Invercargill Borough Council.

Southland Times, Issue 4493, 4 December 1882, Page 2

Invercargill Borough Council.

SPECIAL MEETING. Friday, Ist December. An adjourned special meeting of Council this forenoon was attended by — His Worship the Mayor and Councillora McDonald, McKay, Finn, Dunlop, Moir, Roche, aud Basstian. The Mayor then stated that the subject for consideration was the bearing of the Rating Act of 1882 on the taxation of the borough, with a view to the adoption or rejection of the enactment, as the Council might see fit. Councillor McDonald had called his attention to the fact that under the neAv Act all Government property was liable to rating. The sum to be derived from such property in Invercargill was £300, and, as this was a considerable item, the adoption of the Act avjs a matter of importance. The only difficulty was that the question must be decided that day or held over for twelve months. However, in reply to an enquiry, the Colonial Treasurer had wired that the Government Avould pay the municipal taxes on public property, no matter which Act the Council rated under. His Worship admitted that he bad not looked much into the new Act, which had just been published, but some of its provisions had been brought under his notice by Councillor McDonald, and seemed so advantageous that he thought the Council would do well to adopt it. Councillor McDonald, to permit of discussion, moved that the borough adopt the Rating Act, 1882. In doing, so he stated that the clause enabling the borough to rate Crown lands with buildings thereon was a most important one. Another advantage was that the Act allowed the Council to rate on the capital value of property as against the present practice of " value to let." In this Avay it Avas possible to get at freeholders, many of them absentees, who Avere holding for better prices — for the" unearned increment" in fact — Avbich Avas largely derived from municipal improvements to Avhich these properties at present yield little, because they are not occupied. Another advantage to be gained by adopting the Act was that the Government Avould proA-ide a skeleton roll which Avould require only to be filled up. The mover also pointed out that even if the Act was adopted at that meeting- tbe appointment of a valuer, which had been looked upon as part of the question could be postponed. It might be urged that the Act Avas not suitable in that it only provided for a valuation every three years ; but that was not so, as powers were reserved to add to or take from the valuation of any property in the interim. Councillor Moir seconded the motion pro forma, but would like to know if this rating on capital A T alue Avould be general. He pointed out that in such streets as Dee and Tay streets that mode Avould be a decided loss to the borough as rents ruled high. Coucillor McDonald in explanation said that he had gone into calculations on the point, and found that there would be little difference. The change would principally affect absentees. Councillor Roche objected to dealing with an important matter like this in so hasty a manner, and Avas doubtful if the advantage spoken of Avould be realised. Councillor McKay scarcely kneAv Avhat to say. He bad been looking at the Act, r ind it struck him as having been framed to get at the speculators. The question with him was — would not the advantage of extra taxation on vacant sections be lost in other directions ? He was not prepared to vote on the question, Avhich might be, for ought he kneAv, one requiring A r ery close consideration lest the adoption of the Act should oppress some to lighten the burden on others. Councillor Froggatt held that it Avas only fair that those Avho did not improve their land should pay for the enhanced value of it consequent on town improvements. He was therefore in favor of adopting the Act. In some parts of the town it might reduce taxation, but it would be more equitable. Of course it would not do to take capital value as a basis, as it was possible to find sections in town covered with old buildings of very small value, but Avhich brought in large rents. He was of opinion, however, that it will be wise to get a fuller meeting of Council to decide the question. Councillor Finn expressed his approval of the motion. His Worship said that probably the strongest objection to the motion was that it hurried matters too much. Councillor McDonald said that his object Avas gained in having elicited some discussion, and so bringing the question, which Avas a very important one before the Council aud citizens. He would therefore, Avith consent of his seconder and the Council, Avithdraw the motion. This having been agreed to, the Council adjourned.