RATES AND STATE HOUSES

Hawke's Bay Herald-Tribune, Volume 81, Issue 19, 15 October 1937, Page 6

RATES AND STATE HOUSES

Change in Government's .Attitude PAYMENT DURING TERM Of TENANCY Th*e Government will pay rates on bouses erected under the State Housing Scbeme during- the time they are oecupied, irrespeetive of whether the rent is paid or not paid. This intimation, oue of considerable interest to all municipalities where tio Housing Scheme has, ; or is to he put ixito operation, wa* contained in a letter Teceived by thcf Hastings Borough Couneil last evening from the Hom W. Nasb, Minister of Finance, and appreciation was expressed of tte attitude adopted by tbe Minister ia iMs Matter for it involved a cliange ia tbe anticipated procedure adopted by tbe Department ra tbe matter of rates oa Crown property. Tbe question of tbe Crown 's Hability for xates was dealt in detail by tbe Town Clerk, Mr Noel C. Harding, in a special xeport tabled at tbe last meeting of tbe councii, and it was in reply to tbe comnient made by bim in tbis xeport that tbe Minister made bis announcement. f'My attention bas bcen drawn to a newspaper xeport of certain statements attrxbuted to you in reporting to your ceuncil on tbe question of xates on bouses sbortly to * bo erected by tbe Housing- Department" stated tbe Minister* f'The newspaper xeports you" as. stating . tbat 'It is praetically ceriain tbat, tbe Crown will pay rates provided only thafc money by way- of rentals is paid in fnll.by, tbe occupiers. In tbe event of any occupier being in arrears, tben it is likely tbat tbe Crown will pay only "a pexcentage of tbe xates in propoxtida to tbe xevertue xeceived ob. tbe property. ' go far'as concerns xates on houees bereafter erected by tbe Government under its housing scheme, tbese statemenfis are incorrect, tbe Government hiaving agreed to pay rates. on sufcb bouses for tbe per}od during whicH tbey are oecupied by tenants, irrespeetive of whether Tent is or is not paid. The amount of tbe rates payable by tbe Crcwn will bear tbe same pioportion to tbe xates general or special, leviable on aneb bouse property, but exclusive of any penal xates, as tbe pexiod of tbe xating year during which tbe bouse is oecupied by a tenant, irrespeetive of wbetber xent is paid or not, bears to tbe full xating year. . "As tbe bouses to be erected will be of a superior type, and will be let at tbe lowest possible xental, it may *>e safely taken for grauted tbat tbe bouses will be fully oecupied.'-* coueluded. Mr Nash. "I eonsider tbis reply of tbe utmost Mgnificance and value to not only tbis borongb but to all municipalities where tbe Government is, or intends to build bouses under tbe State Housing Scheme" said tbe "Mayor, Mt G. A. Maddison* "As far as I know, it is tbe first time tbat tbe announeement bas been made tbat tbe Government would bo responsible for tbe xates upon the bouses so loug as tbey axe oecupied. Mx Maddison said tbat, in commenting in liis xeport on tbe position of tbe Crown 's liability £or rates, tbe Town Clerk bad expressed only tbe logieal assumption tbat could be taken, and tbat was tbat tbe Housing Department would -adopt tbe same procedure as bad been followed by tbe Government in xespect of its other departmente, tbat of paying xates only in proportion to amount xeceived from tne rental on properties taken over by tbe Crown. "Tbat it was only a natural assumption is supported by tbe f act tbat sinee tbe last meeting tbe couneil bas re' ceived a letter from tbe Commissioner o£ Crown Lands xegarding a paTticulax property and payment of tbe rates in tfifr instance was made on tbe basis of tbepercentage of revenue xeceived from tbe rental during tbe year,'* continued Mr Maddison. Tbe Mayor tben read tbe followlng communication from tbe Commissioner of Crown Lands in respect of a particilar bouse property taken over by tbe . Crown as mortgagor: — "I bave to advise tbat during 1935-36 xent was xeceived for a period of 52 weeks, and tbe Department will therefore pay u fuH year's rates amounting to £4 4/-. During 1936-37 rent was received lor a period of 24 weeks, and tbe department wiil tberefore pay -24/52 of £4 15/8. wbicb amounts to £2 4/-. Tbe department, tberefore, admits a total liability of £6 8/-f and I sbould bo pleased to liave your assurauce tbat tbe councii wfil aceept tbis sum in full settlement. ' ' "I am very glad to bave tbis reply," coutinued Mr Maddison. "It is quite a new departure and I am sure tbat all municipal autborities will fully approciate tbe attitude of tbe Minister. At the eame time I feel tbat -tbis sbould be tbe attitude adopted by tbe Government in xespect of all Crown lands. "In my opinion all State department^ sbould bs placcd on tbe same footing and in tbe same position as private property owners in regaxd to rating, and tbat tbo attitude - adopted by tbe Minister sbould apply to tbose bouses taken over by tbe State Advanees offico and otber depaTtments," be added. Tbe councii decided to express to tbe Minister its appreciation of tbe attitude be baa adopted in this matter aud to tbauk Mm for tbe assurauce given.