The Daily News. SATURDAY, APRIL 26, 1919. A RETROGRADE MOVE.
Like a good many other things, rating on unimproved, values looks on the surface and in theory a very effective and equitable system of rating, and it was not difficult for a practised hand like Mr. P. J. o'Regan to make out a good case for it at New Plymouth on Thursday evening. But there are conditions existing in New Plymouth that put it out of court. Some years ago New Plymouth borough, then of an area of about 800 acres, made up its mind to go in for the overhead system of electric tramways, but found it impracticable without the assistance of the outlying districts. Its leading citizens addressed public meet-. ings in the suburbs and succeeded in inducing them to merge with the borough. This meant bringing in over three thousand additional acres of land, much of it unoccupied and farm land. The residents were promised that by and by the trams would be extended to serve their districts. Now a section of townspeople, having got the suburbs into the borough, wish to penalise them by rating their unoccupied lands to a point that will inflict grave hardship. It is a distinct breach of faith, and we will be surprised if the ratepayers, are parties to it. It would perhaps be a different matter were the trams running out to all the suburbs, for then there would be a chance of utilising the unused land, but at the present time there is no such possibility. Men have gone out to the suburbs
to secure a decent sized piece of land on which to conduct farm operations on a small scale, and to bring up their families under better conditions than is possible in the congested areas of the town. They are to be penalised if the advocates of the change in the system of rating have their way. Of course these gentlemen whose honesty of purpose need not be impugned, but who, all the same, are entirely misled by advantages' that are entirely visionary—claim that suburban residents will not be prejudicially affected; that, indeed, they will be benefited. But cne may fairly ask, who is going to make up the rales that will be lost in respect of valuable improvements in the town ? For instance, the Moturoa Freezing Works will pay for the current year rates to the amount of £172; if. however, improvements are to be relieved the rates will be only £26 5s 2d. All the other buildings in town, the owners of which are best able to pay the rates because they are turning the buildings to profitable account, will likewise escape. If the unimproved lands in the oatlying districts are»not to make up the deficit then who is? The principle of taxation and rating followed everywhere is that those best able to bear the taxation and rating should do so, not those least able to. The present system, rough and ready as it may be, ensures this; rating on unimproved values does not. Advocates say that the unimproved values rating forces owners to build or to sell at reasonable rates.. Practical experience in towns where it is in force shows that it does neither. The extra rates are simply added to the capital cost of the land, and the purchaser pays. The working man who desires to buy a sectipn is handicapped on this account, whilst he is also disadvantaged by having to meet heavy rates while he is paying off the section preparatory to building. Industry and thrift, we are also told, are penalised under the present system of rating. That is the case right through the piece, for without these qualities no one could purchase the land in the first place or make any headway in any direction, but whilst improving the value of the other fellow's unoccupied section it must not be forgotten that he is also improving that of his own. It can justifiably be urged that there are instances of property owners blocking a .town's progress by holding on unduly for an appreciation of values, but, as we have before stated, the better way to meet this difficulty is to obtain power for the municipality to resume the land itself and use it for building and workmen's homes, just ns it can now take land for public works. To introduce rating on unimproved values in New Plymouth at the present stage wouH not only be committing a gross breach of faith in regard to the outside sellers who came in to assist the borough to instal the tramways, but it would operate, we are convinced, ia/mically towards the interests of a town which is noted throughout the length and breadth of New Zealand for its spacious grounds and gardens, breathing spaces that make for good health and attractiveness and for a town's popu larity and progress. Facts voters on this question should bear in mind are that rating on unimproved values allows the capitalists to escape their fair share of the burden of rates, and acts as a deterrent to the workers securing ' ' an d on which to make comfortable homes of their own with sufficient ground to lighten the cost ot living.
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Taranaki Daily News, 26 April 1919, Page 4
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874The Daily News. SATURDAY, APRIL 26, 1919. A RETROGRADE MOVE. Taranaki Daily News, 26 April 1919, Page 4
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