NATIVE RATES

Rotorua Morning Post, Volume 3, Issue 714, 14 December 1933, Page 5

NATIVE RATES

(Press Assn.-

A HAZARDOUS SECURITY MAKING DIFFICULTY FOR COUNTIES LEGISLATION WANTED

— By Telegraph— Copyright).

Gisborne, Wednesday It appears probable that unless the system of collecting rates for native lands is improved any local body directly or indirectly dependent upon native lands for part of its revenue will in future be faced with restrictions upon its borrowing or obtaining advances from a hank. This warning was contained in a report made to the Waikohu County Council yesterday, when the council was urged to use its efforts to secure amending legislation to facilitate the collection of native rates. The greatest difficulty, it was stated, was not land owned and occupied by Maoris, but native land leased to Europeans and native corporations. It was evident that those financing on the security .of these leases were becoming more and more aware of the def ective remedies .the local bodies possessed for reeovering such rates. It was stated that the head of one of the principal financial institutions had been advised that a client whose native lease and stock had heen given as security was heavily in arrears with rate payments, although it appeared that the proceeds from the property warranted some payment. The reply simply stated that the matter should be ref erred to the Native Department, as there was no liability to meet rates. As the result of experiences such as these it was being realised that the practice of granting loans or overdrafts to local bodies was distinctly hazardous, and that in future facilities for borrowing would be much restricted. The council decided to urge the immediate puhlication of the Native Rating Commission's report and the passing of amending legislation.