LOCAL BODIES' RATES

Press, Volume LXXI, Issue 21415, 6 March 1935, Page 12

LOCAL BODIES' RATES

# PARTIAL EXEMPTION OF CORPORATION CLAUSE DEBATED IN HOUSE [From Our Parliamentary Reporter.! WELLINGTON, March 5. The vexed question of the effect on local bodies of the partial exemption of the Mortgage Corporation from rates was argued in the House late tonight, when this contentious clause in the bill was reached. The clause seeks to give to the corporation the same degree of exemption on mortgages transferred from the Crown as is enjoyed by the Crown itself, and in earlier discussions of the bill many members had urged that the effect would be to throw an unfair burden on local bodies. It was stated then that the total involved in rates unpaid on properties which had reverted to the State was about £500,000: but the Minister for Finance (Mr Coates) indicated that he was not willing to revise the clause, as the budget would not stand the extra load involved in {living effect to the suggestions that local bodies should be reimbursed. When the clause was reached tonight. Mr Walter Nash (Lab., Huttt moved an amendment the effect or which was to make the corporation liable for rates and taxes to the same extent as if it were an incorporated company.

Ruled Out of Order The Chairman of Committees (Mr J. A. Nash) ruled the amendment out of order; but members took advantage of the opportunity to speak on the clause itself. . Messrs W. Nash. D. G. Sullivan (Lab., Avon), and A. E. Jull (G, Waipawa) urged the Minister to change his mind; but the Minister, replying, said that the clause was being used to clear up a difficult point which had been discussed on several occasions between the Government and representatives of local bodies. About £500,000 would be involved if Parliament insisted that the Government should find all the rates due on mortgaged property under the State Advances Department. Mr 11. M. Rushworth (hid.. Bay of Islands): Should the local bodies be responsible for thai? Mr Coates: Which is the most urgent, case? We have many urgent questions to consider, and if wo load our budget up with half a million we are going to find it impossible to attend to more important matters. Mr Sullivan: You are collecting rents for these properties. What have you to say to that? Mr Coates: It is quite clear in any case that neither arrears nor current rates should be the responsibility of the Mortgage Corporation. Minister's Main Point The Minister said his main point was whether, by reason of the fact that norma] precautions were being taken to protect the corporation, the matter of a payment between the Crown and local bodies was affected. Mr Sullivan: Other people pav their debts. Mr Coates: The law of this country says it is not a debt for the Crown. Mr H. G. Dickie iC, Patea): Cannot you compromise? Mr Coates: The moment the Crown accepts responsibility for rates as a mortgagee, it is in for the lot. The House rose at 12.15 a.m.