PROPOSED RATE.

Temuka Leader, Issue 1509, 22 May 1886, Page 2

PROPOSED RATE.

TO THE EDITOR. Sir, —At th* meeting of ratepayers for the Geraldine Road District it was suggosteJ that the incoming Board should take steps at an early date—should they consider it advisable-—to strike a rate in order to secure the subsidy offered by the Act before its repeal. Several ratepayers considered that the present state of the finances of the Colony wou'd not justify the Government in continuing the subsidy to Local Bodies. As the Road Board has just collected a rate of one half-penny (which is equal to eightpence in the £ on the annual value) would it not be well to consider the interests of the ratepayers, and not overburden them with local taxation for the sake of getting the subsidy from the Government ? Further, should they not carefully ascertain their claim to the subsidy before taking any steps in collecting a rate ? Some time about the middle of last February you gave your readers, in a leading article, an explanation of the Local Bodies Finance and ; Powers Act with regard to the subsidies to be paid to local bodies in the following words:—

"By the Local Bodies Finance and Powers Act, the Board (moaning the Geraldino Town Board) is entitled to receive from the Government this yeai 10s for every £ they shall. raise; by means of a rate, and, unless the Act ia repealed, they will be entitled to receive £ for every £ of rates collected next year." Now to come to the point which it would he well for the Board to consider before striking a rate for the pske of the subsidy, i will take the liberty, of asking a few questions, and will thank you to answer Ihem through your widely circulated paper. (1) Dora the Act offer Road Boarda £2 for £1 of general rates actually collected forevery financial year, to be equally divided be-, tween the Boad Board and; County Council where the Conntiea Act is. in force ? (2) Does the Road Board receive only one half of this amount for : rates collectable and collected for the vear ending 31st March, 1886 ? (3) If the Boad Board collect a rate now, will tbey be entitled to the subsidy of £2 for £1 with the Act in its present form ? (4) Dots not the Act itself abolish the subsidy without being repealed by another Act as you refer to, on the ground that the schedule does not. apply to any period subsequent to 81st March, 1886 ?■•; (5) HaJ not the Road Board better wait until after this session of Parliament before striking a rate.—lam, etc., Ratepayer, [The part of the schedule of the Local Bodies Finance and Powera Act 1885, which bears on the question raised by our correspondent is as follows:—"To each Road Board in such County wherein the Counties Acta are not in full force, but if the Counties A cts are so in fullforce then to each Road Board and the' County Council in equal parts : (1) When the general rates actually collected by the Ro*d Board in the Road District shall not exceed a total sum of £SOO then a sum equal to £2 for every £1 of such rates, and no more. (2) When the general rates ,so collected shall exceed a total sum of £SOO, then a sum equal to £1 for every £i of such rates, and no more. Provided that no lesser sum than £IOOO nor greater than £2OOO shall be paid in any one year under this subsection to any such Road Board." The above quoted clause answers questions 1 and 2, and as regards question 3, clause 2 says that " there shall be paid to the Council or Board ofench County. Road District, etc., with respect to rates collectable and collected for the year ending 31st of March, 1836, half the amounts to which •they would be entitled under the plan of distribution described in the schedule hereto: provided that collections may extend up to the 30th&f June, 1886, and the amounts voted heiein shall be payable up to the end of June, 1886." It appears to us that this refers to rates struck and collectable before March 31st, 1886, and that rates subsequently struck would not come under it. But the Act is very difficult to understand, and this reading may be wrong. For instance, the schedule begins with words "during each financial year" which would lead to the belief that mora years than one are contemplated. As regards question 4, there is nothing in the Act that shows when it came into operation, or when it will cease to have effect, with the exception that it seems to refer the year ending March 31st, 1886, only. It was originally intended that the Act should remain in operation for five years, but it was subsequently amended, and hence perhaps the reason that it contains such contradictory passages. It is, however, generally understood that the Act has ceased to exist, but it is expected that that something will be put in its place whereby subsidies will be granted. As regards question 5, we think the Road Board ought to be the best judge as to striking a rate. In our opinion it is better for the Road Board to strike a small rate now than spend all the money they have, and then have to depend on rating altogether. We presume that the members of the Road Board are large ratepayers themselves, and doubtless would not put their hands into their own pockets without feeling that they were doing for the best. However, the question is very debateable, and it is quite possible that we are wrong in coming to this conclusion.—The Editor].