RATES ARE UNSECURED.

Waikato Times, Volume 118, Issue 19758, 13 December 1935, Page 9

RATES ARE UNSECURED.

STAY ORDER EFFECTS. COUNTY COUNCILS PREJUDICED. INJUSTICE OF POSITION. The far-reaching effects of the 'Mortgagors’ Final Adjustment Act in ranking local hotly rales with other unsecured debts has met with considerable opposition from county councils throughout the Dominion. This week Iho Mnnawalu County Council petitioned tlio Minister of Finance to remedy the injustice of the position and from enquiries made throughout the Waikato yesterday the feeling appears to he general among the executives of local bodies. It was explained toy Mr C. F. E. Barton, clerk to the Waikato County Council, that in cases where a stay order was issued the local hotly became an unsecured creditor in respect to unpaid rates owing by Die creditor and was precluded from taking any further action under the Rating Act in respect of enforcing its claim for unpaid rates during the term of Die | order. | It is understood that any other per- j son from whom rates could he recover- | ocl pursuant to the provisions of Die Rating Act is protected under Dds j legislation to the same extent as the | mortgagor. The local body will tic required to accept payment of rates ! only from the time when Dm budgetary period comes into operation and after certain charges have taken precedence. Arrears of rales or rales levied for Dm I current year and due al. a dale prior to ! Dm slay order being granted will not bo recognised in Dm current year’s charge aurainst revenue derived from farm lands. Local Body Losses? As in Manawalu several cases of stay orders have come before loeal bodies in the Waikato district, and in I sumo eases where arrears have, rivielii'l a substantial amount Dm county; may suffer heavily. || lies Die right In oppose the granting of a slay order bill even under these circumstances the increment which would be received along with other creditors would bn 1 very small.

In some quarters tlie application of tiie stay order is regarded as a further step towards the exemption of Government interests from rating liabilities. It was pointed out by several authorities in local body administration that hardship had been imposed upon county councils by the exemption ol' crown and native lands from the ordinary measures directed to control noxious weeds and it was considered that Hie trend was similar in regard to slate mortgagors. No local body in the Waikato lias as yet taken any action to have the position remedied but it is possible Hull, as the burden of the losses may become heavier, they may follow the lead set by Hie Afanawalu County Council and seek an amendment to Hie existing legislation. ____________ TiJ