RATING COMMISSION.

Waipawa Mail, Volume XLIX, Issue 149, 7 September 1928, Page 3

RATING COMMISSION.

FARM LANDS IN BOROUGHS. CLASSIFICATION PROPOSED. (Per Press Association). WELLINGTON, Last night. In the House of Representatives tonight the Minister of Lands laid on the table the report of the Commission appointed to report on the question of rating farm lands within boroughs. In a subsequent statement the Minister said: “The Government has been paying particular attention recently to the heavy rating liabilities of farmers in small boroughs and those who, although their properties are now excluded, are still having to pay a big annual special rate bill. The problem has been investigated by two commissions, one commission having particular reference to the borough of Otaki and the other being of more general application. The personnel of both commissions was the same. These commissions have gone very thoroughly into the question and' furnished their reports to the Government,

‘ ‘ These reports are of such farreaching consequence and universal interest that Cabinet deemed it advisable to have them presented to Parliament for general information. After going into the situation as it affected Otaki, it was found the con-, ditions there were purely local and that further inquiry was necessary in order to find a solution for the problem in the Dominion as a whole. Arrangements were then made for holding a further inquiry into the broad issue of the classification of borough lands for rating purposes and levying differential rates by borough councils. This inquiry was held mainly in the borough of Feilding and tlu* commission also sat for some time in Wellington. THREE CLASSES OF LAND. “Much evidence of an important nature from gentlemen who have from various angles given considerable thought to the vexed question of rating- was tendered to the commission, and after a careful inquiry it furnished a report, which broadly recommends the adoption of the principle of classification in those boroughs which have farm lands in them. I do not propose to go into detail concerning the recommendations contained in this report. Legislation on the subject will he brought down later in the session. I would, however, like to say that the commission, in recommending the universal principle of classification, has adopted the same three classes as in Otaki, namely : Class A.—Building land, i.e., land suitable for building purposes, and having a frontage to a road or street.

Class B.—Potential building land, i.e., land having a potential building value, and other than land included in Class A. Class C.—Farm lands, i.e., land used for farm purposes and not suitable for building purposes. “I would like it made clear that the adoption of the report will not mean the automatic classifying of all boroughs. It will he quite apparent, without my stating any particular cases, that there are some boroughs which do not contain farm lands and in which classification would not he practicable.

PROPOSED PROCEDURE. “The commission has stressed the fact that before classification is applied a careful inquiry in case of each particular borough concerned should be made, and it has recommended the procedure to this end. Generally the scheme of the report for adopting classification is as follows :

(1) A petition for classification from any farm in a borough.

(2) An inquiry to establish a prima facie case. (3 The appointment of classifiers with the power of a commission under the Commissions of Inquiry Act, 1908, to hold an inquiry and classify into the classes which I have mentioned. This involves also fixing the proportion of the rates to be paid by the lands in each class. (4) Facilities for the deposit and inspecting of the classification list. (5) Provision for objection by aggrieved persons or by the borough council concerned. (6) Provision for classifiers to hear objections, if any, and to amend the classification list if thought necessary. After this the classification list is signed by the classifiers and becomes operative on the following- April Ist. (7) Further provision is made for amending the classification list, hut in order to provide for some stability in the incidence of rating it is recommended that reclassification should not take [dace within a period of five years.

PRESENT INIQUITOUS SYSTEM.

“1 would like to stress the fact that the investigations into this difficult question have been conducted in a very thorough and impartial manner, and the evidence submitted makes it abundantly clear that under existing conditions farmers in boroughs -are not receiving ft fair return for the amount paid by them, by way of rates; in fact, having regard to the use they make of their lands and the impossibility of taking advantage of borough services, they are paying more by way of rates than is justified. Such matters as water supply, sewerage, street lighting and others are very necessary services to the thickly populated portions of boroughs, hut these services are quite useless to the majority of the farming community; yet they are often called upon to pay a higher proportion of the rates which finance these services than the people who are receiving them. I do not need to enter into details as to the iniquity of this position, as it is made abundantly clear in the commission’s report. I trust when legislation on the subject is brought down at a later stage in the session members will facilitate the placing of this legislation on the Statute Book.”