PAYMENT OF RATES.

Press, Volume LXVIII, Issue 20496, 15 March 1932, Page 8

PAYMENT OF RATES.

PROPOSED REMISSION OF PENALTY. POSITION TO BE CONSIDERED. A motion which proposed to make application to the Prime Minister for fresh legislation to enable a remission of the penalty for unpaid rates gave rise to an interesting debate at last night's meeting of the City Council during which it "was stated that under the law as it now stands the Council has no alternative to imposing the penalty. The information was also given to the meeting that the Council has an overdraft at the bank of £170,000, and is only able to carry on because of a ready response to an appeal for temporary loans. In accordanco with notice given, Cr. McLachlan moved: — That the Council arrange a conference of local bodies with a view to a combined application to the Primo Minister for a remission of the 10 per cent, penalty on the rates due for tho year 1931-32." New Finance Act Required. In doing so Cr. McLachlan said that was certain that all councillors would be in sympathy with tho proposal, as no one knew when the resolution was passed how bad conditions would later become. He intended to ask permission for the matter to be dealt with at the next meeting of the By-laws and Finance Committee, so that the opportunity could be given to ratepayers to obtain relief. He suggested that the Council should apply to the Government for a new Finance Act. to be passed to enable relief to be « iv « n - . . Permission was given as sought. The motion was seconded by Cr. E. R. McCombs. | Cr. E. H. Andrews said that much as he was in sympathy with the proposal he was afraid that Cr. McLachlan had left his action too late, as tho penalty was operative as from March 22nd. In any case, he did not think that a®y legislation passed this year could apply to the pres<wt position. He had to point out that ratepayers wero allowed twelve months iu which to iqake payment. He would rather see an opportunity given for ratepayers to pay their rates in instalments than the present proposal adopted. There was no doubt that it was the fear of a penalty which caused people to pay their rates as it was a fact that at present witli the due date only a week off only 40 per cent. <sf the total amount duo had been paid. But it was a peculiarity of City Council finance that only tho amount necessary to enable the municipality to carry on was struck. There was thus no chance of granting a rebate much as such a course might be desirable. Local Bodies' Position. The Mayor (Mr D. G. Sullivan, M.P.) stated that once a loual body passed such a resolution it had no option but to collect a penalty from all concerned. If Cr. McLachlan'a original motion had been carried, it would have placed the Council in an embarrassing position. He was afraid that it was too late to save the penalty now even should Parliament act at the earliest possible moment as suggested. A good many people seemed to think that local bodies could make by-laws and pass resolutions in regard to such matters, but. this was not the case as thev were in a etraitjacket as it were. Cr. A. E. Armstrong said that he was in favour of tho original motion as he considered it to be the duty of the Council to assist its ratepayers where it could. He asked if ho would be in order in moving that the Council should not impose the penalty. The Mayor: No. Cr. F. T. Evans thought that Cr. Andrews's suggestion of a rebate was an excellent ono desorving consideration. Those who paid their rates promptly wero deserving of a rebate such as was given by the Christehurch Gas Company when accounts were being paid. Overdraft Charge. Cr. M. E. Lyons said that ho would like Councillors to make it clear how tho Council could carry on if the rates were not forthcoming. It should not bo forgotten that the Council was paying 7 per cent, to tho bank .on an overdraft on rates already spent, but not yet collected. The Mayor: The debt to the bank at" the moment is £170,000. Cr. Lyons added that it would be fatal for the Council to kick away the lover it had in law to impose such a penalty. \ Cr. J. W. Beanland stated that it was an obligation to all citizens to pay their debts, and this was the position with tho Council. It was only because temporary loans had been coming in freely that tho Council had been enabled to carry on. He considered it a mistake to throw out a hope that any relief would be forthcoming. Mayor's Appreciation. fir. Sullivan stressed tho point tjiat the Finance Committee, or any other section of tho Council, or even the Council itself, could not act on any decision made to withhold the penalty. Legislation was required, and he wished it to be quite clear that ratepayers should be under no misapprehension about the question. Even if tho Gov> eminent took action he considered that the most that could be expected would be a slight extension of time and the inclusion of a clause giving a. Council powers of discrimination in the case of extremo hardship. As Mayor of the City he felt that tho people were very conscientious in the matter of rates payment. He was proud of the outlook of Christehurch people in that respect. (Hear, hear.) Cr. T. H. Butterfield said that he considered the suggestion of giving a robate on rates quite unfair, since it would give most aid to those who obviously were able to pay, and the peoplo who really needed assistance would not be given it. Cr. McLachlan said that he wished to stress the cases of those conscientious ratepayers who had striven for months to gather enough for rales payment and had failed to do so owing to "hick of income or a reduced income during the past three or four months. He would be glad of the early consideration of his motion. The motion was agreed to, and it was arranged that the Finance Committee meet this afternoon to consider the question.