SOLD-UP PROPERTIES

Hokitika Guardian, 17 April 1931, Page 7

SOLD-UP PROPERTIES

ALTERATION OF THE LAW WANTED. WELLINGTON. April 13. A very serious position has arisen for local bodies in consequence of a recent decision in which it has been held that rates on properties on which there is a Government mortgage cannot he made a lirsb charge, upon a property. The only safeguard a local hotly has in regard in unpaid rates is to make them a. lirst charge on the property, and it matters not how often a property may change hands, the rates are still a charge against it, and as a last resort, the council may cause the property to he sold, and it then has the lirst claim upon the proceeds up to the amount of the rates due. This provision still remains in regard to property upon which money has been raised from anyone other than ihe Government, -hut upon all properties upon which there are Government mortgages it is now belli that the Government has first claim, if there is no surplus after the Government’s claims am mol the. local body receives nothing. At least it cannot recover general rales nor rates which have boon levied since the mortgage was placed on the property. It can, however, recover special rates which were levied prior to the mortgage, The matter was discussed by the Lower Hut( Rorough Council last evening, and the Mayor (Sir A. E. Roberts) pointed out that, on account of the Government subdivisions, Lowe r Hutt was exceptionally badly bit by the decision. Councillor F, Campbell said the position was most unfair; the Government should he in the same position as private lenders, it would he impossible for local bodies to carry on under tin circumstances. He suggested as a remedy the cutting off of borough services from properties on which them wore unpaid rates. The Mayor said that lie was of tin opinion that the only remedy was immediate legislation to alter the position. and on his motion it was decided to request the municipal and counties associations to ask the Government to remedy the matter at once.