Rating Systems And House Building

Chronicle (Levin), 8 February 1949, Page 3

Rating Systems And House Building

(To the Editor) Sir, — May I have space to examine some statements made by councillors at a council meeting in Shannon on February 1. In explanation, there is a poll on February 12 to decide whether Shannon will rate on the unimproved value or remain on the capital value system. The statement was that by getting- the value of the houses built since 1942 reduce'd to that year's value for rating purposes only, it would even up the difference between the rates on old and new homes. This means that these new homes may be valued at 23s per foot. I say may — the council can refuse to do this. Here are examples of three of the higher rated homes and'how they will be affected: — N. 1, i-acre and house, at present paying £19 0s ll'd, at 23s will pay £24; No. 2, 1/6-acre and house, at present £17 11s, at 23s, £16; No. 3, li acres, house and outbuildings valued at £275, at present £30 16s, at 23s, £23. Number two and three show a reduction. One shows an increase. The new valuation at present going on will put these section values up and t'he rates with them. Many and weird are the explanr,tions from the "stick-in-the-muds" as to why Shannon has not and is not progressing. In my opinion there can only be one reason — that is the present rating system. Unimprove'd rating would encour/age building as it has in Levin, and not prevent it as at present. ^1 am a building contractor, so perhaps have an axe to grind, but this prevention is brought home to me as perhaps to no one else in the town. I was asked to quote for a house and my estimate was £2400. The would-be owner was. satisfied, but was a bit wary of rates. On inquiry he found they would be £53 and, nee'dless to say, ,this house, which would have been a credit to Shannon, was not built, land we still have a section full of weeds. | One of the best building sites m 'the town, with a large building, ipays £16 16s. The returned soldier I in example number two pays £17 11s. A vacant section in the mid'dle of the shopping area pays ,£1 16s. With rates like this the owner can alford to hold it and so ■ prevent a progressive man from buying and building. The youth of Shannon has'.to go labouring or else to other towns for jobs, many of them not coming back. There are no opportunities for them to learn ci tr3/dc hGrc. Building restrictions will not last forever and, when they lift, factories ^that cannot be accommodatfed 'in the cities will be ■ 'getting out to the smaller towns. Big hrms will be prepare'd to put up factories and homes for workers in suitable towns. Shannon is the most suitable site between Palmerston North and Wellington,-) buL for -one thing, —the present rating system. They could not afford to pay the rates on a big building or .homes. Sir, I could go -on until I filled your paper with examples of the present unjust system, but will

conclude by saying that the ratepayers of Shannon have seen the iack of progress it has caused and I am sure they will be prepared toi give the unimprove'd sysoem a trial.1 If ..at , the end, of three years it is not a success, I will be the first to1 sign a petition to have the capital 1 value system brought back. Yours

etc., L. O. SAYER.

Shannon, Feb. 3.