NEW POLICY URGED

Southland Times, Issue 22490, 26 January 1935, Page 6

NEW POLICY URGED

SUBSIDIES TO COUNTIES. DE-RATING OF FARM LANDS. A subject which Mr R. Sim emphasized was of very great importance to all counties throughout New Zealand was introduced by him to the P ro “ vincial Executive of the Southland branch of the Farmers’ Union at its meeting yesterday, when he read a circular received from the Dominion secretary outlining the view of the New Zealand Counties’ Association regarding the de-rating of farm lands. It was advocated by that association that: (1) The petrol tax should be continued and should be available for road construction and maintenance matters. (2) In lieu of the present system of subsidy on general rates which now obtains, with a maximum of £2500 per annum for any one county, there should be instituted direct assistance in the form of a £ for £ subsidy from the petrol tax in respect of all roads other than main highways. The Dominion secretary, in his communication, added: “It was stated that if the policy were adopted it would be more equitable than the present subsidy on general rates and would have direct relationship to the expenditure on the roads themselves; At the present time the subsidy on local body rates is being paid out of the Main Highways Fund instead of out of the Consolidated Fund. The amount paid to counties last year was in the vicinity of £135,000.” In advocating that the suggested policy should be supported, Mr Sim said that under the old system each county received £2500 as its share from the Consolidated Fund. Under the new policy (if adopted), the Southland County, taking its 1934 rate of expenditure figures, would benefit to the extent of £10,500 which, he said, would go a long way towards de-rating farm land.

The chairman (Mr W. J. A. McGregor)): It is not total re-rating, but really the elimination of the £2500 subsidy for one of £ for £. It would be very advantageous to the Southland County. “All the counties are very keen that all the money collected from the motorists should be expended upon the roads,” remarked Mr J. R. Haigh. After further discussion, it was decided, subject to No. 1 (above) being altered to read: “That all taxation from highway purposes should be made available for road construction and maintenance matters,” that the executive should support the adoption of the association’s view and that the delegates to the Dominion executive meeting be advised to accord it like support.