RATING ON UNIMPROVED VALUES.

Evening Star, Issue 14932, 19 July 1912, Page 6

RATING ON UNIMPROVED VALUES.

TO THE EDITOR. Sir,—A letter by Mr George S. Thomson appeared in your issue of yesterday complaining that the system of unimproved rating was burdensome to the working man. He criticised some figures supplied by Mr Withy. I do not presume to reply on behalf of that gentleman; but as I believe ho is at present not in Duncdin, and as I am one of those working in the interests of the reform in St. Kilda, 1 trust I shall be excused for venturing to answer the misconception of MiThomson.

To begin with, it is not a matter of conjecture, but an actual fact, that rating on unimproved value does relieve the properties of working men. This has been the- experience of every borough in New Zealand that has adopted the system. Without exception, the areas (taken as a whole) occupied by the working class have had their rates reduced by the change from the old to the new order. The reason is plain. Small houses, as a rule, are not built upon large and valuable sections. Although the gross valuo of the improvements on a cottage property is not large, the value relative to the site or unimproved value of the section is generally very high. No doubt it is possible to pick out a case here and there where the owner of a cottage standing on an extensive and valuable piece of land would pay more in rates under tho proposed system. General conclusions, however, must not be drawn from unusual and special cases. The test is not whether a selected workman will bo more heavily rated, but whether workmen generally will be so affected. I will ask Mr Thomson to give a few actual instances of cottage properties in St. Kilda that will pay more under unimproved rating, and foV every case he furnishes I will undertake to supply from 25 to SO cases where cottage properties *will pay less. I desire to say a word or two, before concluding, in reference to tho letter of "Anxious." He has bought a section in St. Kilda, and finds that if the reform is carried his rates will be increased from 17s Id to £1 19s Bd, This causes him grave anxiety. If his assertion is true, however, that he bought it to build upon at an early date, I cannot see why he should do other than rejoice. If he builds an ordinary house, his rates under the new system will certainly be raised to a figure much more than £1 19s Bd—to at least £3. Allow "Anxious" three years in which to build : then, until ho has built, the new system will increase his contributions to tho local revenue by under £3 10s for the three years. But after he has built he will save, for the 40 or 50 years that his house lasts, at the rate of £1 per year, or, in nil, £4O or £SO. So that " Anxious " ne'd only be anxious if he has bought his land for speculation. My anxiety to further the reformed system of rating is my excuse for dealing at such length with what may seem to be perfectly obvious. No argument, however fallacious, should bo allowed to go unanswered, lest any ratepayer be misled.—l am, etc., H. D. Bedford. July 19.