LOCAL BODY TAXATION

Hokitika Guardian, 18 September 1929, Page 3

LOCAL BODY TAXATION

PROFESSOR BELSHAW’S VIEWS

AUCKLAND, September 16

“ Local bodies in New Zealand have laid far too much stress on rates as a source of finance,” said Professor H. Belslfaw, Professor of Economics at University College, in an address to the Auckland Rotary Club. Professor Belshaw said an enquiry might be made as to the suitability of sources such as special assessments, betterment taxes, and land value increment taxes as operated in other countries. The speaker quoted figures showing the increases of the local body debt as compared with the national debt within recent years. He detailed the factors governing the increase. After an examination .of the position, certanj conclusions could be drawn, Professor Belshaw said. Local body indebtedness and annual loan charges had increased at a prodigious rate in recent years, far more rapidly than State indebtedness and loan charges. While it could not be proved that the present debt was too large if it was all' economically incurred it was evident that much preventable waste had 'occurred. The rate of increase was such as to give grounds for some concern, and it was important that- all projects involving indebtedness should bo more closely scrutinised, especially in view of the possibility of falling prices.

Stating that he was of opinion that too much stress had been laid on rates, Professor Belshaw said the whole system of local body income taxes as obtained in Germany, should be considered. In some countries much of what was raised by rates was collected as an increment to State taxation. It was not wise for New Zealand to tie itself down to one method of raising revenue, hut investigation of other systems should be carried out with a view to framing more adequate sources of finance.