LOCAL RATING SYSTEM.

Otago Daily Times, Issue 20832, 26 September 1929, Page 10

LOCAL RATING SYSTEM.

ADVISABILITY OF A CHANGE. CITY COUNCIL TO WESTIGATE. “ That the Finance Committee be requested to report upon the whole subject of local rating with a view to the advisability or otherwise of initiating steps to bring about a change in the incidence of local taxation,” was the text of a motion moved by Cr Wilkinson, at the meeting of the City Council last night. Cr Wilkinson stated that for some time it had been apparent,to economists and to those concerned in municipal administration that the system of raising the neces sary revenue which at present obtained had serious imperfections which interfered very seriously with the successful provision of the many amenities expected' to be provided for the use of citizens, such as good roads, water, gas, electricity, etc. The' incidence of taxation pressed heavily on a large number of citizens who were not well able to carry the burden. The result was that many projects which w.ere very necessary for the welfare of the city were turned down because of the increase, slight though it might be, in the rates. In national finance the sheet anchor of taxation was the income tax. This, and the super tax and excess profit, tax had enabled Great Britain to carry an enormous burden of taxation. If the incidence of"national taxation presented the' same inequalities and restricted incidence as municipal taxation, the burden would be crushing, aud would endanger the whole ' structure. . There were many wealthy men in every large city who paid comparatively little towards the many services provided for them. Their wealth was not in a form which the present rating system could adequately tax. On the other hand, here were a large number of ratepayers, including the unemployed, who had to contribute of their very small means, in *-he aggregate, a large sum to the city’s revenue. He did not profess to foreshadow what form the Finance Committee’s recommendations should take, but he did hope that the discussion of this subject would not be purely academic, but would result in suggestions which would give a lead to the other cities in the Dominion, and result in a system of local taxation more elastic, mon. practical, and with fewer inequali ties. An was presented to the Finance Committee to make municipal history by : doing the necessary pioneering- work in the inauguration of a very necessary reform on the' system of local taxation. Cr Tapley said that some years ago the council had gone closely into the question, and he would not like to ask the town clerk to go so far into it again. The council had come to the conclusion that the present system was the best, and was fair to everybody, - Cr Scott: I wouldn’t say that. Cr Begg; It might be fair to you. If the council could learn anything fresh from the proposed investigation it was worth going into, Cr Tapley continued. The present system was perhaps just as, burdensome to' those who were looked upon as .able to pay as it was to those who, it was considered, could, not afford to pay. Cr Cldrk said that- the Finance, Committee would raise no objection to considering the matter. Cr Tapley did not quite grasp what Cr Wilkinson wanted. The previous investigation had been made into the systems which the law permitted. Or Wilkinson wanted an . investigation into the feasibility of raising money by some other system which the law did not permit. The burden would fall on the town clerk. The , question had to be investigated by an expert, and unfortunately the council had only one. I Cr Begg: Is he the chairman of the Finance Committee? ' '■ <

Cr Clark: I am not an expert. Cr. Scott You will be when you are' through with this.—-(Laughter.) Cr Mitchell asked whether the purpose of the proposal was to moke the,rich man in a small house pay more than the poor man in a large house. Voices; Exactly. t : The motion was carried.