LAW MUST BE CHANGED

Sun (Auckland), Volume IV, Issue 1049, 13 August 1930, Page 9

LAW MUST BE CHANGED

COUNCILS CONDEMN FULL COURT RULING UNIMPROVED RATING DISPUTE | Local bodies in Auckland are unanimous that remedial legislation should be brought down immediately so that the law which permits the part remission of rates on house properties which have been vacant for more than six months of a rating year shall not apply to land rated on the unimproved value system. The executive of th e Municipal Corporations Association will b© asked to urge this view on Parliament, and members of Parli;* - ment will be approached by the various local bodies affected with a viev to securing the change. Yesterday a meeting of delegate* from local bodies around Auckland which have adopted the unimproved : rating system met in the Chamber of Commerce to discuss a decision of th« Full Court in a case brought bNorthcote. It had been held that half rates must be remitted on unoccupied house properties on either capital or unimproved rating systems. Delegate = represented Takapuna, Mount Alber* Devonport, Birkenhead. Glen Eden. New Lynn. Onehunga, Henderson and [ Northcote. “This decision is u vital one as far i as we are concerned.” said the chairi man. Mr. J. W. Williamson, of Taka- * puna. *Tt will endanger our finance.-, as we can quote cases in which refunds will be demanded. Birkenhead. Takapuna and Mount Albert all have large areas of undeveloped lands from which the collection of full rates might be prejudiced seriously.” Mr. Williamson moved that the executive of the association be asked to take action. This was seconded by Mr. L. Rhodes. Mayor of Mount Albert.. who contended that it was clearly not the intention of the Act to include unimproved ratings, as the remission of half rates could be secured on the value of the improvements only. Although Onehunga will not bf affected materially by the court’s decision. the council is fully in accord with the view that legislation should , be changed, said Mr. E. Morton, Mayor of Onehunga. VARYING OPINIONS The case which evoked the Full Court decision was outlined by Mr. H. W. Wilson, town clerk of Northcote. The case had dragged on for IS months and had brought to light » number of legal opinions varying from the actual court decision. Personal!* he considered that, since rating was on land only, the fact that the dwelling was unoccupied made little difference. The position was a serious one, cutting at the roots of the principle of unimproved rating, and really arose from Parliament forgetting to amend one clause in the Act of 1925. That the payment of rates could be avoided to a large extent by large landholders building on their property a small shack which they could leave empty for six months of the year was pointed out by Mr. B. Hart, of Henderson. “There are between 30 and 40 houses empty in New Lynn at present, and the first application remission of rates came in this morning.” said Mr. George Lawson. The council at Glen Eden has already passed resolutions similar io that'before the meeting, according to Mr. W. E. Martin. “The position is too ridiculous to exist for long,” was Mr. J. P. McPhail’s contribution. Birkenhead would stand to lose very heavily, he said. The motion was passed unanimously, and will be forwarded to other local bodies throughout New Zealand. In the Dominion there are 77 boroughs and many town boards rated on the unimproved system, and It is expected that all will urge similar action.