RATES ON CROWN LANDS

Taranaki Daily News, 13 March 1935, Page 11

RATES ON CROWN LANDS

MORTGAGE CORPORATION PROTESTS FROM LOCAL BODIES. NO ACTION IN EGMONT COUNTY. On the casting vote of the chairman, the Egmont County Council yesterday decided not to support the Christchurch City Council in its protest against the Mortgage Corporation Bill on the grounds that it would add to local bodies’ difficulties in collecting rates. The Christchurch City Council notill fled that it had written to the Prime Minister protesting against the passing of any legislation which w'ould have the effect of increasing the difficulties that local bodies now had in collecting rates. The letter said the city council had been placed at a very serious disadvantage through the State Advances Department repudiating liability for rates, and it would now appear that the proposed Mortgage ■. Corporation Bill would further increase the council’s difficulties, as it was apparently the intention that properties covered by the provisions of the Bill would be recorded as being in the same category as properties over which the State Advances Office had a mortgage, with the result that a very serious loss was threatened in the rates. The council was asked to, support the protest. Cr. Willcox: The protest should be supported. The Chairman said he would support the protest if he thought it was going to be beneficial. However, the problem was a very difficult one. The Government was doing what it considered right and the council should help rather than hinder the Government. Personally he was not sufficiently conversant with the provisions of the Bill to tell whether it would have a detrimental effect on rate collection or not. The Hon. J. G. Coates had stated that the Bill would not have the effect that was anticipated. The council would be well advised to look on for a little while and see what was the effect of the legislation. Cr. Collins: I think so too. . PROVISIONS OF BILL UNKNOWN. The chairman said he did not like to pass any resolution without knowing what the actual effect of the legislation would be. If any councillor knew what the actual provisions of the Bill were, he would ■ like to hear them explained. He moved that the letter be received, and Cr. Farquhar seconded this. Cr. Willcox moved as an amendment that the council support the protest The council had been complaining for a long time about the action of the State Advances Department in refusing to pay rates on properties over which it held mortgages after the owners had gone off the properties. Others who held private mortgages had to pay. There was certainly a real grievance. The Mortgage Corporation Bill looked like perpetuating the evil,, even if it did not accentuate it. He agreed that the council should not hinder the Government, but where it differed from the Government in principle it was certainly entitled to help another local body in its protest. Most of the Government legislation was legislation of expediency. Cr. Tosland was emphatically of opinion that no land should be exempt from payment of rates under any circumstances. If the protest was to be forwarded to the Minister objecting to any further exemptions of mortgagees from payment of rates he would second it. The chairman pointed out that at one time the Government paid local bodies some of the rates on properties mortgaged to Government lending institutions. A Taranaki local body, however, fought the case and Egmont county gave them a small contribution towards the cost, with the result that the Government introduced legislation exempting Government lending institutions from the payment of all rates on mortgaged properties. “TOO PESSIMISTIC.* Cr. Collins did not think the council should move until it knew the actual position. The Government should be given an opportunity of putting it into operation. He considered that councillors were too pessimistic. The council would be ill advised to offer a protest as it was an attempt to better the position of the farmers. There should be no attempt to kill the Bill. Cr. Holmes: Suppose the corporation loaned money to 75 per cent of the ratepayers in the Egmont county, how would the council collect its rates then? The chairman: There is a misunderstanding. The exemption in rates will only apply to cases where such exists before the corporation takes over the ntortgage. It is no use drawing a red herring over the scent. Cr. Willcox said they should not sit still and let the Government pass what legislation it liked without protest, though he thought the Bill would pass despite any protest. Opposition was valuable in exposing weaknesses. Cr. Young admitted that he did not understand the Bill. The council, however, wanted all the rates it could get Cr. Lilley thought there was a danger of the corporation securing the majority of mortgages. The chairman said it simply meant that Crown mortgages now exempt from rates would be handed over to the corporation. The council had protested against the non-payment of rates on several occasions and had been told if the Crown had to pay the rates it would simply mean coming back on the ratepayers for the money. Immediately the Crown was 1 defeated in one aspect it brought in something more drastic. He had read what Mr. Polson, the Prime Minister and the Minister of Finance had said on the Bill, and the latter had said that it was a definite attempt to improve the position of the farmer. The amendment was lost bn the casting vote of the chairman, Crs. Willcox, Tosland, Lilley and Holmes voting for It and Crs. Collins, Farquhar and Young and the chairman against. The resolution was then carried.