RATING SYSTEMS

Otago Daily Times, Issue 22353, 29 August 1934, Page 15

RATING SYSTEMS

- - TO THE EDITOR Sir, —So there will be another poll on the vexed question of rating on unimproved value. Are we to be faced with a succession of expensive polls at the will of a small coterie of agitators so Jong as their dream is unrealised if Mr Shaddock, who has led the movement, would presumably benefit by its success. I do not forget that he owns a large, expensive brick home. Mr Cox has no stake in the district, and will probably leave the place once his mayoral term is ended. The question matters nothing to him. Mr SilvcrstOne's position 1 do not know. If these men are so anxious for the change, why do they not move to St. Kilda, and leave the rest of the community jn peace? Mr Shacklock himself supplied the answer at the Mornington meeting when, in a rage because Mr Ireland dared argue that the benefits of the new scheme might not eventuate, he declared that St. Kilda was the most highly rated district in the country. This under Unimproved value rating! ■ Tt is interesting and illuminating to hear the self-styled champions of the working man pressing for a change, which will inevitably benefit the rich capitalist and wealthy companies at the expense of that same working man. The bigger and finer the building, the greater the reduction. Mr Lewin produced figures showing a reduction of hundreds of pounds in rates under the new scheme- for certain central commercial and business premises, these being a few only of the many firms which would benefit very considerably. The same amount must be raised for municipal expenses, plus the added cost of the poll. Mr Cox declared the amount of £21,000 would be added to the present total rates paid by the central area of the city. Possibly he has had a dream in which ne saw himself leading the Government Valuer gently by the band,' and indicating to the said valuer the properties to be so heavily penalised and the value to be placed on each. After the Mornington meeting I had such a dream myself, in which I followed with Mr P. W. Shacklock; but the pleasure of the expedition was rather spoilt by the wails of a follower who wept loudly as he hunted for a home with an open sewer adjoining. The amounts saved by the financial companies are much more likely to become an added burden on the shoulders of suburban ratepayers. There is, in fact, no other alternative. Mr Shacklock’s frequently reiterated statement that one’s rates are increased if one paints bis premises, replaces a broken fence, and keeps his property in good order is, as he should know, quite ridiculous. Many a poor man has ,a small cottage on a fairly large garden, which he uses to grow vegetables, and perhaps some fruit, and on which he also keeps hens, thereby ekeing out a very struggling existence. This jg the man who would suffer most under the- new scheme. The rich man could afford a garden; the. poor man simply could not. He would be forced to sell bis land. It is an excellent example of class legislation. The rich man, .of course, sits back and says nothing. Why should he worry? These agitators are fighting his battle. Their success will place more cash to the credit of his bank account. Let the worker remember Mr Lewin’s warning. There is none so well qualified to speak on the subject. As an unemployed worker myself, I think, if the council can afford to throw away £2OO on a poll, -this money could be much more usefully employed in ' providing work for those of our unhappy band about whose welfare Mr Cox once showed so much Concern (in words) before his election as Mayor. " ■ - i ' - I attended the . meeting, and consider Mr Cox’s - assertions wei;e insulting to the intelligenpe of his hearers; our “ wonderful harbour-”—with its fine mud flats; the Dunedin capital invested in the north (the north then, in spite of the unimproved value rating, cannot finance ita own undertakings, and must borrow from Dunedinites who have more .than enough for their own local investments) ; the slow growth of population in Dunedin—-well, Dunedin is a bonny town, but —our winters! Ex-Dun-edinites always seem glad to visit us, but they do not return in winter. The sunshine of the north is a wonderful magnet; also the capital city is in the North Island. Our big companies still survive. Strange to say. these were established, grew, and have flourished for many years, even before Mr Cox came to teach Dunedinites their business. The Mornington meeting -was anything but representative. ’ Mornington people, on the whole, ignored it. Those of us who went were there chiefly from curiosity, and were not to be dragged into the kind of argument (?) the two supporting speakers used. For my own part, I should suspect the mentality of a man who*.was content to spend 10 years in a house with an open sewer, on the boundary of bis yard, as pne speaker declared he had done. Yet this man declared Dunedin is a ‘‘ dirty, filthy, shabby bole, with worse slums than'Glasgow,” Mr-Cox may be convinced of the benefits to be enjoyed under the new scheme. I do not know, but at the-meeting it certainly seemed that Mr Shacklock pulled the strings and Mr Cox jumped.—l am, etc., Unemployed Ratepayer. flu his report on the rating on the unimproved values system Mr Lewin gave 36 examples of the drastic redistribution of the burden of local _ taxation' which would result from a change in the system of levying rates. He was careful to explain that the examples were to be considered subject to certain reservations, and ; while some showed substantial savings in rates others provided equally heavy increases. No names were given in this connection, nor were the premises specially indicated. — Ed. p.D.T.] TO THE EDITOR Sir, —Considerable interest has been aroused by the announcement that it is highly probably that extensive steel works will in - the very near future be established in Dunedin and that if this eventuates it will mean employment for some 2000 men. I-presume our Mayor is favourable to this great proposition, though his advocacy of the system of rating on unimproved values is not likely to enhance the chances of 4-he British company deciding upon this city as the site for their Just fane}' the rates this concern would, if the rating system is changed, be asked to pay for the 100 to ISO acres of land on the foreshore which it is hoped they will acquire. No, I think that, should rating on unimproved values be decided upon there is no doubt that the company will turn clown Dunedin and go to Auckland or elsewhere. How does Mr Cos reconcile his attitude over the'rating system with his desire' to find work for the' unemployed?—l am, etc., Wanting Work. to the editor. Sir,— ln- your issue of, Saturday “Valuer” askecKyou to tell, him bowmuch would be required in the £1 under the unimproved value system to raise the same amount ns is raised for the ■■•.■ present year under the annual value system. Your reply was that no one can tell until a new* valuation is received from the Government. Your statement is entirely contrary to fact. If your contention is a true one. notwithstanding the ratepayers decide to adopt unimproved value next month, the rates will be levied on the annual value system next year, and will continue to be so until the entire city is revalued. You know that it is im-possible-to revalue the city before , the rate- notices <irc issued next year, and therefore next year rates will be levied on the present Government values. As a matter of fact, if unimproved value is carried, there is no necessity for an immediate revaluation,-and those who are now opposing rating on the unimproved value would be the most strenuous? opponents of revaluation. Allow me to inform “Valuer” that the rate required to produce the present amount of revenue would be lid in the £. In your leading article you quote tbe statement of the Mayor that under unimproved value Mornington would save £3OOO. North-East Valley £3OOO, Cavereham and South Dunedin £12,000 between them, and Anderson’s Bay over £4OOO. These statements are absolutely true, as anyone who studies the City Council Year Book and the Local Authorities’ Hand Book can verify for themselves. These figures show that the ratepayers of North-East Valley arc over-rated to the extent of 25 per cent., Mornington 25 per cent., Caversham 40 per cent.. South Dunedin 50 per cent., and Anderson’s Bay 40 per cent. To put it another way, we will take a house rated, at £ls a year under our-present system. Under unimproved value, in North-East Valley, the rates would.be £l2, in .Mornington £l2, in .Cavereham £ll, in South

