WILL CITY RATES BE INCREASED ?

Star (Christchurch), Issue 18466, 18 May 1928, Page 4

WILL CITY RATES BE INCREASED ?

CR. SULLIVAN SAYS IT IS TOO EARLY FOR definite statement. While it is the strong wish of the City Council that there should be no increase in the general rate for the current financial year, Councillor D. G. Sullivan, M.P., chairfnan of the Finance Committee, stated this morning that it was impossible to give a definite assurance that there would not be an increase until the whole of the estimates were considered by the Finance Committee, Every endeavour would be made to prevent any increase, said Councillor Sullivan, but it was too early to make a confident statement oil the matter.

With regard to the use of the money that was coming to the council from the petrol tax, and which was paid to it quarterly by the Government, Councillor Sullivan said that the council had already decided by resolution to earmark that money, as well as the heavy traffic fees, for the purpose of meeting the interest and sinking fund on the proposed roading loan of £220,000, the ssheme being that by using the money for that purpose and by transferring the amount now collected for liquidating the antecedent liability, which would be finally accomplished this there would be no need to increase the rates above what they are at present. The amount collected for paying off the .antecedent liability was £II,OOO a year, and it was proposed to use this sum in the future, together with what would be received from the petrol tax and the heavy traffic fees* for the service of the roading loan. Councillor Sullivan said it was doubtful whether it would be possible to proceed to any extent with the carrying out of the roading scheme during the current financial year, and if that were the case the money received from the, petrol tax this year would, he hoped, be devoted 'to other street reconstruction not included in the loan schedule. Before that could be done, however, the special consent of the Minister must be obtained. The council already had the Minister’s consent to use the proceeds of the petrol tax to the service of the roading loan. “My remarks regarding the unlikelihood of there being no increase in the rates apply to the general rate only,” Councillor Sullivan added. “The council, of course, has to collect rates on behalf of the Fire Board, Drainage Board, Hospital Board and other local bodies, and the Hospital Board has already notified the council that its ievy has been increased by about £1200.” Councillor Sullivan said that he had received many communications from ratepayers complaining of the imposition of the ten per cent penalty on overdue rates, and he had noticed a number of letters in the newspapers on the same subject. The writers seemed to be under the impression that the penalty was imposed by a hard-hearted council which had no sympathy with the difficulties of individual ratepayers who found it hard to pay their rates on the due date. As a matter of fact, the council had no option in the matter but was bound by law to collect the additional ten per cent and had no power to remit it. He hoped that this statement would remove the misconception in the minds of many ratepayers that the act of imposing the penalty was an arbitral decision of the council.