UNIMPROVED VALUE

Hokitika Guardian, 12 July 1927, Page 4

UNIMPROVED VALUE

RATING SYSTEM DENOUNCED. WELLINGTON, July 8. In view ill' the impending “drive” to secure ratiiij; on the unimproved viilue in other cities of the Dominion, nil ndress hy Councillor Martin Luckie to inemhers of the Eastern Suburbs League is interesting. “ You people of the suburbs and pals ticularlv the newer suburbs,” he said, “ wait until the eliect of the city revaluation is reflected in your rale | notices, not this year, but next year, j and you will ho sorry indeed that in the majority you voted in favour of j rating on unimproved values. Your rate demands will be doubled. Wellington was pi'anned, not by colonists, but by a company in London, and very many : shareholders never had the intention of, becoming colonists, and they never did. From this developed the absentee landlord problem, which became very acute about 1890 to 1900. To solve the difficulty and force upon the market the areas lying idle, a change was made to rating on the unimproved value in 1902. It was purely an expedient, and, like all expedients, proved unsound when it had achieved its immediate purpose.” XO VACANT LAND IN CITY. To-day, Councillor Luckie said, there was practically no vacant land in the city. It bad been foreseen that the result of rating on the unimproved values would fie the creation of “pocket hnmlkereheif ” sections. That had certainly come about in Wellington, and it was happening in Wanganui. With the return to the unimproved rating system the pressure would he harder. In the older countries rating on unimproved values was unknown. It was only in young countries that the expedient had been adopted. With the return to the system in Wellington city buildings would avoln all rating taxation, but owners of suburban property would pay, and owners of residential properties in the parts of tlie town first settled would pay higher stili’. Councillor Luckie said that this would be very serious for tbe labouring classes. Yet the Labour Party had been strong supporters of tbo change. They would find that their advocacy would have as one of its results increasing rates, and a heavy increase it would he. The poorer people in older residential areas would have to pay. Labour people would “ get it in the

neck” in growing; places like Auckland. Christchurch and ’vYellingtou. Councillor T.uckie i!welt on the fact that Auckland had always rated on the capital value. There was no setback in building in Auckland : on the contrary, Auckland now had the best buildings in New Zealand.