The Gisborne Times PUBLISHED EVERY MORNING. THURSDAY, APRIL 9, 1908. THE BOROUGH VALUATIONS.

Gisborne Times, Volume XXVI, Issue 2161, 9 April 1908, Page 2

The Gisborne Times PUBLISHED EVERY MORNING. THURSDAY, APRIL 9, 1908. THE BOROUGH VALUATIONS.

In all probability the Borough Valuer is well satisfied with tho results of this, year’s assessments in that tho valuations have been raised from £78,370 to £90.500, whilst- tho property owners have apparently shown their approval of the respective.—allocations by -refraining from making objection in the Assessment Court. As a matter of fact there were only four objectors, which must bo considered exceedingly small when tho large number affected is borne in mind. This, however, is after all only a superficial aspect. There is in reality a very widespread impression that present values aro too high; but the average property owner hesitates to take advantage of the opportunity to object in open Court simply for the reason that ho does not wish to prejudice his chances 1 of selling his property, should such a course at anytime become necessary, by letting the general public into his confidence concerning the price it cost him. Therefore, lie pays his tax but does so with very bad grace, feeling tho whole time that lie has been unjustly treated. Incidentally, it may bo mentioned that tho attitude of-tho Assessment Court is not invariably of such a nature as to induce the public to fully utilise it, and tlio case of Mr lan Simsoh appears to bear this contention out. It may beadmitted tint Mr Siuison, as one who is at all times impatient of authority and Occasionally blunt of speech to an unpardonable degree,, conducted his case in a manner that could justly cal! forth a reprimand from the- judge, but tin's fact should not have been permitted for a moment to prejudice his case. In this respect the applicant was sworn and quoted certain .facts and figures in support of his objection. He showed that his property was leased at sixty pounds per year whilst it had been assessed on a rental value of seventy pounds per year. Tho 'Borough valuer might possibly have been able to -rebu-tt the position as placed by the applicant, but he was not asked to do so, the Court very curtly ruling “valuation sustained.” Now Mr Simson wonders whether properties aro rated on the amount they actually rent’for when put 'in the open, market or upon the rental which the Borough valuer thinks such properties should return to their owners. A good many others will be similarly mystified. However, reverting to tho general issue it is not'too much to say that there are scores of ratepayers who are at present submitting to valuations to which they would object most strenuously but for the fact that they do not wish to mako their private affairs public. This is an important factor which undoubtedly constitntcs a notable ’ weakness in our present valuation system. By, its existence at becomes quite possible for a Borough valuer to advance valuations as a whole to a degree that is not actually warranted, and wo are satisfied that such is the ease in regard to Gisborne monts. It is, of course, true that the town is going ahead and tho in* trinsic value of town and suburban property *is increased by every additional unit* that is added to tho population. When it is remembered, however, that town land in Gisborne is as expensive as in almost any town in the Dominion, with the exception of Wellington, that the population doss not greatly exceed 0,000 and there is ample room for expansion in every direction, it may be doubted whether there will be any substantial increase in local property values for some time to como. In fact, nothing but tho elasticity of a rapidly increasing trade could support values as they are. Under these circumstances, it would certainly seem that a valuer in making what should bo a conservative estimate of the value of Borough property, should be extremely chary of placing too much reliance upon what may, after ail, be exaggerated ideas of values. The. marked influx of population from outside sources in the last year Ins resulted in a keen demand for residences and business premises hiul for the moment it is difficult to keep pace with the demand. Desiiite the large number of buildings that liavo been erected the newcomer finds it a matter of the greatest difficulty to discover a house to let and the natural consequence has been that rents have advanced very materially. Thus a house which could be obtained 18 months ago for 15s a week will now command £l, but a bank manager would not bo likely to increase h’.s j estimate of the security embodied in ! that property to a similar extent, j yet this is what appears to bo the , course followed by our Borough v:i- ! liier. It is only a question of time 1 when the builders will have relieved the present acute position in r;v

gird to tho scarcity of houses and then it is quite possible that rental values may recede. Putting the matter in a nutshell, tho present system has a tendonoy to inilat.o values to a boom level, and this is a course ■til*;’.’, is to bo deprecated in the general interests of tho community. Another aspect is tho relationship of the valuations to tlio rates. Tho r■>'•<*■ payer who feels that his burdens arc ul.ro.uly heavy ouougli and that ho cannot well face tho additional cost of, harbor, drainage and other schemes that aro in the air is comforted with tlio assurunco tlut ho is only paying so much, or rather, so little, in the pound, and is told that, compared with rates in other towns, his aro really very low. Tho point which in not emphasised by tlioso who aro working enthusiastically to get somo row scliomo put through is that half a crown on a high valuation may be equivalent to fivo shillings on a lower one. Tho question is ono that might with advantage bo discussed by tho Borough Council with a view to ascertaining, whether the present valuations are based on such a standard as would bo approved by a committee of commercial experts.