LOCAL BODY RATES

Otago Daily Times, Issue 22504, 23 February 1935, Page 20

LOCAL BODY RATES

MORTGAGE CORPORATION’S LIABILITY i . EXEMPTION PROM PAYMENT CRITICISED. (From Odb Parliamentary Reporter) WELLINGTON, February 22. The executive of the Municipal Association has submitted a letter to the Minister of Finance with reference to the Mortgage Corporation Bill as it affects the liability for rates. The letter, which is signed by the president (Mr D. G. Sullivan, M.P.) and the secretary (Mr F. F. Martin), says: “We have been instructed by the executive of the Municipal Association to make representations to you on clause 47, sub-section 2, of the Bill, which exempts the corporation from the payment of local body rates in respect to mortgages transferred to it by the State Advances Department to the same extent as that department had'exemption prior to such transfer. At several recent Municipal Conferences the subject of the Crown’s exemption from rating liability in its character as mortgagee has been a burning question, and some time ago a joint deputation from the New Zealand Counties’ Association and this association waited upon the Government and urged strongly that the Government departments should enjoy no immunity from rating liability which private mortgagees do not enjoy. If, however, this section of the Bill is passed in its present form, the position of local bodies will become even worse than it is at present. The corporation, although it is not a department of State, will enjoy the same privileges as the Crown does, and, moreover, the Government will no longer be concerned with the plight of local bodies, which will possess no remedy against the perpetuation of 'the existing state of affairs. The executive, therefore, strongly urges that clause 47 of the Bill should be amended so that at least the corporation will become liable as mortgagee for all local body rates which become due from the time when such corporation takes over the securities from the State Advances or other departments. . Wo trust you will see your way to amend the clause to give effect to the urgent requests of the local bodies affiliated to this association.” •