. M. Ashby, reported that the UnderSecretary for Internal Affairs had advised him that it was not proposed to renew tho legislation this year. Mr. Ashby felt that tho council might ask the Government to consider the matter further.

A considerable number of ratepayers had applied for an adjustment of their liabilities under the Mortgagors and Lessees' Rehabilitation. Act, 193(5, and Adjustment Commissions had power to remit tho 10 per cent penalty, ho said. In each case in which he had represented tho council before the threo city commissions and ,one rural commission, penalties on rates had been remitted, including those for 193G-37. As a result, ratepayers who had retrained from filing an application for relief were at a disadvantage in respect of the 1936-37 penalty in that the council had no legal power to remit the penalty for that year. If tho council were given power to remit in deserving instances the penalty for last year, it would be able to assist ratepayers in such cases to rehabilitate themselves.

BUS TERMINAL LOAN REDUCTION IN TERM SOUGHT CITY TREASURER'S VIEWS Application is to bo made by the City Council to tho Local Government Loans Board for the term of the Municipal Transport Terminus loan of £'39,000 to be altered to 15 years instead of 30 years. Tho council at a meeting last night adopted a report by the city treasurer, Mr. T. W. M. Ashby, embodying tho proposal. Mr. Ashby reported that in his opinion the term of 30 years would preclude the council from disposing of the debentures. Efforts to place the loan on the present terms with various lending institutes had proved unsuccessful. Tho disability attaching to tho reduction in tho term of the Joan was the increased rate of sinking fund which would bo required. "There is a considerable reluctance on the part of investors to take up 3$ per cent debentures with a longer currency than ten years, because of the possibility of interest rates increasing in later years," said Mr. Ashby. "This difficulty has faced many local bodies offering long-term securities, and the result is that tho debentures require ultimately to be hypothecated at tho higher rate of interest of 4i per.cent charged by tho bank for accommodation on hypothecated securities. 'On the other hand, there is a definite preference at tho present time for investors to favour gilt-edged securities, and the market rate on Government and local body debentures and stock has hardened during tho last few months, so that tho return on such as fallen from round about £3 los per cent to £3 12s per cent. t. Jo re P° rt ': d on tho matter on c>oto ' le was stated as .id 18s per cent. Generally, therefore, tho council might reasonably expect to place the £39,000 loan at the present wime if tho term is reduced."

THE LATE MR. (J. DAVIS TRIBUTE BY THE COUNCIL Reference to the death of Mr. George Davis was made at the meeting of thf Auckland City Council last night by the Mayor, Sir Ernest Davis, who moved that the council express its sincere sympathy with Mrs. Davis and her family in their bereavement. Sir Ernest said that Mr. Davis was a kindly man ■who would be generally missed in. the community. Mr. Davis 'had given faithful and valuable service to the council, having been a member for three terms.

The resolution was seconded by Mr. E. J. Phelan, who said ho knew of no man who had given a better account of himself as a citizen. The motion was carried in silence.

A resolution of sympathy with tho relatives of Mr. Davis was passed at the Mayoral reception to tho Minister of Labour, the Hon. H. T. Armstrong, yesterday afternoon.

EXEMPTION FROM RATES SALVATION ARMY REQUEST Exemption from rates for tho Salvation Army maternity hospital in Dryden Street, tho workmen's homo and manager's cottage in St. Paul Street, tho women's industrial homo in Churton Street, and tho Samaritan depot in Grey's Avenue, were sought by tho Salvation Army at a meeting of the City Council last night. After considering a report by the city treasurer, Mr. T. W. M. Ashby, who pointed out that the properties would bo liable for tho usual water rates and special rates struck prior to tho passing of tho Statutes Amendment Act, 1936, tho Finance Committeo recommended that the maternity hospital and tho Samaritan depot should bo exempted from rates, and that the other applications should bo declined. Tho report was adopted.

GREY LYNN DISPUTE FINAL DECISION MADE, A final decision was reached by tho Auckland City Council last night on a question which has been the subject of some controversy in the Grey Lynn district. Tho council had earlier decided to construct a public convenience in Williamson Avenue, near tho intersection with Great North Road. Work was started when there was a protest from residents in the vicinity. As a of petitions and deputations tho Works Committee recommended at the meeting of the council on August 26 that the work be abandoned on tho Williamson Avenue site and that the building bo placed on the property on which the Grey Lynn Library is located. This proposal was opposed by a further deputation and was referred back to the committee by the council.

The committee reported last night that it had received further representations, among them being suggestions for sites in Tuarangi Road or tho Great North Road. The committeo, however, favoured its previous recommendation that tho library site bo chosen and this was approved by tho council.