SUBSTANTIAL RELIEF

Taranaki Daily News, 19 February 1935, Page 9

SUBSTANTIAL RELIEF

NEW PLYMOUTH LEVIES OLD REDUCTIONS CONTINUED MAYOR REVIEWS THE POSITION. FORMER BENEFITS RETAINED Though a further reduction in rates could not be made, it should not be overlooked that the substantial reduction in rates made in previous years would be continued, said the Mayor, Mr. E. R. C. Gilmour, when discussing the estimates at the meeting of the New Plymouth Borough Council last night. . He quoted figures to show that the continuance of these reductions meant a very substantial relief from the burden.

The high peak of rating was reached in the year ended March 31, 1933, he explained. This was due to several reasons, the principal of which were as follows:—(a) The New Plymouth Harbour Board, owing to declining revenue, found it necessary to commence the collection of a harbour rates, the levy for that year being £9BOO. (b) A large amount of the £172,000 drainage loan having been raised, the special rates on that loan were materially increased to provide for the additional interest and sinking fund charges payable, (c) The great decline in tramways revenue made it necessary, notwithstanding the great reduction in running expenses, to collect approximately £7BOO in tramways rates. Since then, owing to the reduction of interest charges on the public debt of the borough, and by using up certain reserves and reducing expenditure, it had been found possible to make a reduction in the rates each year. For the year ended March 31, 1934. in spite of an increase of £3200 in the harbour rate, the council was able to make a reduction of one and one-eighth pence in the £l, representing a relief to the ratepayers of approximately £6BOO. For the year ending March 31, 1935, the Harbour Board reduced its levy by three-eighths of a penny in the £1 and the council found it possible to make a reduction of one farthing, the two together making a reduction of five-eighths of a penny in the total rates. REDUCTION IN VALUATION. In that year also a substantial reduc 7 tion was made in the Government valuation upon which the rates were struck owing to the Urban Farm Land Rating Act coming into operation and owing to a large number of properties having been resumed by the Crown. Although the actual reduction to the individual ratepayer was five-eighths of a penny in the £l, the reduction in the rates for the year in question, that ending March 31, 1935, was £6900 in round figures. As the reduction of £6BOO made the previous year was continued, this meant a reduction of £13,700 compared with the amount levied for the year ended March 31, 1933. Adding the reductions together, it would be found that for the three years’ period ending March 31, 1936, very substantial relief to ratepayers would have been given, and this during a time of great financial stringency when relief was most desirable. The figures are as follows for the years ended March 31:— 1934 £6BOO, 1935, above reduction continged £6BOO, further reduction .. made £6900, 1936, above reductions both continued £13,700; total, reduction in rates for the period, £34,200. “I set cut these figures for two reasons,” said the Mayor, “firstly to exemplify the fact that a small reduction of the rate in the £1 made each year means a very large sum when translated into £.s.d., and also a very large reduction in the revenues of the. council. Ratepayers’ must bear this in mind when urging that works are urgently required in their localities. It is impossible to have it both ways. If the rates are reduced, then expenditure on new works must necessarily be reduced and this is the reason why the street works vote was drastically reduced some three years ago. My other reason for mentioning the figures is to express my gratification that the finances of the council have been so carefully administered for a number of years that it has been found possible, without entirely hampering the works of the .council, to return to the ratepayers in the way of reduced rates such a large sum as £34,200 in three years.” SCHEDULE OF RATES. The borough treasurer submitted a schedule of the rates to be collected for the year ended March 31, 1936, showing that the general rate of £21,411 18s Bd, including trams and bus fund instalments £lBB6, would be an increase of £3903 18s Id, compared with the current year. The harbour rate (£9369 7s 6d) and hospital rate (£6802 Is 2d) would be unaltered. The following would be the amalgamated rates over the whole borough: 1, £553,000 loan (streets, etc.), £8760 12s 7d (decrease £674 Is 3d); 2, £553,000 loan (tramways), £3414 5s 3d (decrease £1561 11s 3d); 3, £126,700 loan (conversion), £6457 19s lOd (decrease £1667 8s 7d). Special water rates, etc. (£9200) would be unaltered, and the sanitation rate (£1200) would represent a decrease of £6OO. In analysing the schedule, it would be found that while it had been possible to reduce by £4503 the amount to be collected-by way of special rates to pay I interest and sinking funds on loans, it has been necessary to increase the general fate by £3903, said the Mayor. The reduction in special rates was only possible by eating into the interest reserves. He mentioned this fact last year and pointed out that it would not be possible to continue this particular reduction beyond the year ending March 31, 1936, although he was hopeful that the total reductions already given might be maintained by certain adjustments in other directions.

The increase in the general rate was considered advisable in order to provide for a grant of £lBB6 to be made to assist the finances of the tramways and bus account and to provide for the widening of the Breakwater Road. To some extent this grant would be a book entry. The schedule of rates provided for a reduction of £1561 in the tramways rates. This rate was required to pay the interest and sinking funds on the tramways loans and could not be used for any other purpose. Owing to the great fall in its revenue, common to all tramways undertakings in New Zealand, the tramways finances were very unsatisfactory, more money being required to meet the depreciation charges, and its appealed to him that the most feasible way to do this was to increase the general rate and make a grant for the amount required, £lBB6.