BURDEN EASED.

Star (Christchurch), Volume XLIV, Issue 456, 18 May 1932, Page 7

BURDEN EASED.

Drainage Rates Slightly Lower. Though the reductions that have been made in the rates levied by the Christchurch Drainage Board for the present year do not aggregate a large amount they represent concessions that will be greatly welcomed by ratepayers and particularly by those in the outer sewerage area, where the burden is heaviest.

On a property of a capital value of £IOOO, the reduction in the interest rate in the outer sewer area from 1 21-64 of a penny in the £ on the capital value to lid represents a saving of 6s 6d. Last year the rate amounted to £5 10s Bd, and this year it will be £5 4s 2d. This is not a large concession, but it is in the right direction, and from now on it can be expected that the rate will become slightly lower each year. The reduction has been made possible chiefly on account of the board securing the benefit of the 10 per cent tax on debenture interest, but each new house that is built has its effect in reducing the burden on the ratepayers as a w’hole.

Ratepayers in the original sewerage area are fortunately placed as regards drainage rates, as most of the loans raised for this area have been paid off. Last year the arte for this area covering interest on loans and maintenance work was 5-16 d, producing £1 6s o£d on a property of £IOOO capital value. This year the rate is 19-64 d, which will produce £1 4s 9d, or Is 32d less.

The ratepayer in the outer sewer area does not escape with one rate only as is the case with those in the original'sewer area. He has to pay a maintenance rate as well and though the amount is not large it adds to his financial burdens. In the area known as rural Christchurch the maintenance rate was l-64d in the £ last year, but this year it has been doubled. The chief reason for the increase is that last year’s rate was sufficient for requirements and a debit balance has to be wiped out. Moreover the amount of the rate depends on the work that is carried out each year. A rate of l-64d equals Is 33d in £IOOO of capital value and l-32d equals 2s 7id. The increase of Is 3id must be offset against the reduction of 6s 6d in the interest rate in this area. There are slight increases also in the maintenance rates for the Spreydon, Avon and Heathcote areas, while reductions are made in the rates in the woolston and New Brighton areas. The change has been made in the rate for the Riccarton area. (Earlier reference to Drainage Board rates appears on page 4.)