ON WHICH VALUE?

Taranaki Daily News, 11 September 1922, Page 6

ON WHICH VALUE?

THE SYSTEM OF RATING. ' DISCUSSION AT ELTHAM. A discussion on the question of whether rating should be on the improved or the unimproved value of land took place at yesterday’s meeting of the Eltham County Council, when Cr. W. E. Carter moved, in accordance with notice of motion, that steps be taken to introduce a system of rating on the unimproved value. Cr. Carter said that whatever happened it would be necessary before making a change to take a poll of the ratepayers on the question. He maintained that the present system of rating on the improved value, was, in effect penalising a man’s industry to the advantage of the man who neglected his holding. If a man was industrious and went to work to improve his farm, erected good buildings and so on, the valuer came along and put up the rateable value. He instanced the case of two farms lying side by side, one having an improved value about £lOOO greater than the other. The farm with the lower improved value was returning more revenue to the owner than the higher valued one and yet did not pay as much rates.

Cr. McWilliam seconded the motion. He said the advantages and disadvantages of the proposal would have to be weighed one against the other, but he believed the advantages outweighed the disadvantages. Cr. C. J. Belcher said he thought the matter required a great deal more consideration than had been given to it. He could not see any advantage in the scheme, as the same amount of rates had to be collected.

The question was raised as to whether rating on the unimproved value would affect the hospital rate, but Cr. A. Campbell pointed out that the hospital rate was struck on the capital value.

Cr. McWilliam said that in the Omoana riding there were a number of large holdings upon which the bush had not been felled, in some cases because the owners were stuck for funds. The improved farms in these localities were carrying the unimproved farms on their backs.

Cr. Belcher raised the point that the limit to which the unimproved value could be rated was 6d in the £l. What position would the Omoana riding be in if rating there were on these lines'? At the present time a rate of 3d returned revenue amounting to £2426, whereas if the unimproved value were rated up to the limit of 6d they would only get £1585 in revenue and it would be impossible to maintain the roads. Cr. M. W. Barker said if £lOO worth of improvement was placed on a farm the unimproved value would be put up

£5OO. . Further discussion ensued, in which varying opinions were expressed, it being generally admitted that it was unfair to tax a man’s industry. In view of the proposal being impossible in regard to the Omoana riding, Cr. Carter withdrew his motion and the discussion was dropped.