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Hokitika Guardian, 16 September 1920, Page 2

When discussing the question of the roadmahing plant at the County Council meeting on Tuesday afternoon, Mr Murdoch twitted-some of his. colleagues with changing their yiews on the subject since it was. last up for consideration.- Both Mr Ward and Mr Chesterman admitted the soft . impeachment, I hut added they had done so under the

force of changed circumstances. The tightness and dearness of the labor mar- t ket were now very acute, and it ap- p peared that some reform had to be introduced, or they would not be able to j, carry on under the old methods. In n any case the members were not deciding a the question, they were merely formu- j lating a proposal to be referred to the ratepayers and by them decided at the ballot box. Mr Murdoch’s objections r were mostly financial. He believed the 1 Council should economise till it was 1 able to pay for the implements proposed out of revenue. He advocated 1 careful administration so 'that they migfit'convert the bank overdraft into a . credit balance. This is all very desir. ] able but is difficult of accomplishment, because local bodies inevitably indulge in the credit their bankers will afford them. The outlook for a substantial reduction in the floating debt of 'he Council is not very promising. Apart j from what the Treasurer’s statement j reveals in regard to the cost of oharit- | able aid, there is the increased c ost of labor and materials. And while there are these considerable outgoings, there does not appear much prospect of additional revenue. In the past that has been barely sufficient at times to carry on. Lately the rate was increased, hut that addition went immediately to satisfy the levies for hospital maintenance. In all these circumstances, if the Council is to wait till revenue permits the purchase of the proposed roadmaking plant, it will be long deferred The only prospect is by a loan, and that is a question for the electors to decide. The question has an important j bearing on the welfare of the County generally and the ratepayers should give , the question the fullest consideration from all points of view.

In the Treasurer’s report presented <o the recent County Council meeting there is a reference to rating on unimproved values. This is a well-known economic question, but its’ determination has to be based on local circumstances to prove its practical worth. In the report, the Council’s officer reviews the question as it affects the County as a whole, pointing out that the existing valuation would not be an equitable basis on which to base rating on unimproved values. According to all accounts the present valuation even for rating on capital valuations, is far from equitable, and it appears to be even worse when unimproved values are taken into account. That this is so is suggested by the examples given- In many instances owing to the inequalities the rating would be grotesque if applied on unimproved values. While therefore rating now on capital values might be defective, rating on unimproved values would le worse certainly. The Council should see to it that in the new valuations, the estimates of both capital and unimproved values should be made on a uniform | basis in respect to the two_ classes of values. The actual rating is one affect- [ ing the people—it does not affect the ! local body for the reason that whatever might he the incidence decided upI on, the aggregate sum to be collected remains the same. Still, the local body has a duty to perform to all. and that is to see that the basis of i|s rating should be as equitable all round as possible. The basis of rating is naturally important to the ratepayers, and they will remain always more or less concerned in its incidence. Rates like everything else, are rising, and with the increased costs all round they are. lot i likely to decrease readily. The tendency is to place mprp aqd more obligations on local bodies, and these liabilities incur additional expenditure. It is of im pojt?nce, therefore, to see the incidence of Joca ] taxation reviewed from time to time and as in principle rating on unimproved values has certain virtues, the inclination should be in that direction, al| other considerations being equal.