REDUCING COUNTY RATES

Press, Volume LXXIV, Issue 22521, 1 October 1938, Page 18

REDUCING COUNTY RATES

NATIONAL PARTY’S

INTENTION

INCREASED SUBSIDY

TO COUNCILS

UNDERTAKING GIVEN BY MR HAMILTON

(press association telegram.)

INVERCARGILL, September 30.

The intention of the National Party to derate farm lands partially was explained by the Leader of the Opposition (the Hon. Adam Hamilton), in an address at Waikaka. “We have decided to give effect to a resolution passed by the county councils at their annual conference, that we should alter the basis of county subsidies,” said Mr Hamilton. “At the present time the county councils receive a subsidy of 5s in the £ on money collected in rates and spent on roads up to a limit of £2500. The county councils have complained that this is inequitable, as the bigger counties are adversely affected. They have asked the Government to abolish the limit.

“We have accepted this principle and will pay a subsidy of £ for £ on total collections, instead of 5s in the £. This will materially assist county councils to lower rates, which to-day are fairly heavy. We think the time has come for the petrol tax to bear a greater share of the cost of maintaining county roads. The higher subsidy will allow county councils partially to derate farm lands by from 30 to 40 per cent.” Mr Hamilton said he did not believe farm lands should be completely derated, because he considered it preferable for people to retain control of their own local affairs.