The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, SEPTEMBER 3, 1927. THE RATING BURDEN.

Hokitika Guardian, 8 September 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, SEPTEMBER 3, 1927. THE RATING BURDEN.

!•Riches supplied by 1 lie Local Antlmriit i“.s’ Handbook show that the indebtedness of local bulb s has iik-rca.scd u"y rapidly, and has, in fact-, nun than doubled in Die eleven years, !>ay.s the Wellington “Post.” in so tar a-s local body loan capital is sunk in community services or in public trading enterprises that pay their own way, the ratepayer may regard it with,out fear; but it would come as a distinct shock to all payers of rates if millions of loan money that arc supposed to he going into profitable and self-re-demptive undertakings should prove hereafter to he wrongly invested and should become a charge against rates. To give examples: The borrowed money of electric power districts was on March 31-st. 1926, nearly equal to that of harbour boards, but as the bulk-purchase and distribution and sale c.f electrical power is supposed to he a business that pays its way, the ratepayers of the country are looking to the users of electrical current to shoulder the burden. So long as the users provide for the electric power boards a sufficient revenue, well and good, but wherever there is a. deficit heavy enough to involve the annual collection of a large sum in rates (as in Southland) the ratepayers will naturally object to carrying electrical losses in addition to the ordinary load of local government (borough council or county council), and lie will in that -o begin to take a new view of the ii.!. leasing indebtedness of local bodies. If electrical enterprises were unwisely undertaken, the ratepayer would find no more pleasure in meeting the deficit on uncommercial electrical lines t'v.m the taxpayer finds in making good (through subsidy from the Consolidated Fund) the losses on uncommercial railway lines that should never have been built. The reaction of the people against the increasing indebtedness of h cal bodies will probably be in proportion to the degree in which such indebtedness registers itself upon the rates. The user of light, or heat, or [>ower hag the right to buy in the ehcnp-.st market, a.s a buyer in a free market he can refuse to pay the rates at which a local body offers to sell him something, but he cannot refuse to pay the rates that a local body levies under the rating laws. It is here that the shoe will pinch. Excessive rates can depreciate land and landed property ju.st as surely as excessive rents can. AYhere taxes or rates are jointly

or severally oppressive, all business is handicapped. Tn the “Local Authorities’ Handbook, 1027/’ the Government Statistician supplies information of the increase in local bodies’ rates. He shows that the revenue of local bodies from rates, licenses and other taxes were in 1007 £1.338,363. or 01 8s 2d per head of mean population ; in 1926, twenty years later, it had

reached £3,473,369. or £3 18s 8d per

head. This included £5.039,645 collected in rates. The sucess of various local body trading enterprises—electrical, tramways and other—would re-

move from the ratepayer’s path the menace of new burdens; whether the profits of such enterprises will ever be used on a lare scale to reduce rates is another question. Many years ago the ratepvers of municiplities were told that the rents of munidipally-owned land would come to their relief: but still the rates mount up. through new levies. or through both. The ratepaver is now being told to reflect on how high the rates might have been, were it not for rents, licenses, and other sources of local body revenue. Tn 1925-26. while the rates of local bodies amounted to £5.039.645. the yield of “licenses, rents and other sources” was no less than £8.01.4.583. "What proportion cf this total was actual rents is not clear, but the tables in the “T ~enl Authorities’ Handbook’’ indicate that of the £8 014.583 of “licenses, rent* and other.” more than, half /P 1.690 - 4121 was collected in boroughs; and ns the ho’-nmrhs are credited with O'lleef.ino- £245.860 in actual rents, it would seem that in boroughs rents are

less than one-nineteenth of the nourate revenue. This suggest-* that rentals on borough reserves should lie more closely overhauled. As to the general question affecting loan liability, and in particular that relating to electric lighting, this district is in a most fortunate position. The policy foil owed here, has avoided any direful a | ilineney such as menaces other plate-., ant! fee Ilmt. relief t!7e rivtopnycMs should express much thanks. The general survey of the local body rating shows, however, that over the Dominion tus n whole, there is a huge levy and the old conrltisi 01 is again forced on us, that truly we are a much governed country.