LOSS OF RATES

Hokitika Guardian, 2 December 1931, Page 4

LOSS OF RATES

PROPERTIES MORTGAGED TO THE CROWN.

LOCAL BODIES TO CONFER

WELLINGTON, Nov. 20. According to a letter received by the Petone'Through Council this evening from tM°Mmister for Finance, the Government expects- 10/ib tj ditfs ’ ft-o’ hear their proportion of the loss of rates on properties mortgaged to the Crown.

The Hon W. Dowr.ie Sfewrrt advised 'that the policy of the State lending departments, in providing funds at low rates to facilitate the erection of houses and the opening up of the country for settlement had materially, though indirectly, assisted in contributing to the prosperity of loc i districts. It was not unreasonable therefore tha-fl the local bodies concerned should now in times of adversity bear a proportion of the loss of rates as the State stood to loo'-e considerably more than the local bodips in regard, to the properties concerned. The State lending departments worked on a particularly small martin of profit, the Minister said, and if any additional liability for rates in respect of mortagaged properties were incurred it would he impossible- to avoid passing the additional cost on to the general taxpayer or ratiing the rate of interest for future loar.s. It- was not proposed, therefore, to amend the existing law, After a brief discussion, it was decided to confer with the Lower Hutt Borough Council in the matter.