TAXING RECREATION GROUNDS

New Zealand Mail, Issue 1798, 22 August 1906, Page 67

TAXING RECREATION GROUNDS

DOES IT REALLY PAY? DISCRETIONARY POWER TO EXEMPT. The hygienic and artistic value of a certain proportion of open spaces, situate in the residential part of a city, and accessible or partly accessible to the public, will probabiy be denied by no one. To this category belongs the bowling green. It is a well-known fact that as city lands grow dearer, and as ratable values mount higher, it becomes increasingly difficult to maintain these open spaces for their original purposes, and to save them from the grasp of the speculator and builder. The rate-burden, severe in any case, becomes more severe where rating on the unimproved value has taken the weight off improvements and put it all on to the land. But this is not so much a question of exemption from rates on the unimproved value as of exemption from any rates at all. The equity claimed by the bowling greens would be much the same under one method as under the other. The test question is: Does it really pay a city to exact any heavy rate, under any system, from an open space which is maintained for purposes of outdoor recreation, and, not for profit-making, and which admits the public on reasonable conditions? Does it pay a city to cause, by increasing rate-burdens, these spaces to be built over? NOT CLOSE CORPORATIONS. Two things are liabio to happen when city land becomes so dear that open spaces can he held only at a loss. The open spaoe—bowiing green or tennis comt, or other playground —may come to be the property of a wealt-hv few', who can afford to hold it against loss, but who become exclusionists and a close corporation, in which case much of the public benefit evaporates. The alternative is that the owners of the open space may ask for reduction or remission of rates, on the pleas of public advantage and elimination of private gain. This is, as we understand it, the attitude of the bowling clubs in Wellington. They do not desire to charge an excessive subscription, and to become close corporations. They would sooner open their doors as wide as they reasonably can, and, by giving as much s.s possible to the public, secure in return frm the public exemption from, or reduction of, rates. BENEFITS TO THE PUBLIC. The benefits which the bowling greens claim to give the public are (1) admittance ns members, subject only to good character, at a reasonable fee; (2) admittance of the public as spectators, subject only to good behaviour, said public having the privilege of entry on any playing day, sometimes with afternoon tea and a band thrown in; (3) the general benefit of providing lungs for thickly populated residential neighbourhoods. It is also argued that tlio greens enhance the value of surrounding places, and thus the local body receives an indirect benefit through rates. In a good, residential neighbourhood, such as most of the Wellington greens are situated in, this enhancement would no doubt be a substantial thing. It must ho remembered, too, that outsido of the rates proposed -to be remitted, the bowling clubs have to meter every ftint of water that goes on the greens, and have to pay for it as extraordinary supply. If then - financing becomes more difficult, the clubs may have to raise their subscriptions in order to their way. Many 'members would feel such a pinch, and might thus be debarred from one of the few outdoor recreations open to older men. THE CLUBS’ CASE IN DETAIL. We have made inquiries from officials of Wellington bowling clubs to see whether they can substantiate the points of the above case. We append the result:— Rates on Rate 9 last on Year of Unimproved Annual Value, Club. Members. Value. 1905-06. «£ £ Thorndon ... 100 10 0 0 30 2 0 Wellington... 171 21 6 3 50 4 10 Petone ... 72 1 7 6 4 4 4 The Victoria Club, with 120 members, bad to pay in 1906-06 rates amounting to £lB 6s 4d. What its rates were in the last year of annual value is not

shown, hut in 1897 they were only £4 5e 2d. The three clubs whose figures are tabulated may be taken as illustrating concretely the ratio of increase in rates since rating on the unimproved value came into force in Wellington city on April let, 1901. Karori bowling green did not exist under the annual value system; its present rates are £3 6,s 2d on the unimproved value of half an acre, and it has sixty-seven members. This makes 530 members of five clubs; allowing for the other three clubs, thero are probably 800 to 1000 bowlers in and about Wellington, who have to pay about threo times as much in rates as they paid some five years ago. Going further into details, one finds that the Wellington Club in 1888-89 paid £l3 rent and £4 10s rates; in 1895-96 the rates had increased to £l4 3s 6d; 1900-01, £lB 14s; 1901-02. £2l 6s 3d; 1902-03, £3O 19s 10c!; 1903-04, £47 0s 3d: 1904-05, £43 18<s Id; 1905-00, £SO 4s lOd. The Victoria Club has incurred mortgage and debentures amounting to £ll6O. Tho clubs generally confirm tho remarks made above with reference to admittance on playing days and the welcome given to tho public. There is no private gain, and tho money goes into tho green. The treasurer of the Wellington Club writes:—“ln Sydney, Melbourne, and Scotland, many of the bowling greens arc on city property, and free of rates. In New Zealand, while other sports are asking for free grounds, bowlers provide for themselves bowling greens, and lung space for the public, open to all visiting bowlers and to citizens.” AUTHORITY Ob LOCAL BODY TO REMIT.

If bowling greens are to receive any consideration in the matter or rates, now is undoubtedly the time. We understand that tho Government will introduce this session a bill amending the Rating Act, which measure would provide opportunity for inserting a clausa to give to local authorities a discretionary power to reduce, or to wholly remit, in any one year, the rates on bowling greens or open spaces, provided —(1) that such spaces aro used solely for purposes of bona fide out-door recreation; (2) that there is no undue profit-making; (3) that the fee for active membership is reasonable; and (4) that the public is admitted to the grounds under reasonable conditions. As local bodies would be simply dealing with their own revenue, the Government. should have no objection to including such a discretionary power in its bill. If the Government has any doubts on the point, no doubt the inclusion of our old friend the Governor-in-Council. with a power of veto, would meet the case; though there seems to be no necessity for it. The local authority would have ample means of protection against imposition, for in the event of profit-making or of any breach of the conditions, it could in its discretion reimpose the rates, or part of the rates, as the circumstances warranted. THE ATHLETIC PARK. The operation being discretionary, the openness of a clause such as is proposed should bo no objection. The power needs to be a wide one, for there are other open spaces besides bonding greens that may possibly make out a good case for exemption or reduction. Take, for instance, the Athletic Park, which,, though leased by a private company, barely pays its way. The Athletic Park Company, now thirteen years old, is one of those unfortunate leaseholders whoso covenants to pay rates have become, in these latter years, such an increasingly heavy obligation. The rent is £163 per annum, and the rates, which in 1900-01 were £34 7s sd, are now £172 0s 9d. The park, eight acres m extent, is part of a native reserve, and, through lack of freehold security, the company has had to pay high interest on tho money sunk in the ground m improvements. Idle result is that the company has paid to its shareholders only 15 per cent, in thirteen years, or a little over one per cent, annually ; and the company claims that if there is a sports ground in New Zealand run for the benefit of athletes and the publics, it is the Athletic Park. No open space in the city affords in winter an outing to so many people of Wellington as does the Athletic Park, and as long as prices and profits both keep down, it is well worth considering whether the Athletio Park should not, in the public interest, receive lenient treatment from the City .Council. The alternative appears to be subdivision for building. , Possibly other sports than bowiing and football have their claims. In any case, the discretionary power is a desirable expedient. It is a question of trusting the local authority. The matter is one that might well go before the approaching Municipal Conference.