UNIMPROVED VALUES

Dominion, Volume 8, Issue 2383, 12 February 1915, Page 7

UNIMPROVED VALUES

—9 : RATING SYSTEM ASSAILED. An inconclusive _ discussion on the question of the desirability or otherwise of rating on unimproved values ocourred at the City Council meeting last night. Councillor Luckie moved: "That this council is of opinion that the necessary steps should be taken at the earliest possible date to secure the taking of a poll, and decide whether or not the council . . shall revert to the principle of rating on annual values in lieu of the 'present system of rating on unimproved values."

Councillor Hindmaxsh suggested that' the motion should go to the bottom of the order paper. The discussion on such a motion could be only a more or less academio discussion on an economic question, which could be of no practical effect. The proper couree would be for Councillor Luckie to' get signatures to a petition to have a poll taken. Councillor Luckie. agreed that his motion should Stand down, but he contended that the counpil should .give a lead on the matter rather than wait for the citizens to take action. '

Subsequently Councillor Luctie had an opportunity to move his motion. He said that the adoption of the system of rating on unimproved values was agreed to by the council without due, consideration. It was introduced first of all tp apply to rural land?, a4d it was entirely unsuitable for suph a city as Wellington. . It was unsound eoonomioaJly, and very unfair in its incidence. He believed that the public of Wellington were very heartily dissatisfied with the present method of rating, which allowod half of the capital of the City to go untaxed. It was to this circumstance 'that high rente in Wellington were due. One result of rating on unimproved values was that owners of land in residential areas were compelled to build as many houses as possible on the : ground at their. disposal. Periodically values of buildings were written down, and the values of the land on which thoy stand were inoreased. Although the buildings depreciated in value, and probably in earning power, the owner bad- to pijy higher rates', It was by- no means uncommon to find buildings insured for more than the total valuation of the improvements on the property. Nobody paid any attention to the Government valuation of improvemente. The system had" made private gardens impossible and was congesting the .city. Half of.the property in the city was escaping taxation, and the half that was escaping was the half that was earning big annual incomes to its owners.

Councillor Buddie seoonded the motion. -

Councillor Hindmarsh said the effect of Councillor Luckie's proposal would be to allow owners to hold land for speculative purposes in the centre of the city without e'recting buildings upon it or doing anything to help the city along. All over- the world • the system or rating on unimproved valt ues'was growing m favour, and in Wellington a? olsewnore it was opposed by the Urge landholders; " . " ' • ' .The Mayor said he thought it a great pity that a division, should be token on such a question with euch a, thin Council. He would not support the motion, although he was in accord with some of Councillor Luckie's contenbelieving as he did i-hat much of the object of rating on unimproved values had been achieved. He did not believe wholly in rating on annual values, but he recognised that some owners escaped taxation under the present ! system. ' ■ ; On the motion of Councillor Frost, further discussion of the matter was j adjourned until next meeting.