Dunediu £lO, and .in Anderson’s Bay £ll. These figures, are based on facts, not on fiction. What first impresses one is that tlie greatest saving is in South Dunedin. This is because the present system is hardest on the poor. The figures for Mornington and North-East Valley do not show such a large saving because of the large areas of vacant land in these districts, .the reason I am a supporter of the unimproved value system is because I believe in justice, and think that, if a certain section of the community own half tlie land, they should pay one-half of the rates. At the present time Cavershani and South Dunedin own one-ninth of the land of the city as a whole, and yet they are paying one-sixth of the rates. \ou say that is justice. I call it robbery. I take a pride in the town I, live in, aiid think all improvements to houses and business premises should be encouraged. You support a system that is the reverse of this, and believe that the more dilapidated a person allows his property to become the greater should be his reward. The only result of the fatuous policy supported by you will be that we will have a few wealthy laud owners riding about in their motor cars while the great bulk of the people live in hovels.—l am, etc., P. W. Shack lock.

Dunedin, August 27. [Despite our correspondent's confident assertion to the contrary, our reply to "Valuer’’ was in accordance with fact. We could have supplied a speculative figure but assumod that our inquirer was seeking to ascertain the exact position. No person can say with certainty what rate in the pound would be necessary under the unimproved value system to raise the same amount as is raised for the present year under the annual value system. The reason is plain and easily understood. In the event of rating on unimproved values being, carried, at least a Eartial revaluation would most certainly eeome imperative before the next rate notices are issued. If Mr Shacklock has any doubt on the point it will be dispelled by a reference to the Urban Land Rating Act, 1932. Section 3 provides for the compilation of a farm-land roll, the purpose being to protect the owner of urban land within a borough against such a change in his rales as would be made if the new rating system were adopted. As the last valuation of the city Was made in 1920-2] and a period of changing values having followed, it would surely be reasonable to expect some readjustments to be made before the new system was applied-, Mr Shacklock is confident that a revaluation of the city would be impossible before the issue of rate notices next year. That would, of course, be a matter for the Valuation Department, and as the previous valuation was made in two instalments the next may be completed _in the same manner. Tlie essential point, in order to dispose of Mr Shacklock’s sweeping reference to our reply to “Valuer,” is that pending a new valuation (whether whole or ,in part, but certainly in part), it is impossible to state an exact figure as necessary to raise the same amount under the unimproved basis as is now raised under the annual value. If the basis could be ascertained with certainty the answer would be simple.— Ed. O.D.T.] TO THE EDITOR. Sib, —Will you kindly enlighten me as to bow many cities, boroughs, and counties who have made the change to unimproved value have gone back to the capital or rental value? I think if yon will answer this question it will be a great help to many who are wondering how they should vote at the coming poll. The opinion of a number of ratepayers has changed since the last pollpersonally, I intend voting for the unimproved, and would advise all who hold properties with about 20 poles to vote with me. Some are asking how will the rates be made up? Well, I say, from the sections that are now lying idle. I had several sections under the unimproved rating, and I soon got busy building houses on them, and created quite a lot of work, and sold every house at a satisfactory price. Now, had I held this land under the capital value it would not have been so necessary to build’. I should simply have held on for a rise. Now, we all know this is a wrong thing to do in a city._ That is why the unimproved value rating system was introduced.—l am, etc., Unimproved foe Progress. [Thirty-seven polls have been taken in cities, boroughs, and counties which have adopted rating on unimproved values. Of thege noils 25 have resulted in the rejection of the proposal to rescind the unimproved rating system and 12 carried the proposal to rescind the system.— Ed. O.D.T.]