UNPAID RATES

Southland Times, Issue 21649, 10 March 1932, Page 7

UNPAID RATES

QUESTION OF PENALTY

AMENDMENT TO ACT SOUGHT INVESTIGATION PROMISED (From Our Parliamentary Reporter.) Wellington, March 9. Penalty on rates formed the subject matter of an urgent question addressed to the Prime Minister in the House of Representatives this afternoon, an amendment to the Rating Act being asked for. Mr A. Harris (Govt., Waitemata) on behalf of himself and Mr A. M. Samuel (Govt., Thames) asked the Hon. G. W. Forbes whether he would this session introduce an amendment to Section_ 76 of the Rating Act giving local authorities discretionary power regarding the imposition of the 10 per cent, penalty on rates in arrears.

Mr Harris said that in cases of hardship arising out of the depression," many local bodies desired to extend leniency to ratepayers but could not do so owing to the provisions of the Act being mandated. Mr Forbes replied that section 76 of the Act authorized local authorities to add an additional 10 per cent, to unpaid rates, but that did not impose any obligation on them to do so. Any local body could therefore refrain from adding a penalty for such period as was considered reasonable. He said he understood that several local authorities were refraining from acting in any harsh manner. The Government was prepared to consider making provision along the lines suggested if representations were made by the Counties Association, the Municipal Association and other similar bodies.

Mr Harris: Local bodies have to advertise that the penalty will come into operation in a certain period and there is no discretionary power once they have advertised. The Prime Minister said he would look into that aspect. 1