The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, NOVEMBER 18, 1931. THE DERATING PRINCIPLE.

Hokitika Guardian, 18 November 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, NOVEMBER 18, 1931. THE DERATING PRINCIPLE.

Thebe is an insistent demand throughout the country for the derating of land. This is brought about in the main by the high values of land in respect to which, looal body and general rating i& now very heavy in many districts. Apart from the ordinary looal body demands for rates for administrative and upkeep purposes, the land has now to bear hospital and harbour rates, while security rates u>r loan purposes are a further heavy impost. indeed, in parts of the North Island, special rates for interest on loans, is a burden now that prices for produce from the laud has fallen so /seriously. The plight of the man. on the land in many parts of the Dominion is a matter for serious concern. In respect to many settlers tliey have been forced to leave their holdings. This result has its serious aspect l'or general prosperity, for it is the returns from the land that are of so much help to the national progress. Those who have become interested in the serious development taking place have turned their attention to derating as some means to assist the struggling farmer, and the application of the principle cropped up at the late session. Ais a result a sum of money is to be appropriated from the highways funds .to be allocated as a subsidy on rate’s to County Councils- and ..road boards. The rate is to be 2s 6d in the £ on the. average amojunt'- of' the general rates collected during the past three years, and as a quid pro quo, the local bodies are •to reduce their rate levy or allow a rebate in the amount claimed, equal to 12$ per cent, of the year’s rate. The position can best 1)0 exemplified by the position in the... .Westland County, Here, the Council anticipating the move for derating, cut down the rate levy for this year by one third, equal to 33 1-3 per cent. The local ratepayers thus have had the advantage in advance and there has been expressions of thanks on the action of the Council. Under the proposal approved by Parliament, the local body here should receive a refund as against the concession made, and this should he a help to the Council in maintaining the reduced rate for next year also. The amount of refund has been estimated at about £SBO, as against the concession of £1,600 to the ratepayers in the reduced rate for the year. If in addition it is possible to continue, the lower rate for next financial year, then the Westland County ratepayers will receive considerable benefit from the application of the derating principle. To further aid the situation, several districts arc urging a revaluation so that the capital or unimproved values mav he reduced, and the rates fall through that means; but to make that system effective the local bodies must also curtail expenditure in keeping with the fall in revenue, or the opposite to that intended will result. 'Actually the saflest system for Abe payers of rates, is to see a drop in the rate levy, as was done in. the Westland County. There is ' then no doubt of the direct benefit to result at once to the ratepayer. The principal now introduced through Parlia-ment-establishes a precedent and the local bodies will be expecting a repetition of the subsidy in the future. The money is drawn from the highways funds provided for so largely from petrol taxation. This extra subsidy is intended also to aid local bodies in attention to back roads, which ordinarily receive no help from highways expenditure, and for an equitable allocation the amount is based on rates collected. The assistance to the local bodies is sure to be welcomed, for there are always demands requiring attention.