BOROUGH LOAN PROPOSALS-

Gisborne Times, Volume X, Issue 1003, 23 September 1903, Page 2

BOROUGH LOAN PROPOSALS-

(To the Editor Gisborne Times.)

Sir, —After reading the Mayor’s; letter in the H erald last night on the above subject, I have tried to ascertain whether the statement made is correct: viz., that at the very worst the total borough rates will not exceed 3s 3d in the £ on the annual value, including water, drainage and general rates. I must confess ; fail to find them correct ; but I do find the following : viz.,

“ that the present ‘ general rate ’ is Is 9d in the £, and cannot be reduced; for the needs of a growing population keep pace with its settlement. Besides, to say there is every prospect for a decrease indicates that the present rate of Is 9d in the £ should not have been made. However, the following are the rates that will in almost absolute certainty require to be imposed ; and if the Mayor does not know it all I can say is that he above all others ought to know. The point of uncertainty is the item. of Service rate,” which is variable in amount, running from 7 per cent, down to as low as 2 per cent., according to the annual value of each individual property. As instance, on His Worship’s own dwelling,” valued at £9O, he would pay 7 per cent., or very nearly Is od in the £ ; but on his shop, which is valued at £l6O, his “service rate” would be on £IOO at 3A- per cent, and on £6O at 3 per cent., making a sum of £5 6s or about Sd in the £. Take tho Masonic Hotel as another instance showing how the “ service rate ” varies : The annual value is £BOO. and this rate, according to the Act, will be £3B, or about 1 lid in the £, but purely business premises having the same annual value would pay only

half that amount, or £l9—equal to a fraction over od in the £. Seeing the majority of rateable properties in the borough appear to be residential and under £IOO annual value, it is a certainty these will have to pay a “ service rate ” of not less than Is 4d in

the £, which service rate His Worship entirely ignores. His Worship knows that £75,000 will bo inadequate to meet the whole cost of tho scheme, and that the Engineer estimates a sum roundly up to £90,000, and that interest and sinking fund together, will be 5 per cent., which, on £90,000, will total £4500 ; yet he will persist in trying to deceive the ratepayers that a 2s special rate on £38,000 will meet it, whereas he knows, or should know, a rate of 2s 5d or 2s 6d in the £ on the £BB,OOO will be needed. The outcome of the enquiry is that the following will be about the total rates in the £ that ratepayers will have to meet : General rate of ... ... Is 9d in the £ Service rate generally, not less than... ... Is in the £ Special rate of 2s 6d in the £

Total Borough rate ... 5s 3d in the £ Add Harbor Board rate Is in the £

Minimum gross total 6s 3d in the £ It is really inexplicable how His Worship can persist in asserting, as he does, " that at the very worst,” the total borough rates will not exceed 3s 3d in the £. It can only be assumed his statement i made in ignorance of the provisions of th Acts, and not for the sake of throwing dust in the eyes of ratepayers, which would imply, wilful, and designed misrepresentation. Therefore, whether the statements are the effects of ignorance or otherwise, it indicates a character no longer worthy of confidence, because so unreliable. His Worship is the person above all others who should accord to the ratepayers the fullest and most concise intelligence on this subject, and leave results to them.

It is noticeable His Worship quoted the figures given in your columns on Monday by “ Business Accountant," without in any way acknowledging them.—l am, etc., Interested.