INCREASED RATES AND RENTS

Timaru Herald, Volume CXLI, Issue 20442, 12 June 1936, Page 11

INCREASED RATES AND RENTS

To the Editor of “ The Timaru Herald ” Sir, —The Timaru Borough Council has raised its general rate, but its estimates show that in spite of this Increase, it will have difficulty in meeting the year’s expenditure. Similar action has been taken by the Geraldine and Mackenzie Counties; and to anyone who follows the doings of our local bodies, it is fairly clear that this increase is only the prelude to further increases in the future. It may be timely to suggest, though that is not the object of this letter, that high rating will be a disaster to the district. One has not to look far afield to see instances where progress has been retarded for many years by high rating. The important question is, upon whom does the burden of this increase of rates made by the Borough Council fall? An answer is to be found in the provisions of the Fair Rents Bill which is now being passed into law. This provides that a “fair rent” is to be a fixed percentage of the capital value of the property, together with the outgoings for rates, insurance and repairs. If, therefore, the rates are increased, it is the unfortunate tenant who has to pay this increase because the landlord is entitled to get his percentage on his money after deducting the amount of rates payable. The Fair Rents Bill no doubt -is only enacting what has been the practice in the past, but its provisions should be studied by those who think that an increase of rates falls on the property owner or the landlord.—l am, etc.. F. J. ROLLESTON. Timaru, June 10.