RATING SYSTEM

Wairarapa Times-Age, 16 October 1941, Page 5

RATING SYSTEM

ANNUAL OR UNIMPROVED VALUE MASTERTON BOROUGH COUNCIL DISCUSSION. PRESENT METHOD FAVOURED. Following on a debate, heated at times and of several hours’ duration,, a resolution: “That rating on the annual value is more equitable than rating on the unimproved value” was lost by an overwhelming majority at a special meeting of the Masterton Borough Council last night. The Mayor, Mr T. Jordan, presided over a full attendance of councillors. Mr Jordan,, at the outset, moved a resolution that the system of rating on annual value was more equitable than rating oh the unimproved value, He defined the meaning of annual value as rating on the rental value —the rent for which a property could be let from year to year. In no case would the annual value be less than 5 per cent of the capital value. Mr Jordan quoted at length from a memorandum he had presented at the last conference of the Municipal Association of New Zealand setting out the case for and against rating on the annual value.

In reply to Councillor W. Kemp, Mr Jordan said that the natural effect of the new rating method would be slightly to increase the rates for dwel-ling-house owners, who had a majority on the rate poll. It would be asking a man to vote against his pocket and the only way to give effect to the system would be by statute.

Councillor Kemp dealt at length with the subject. He explained that he had given the matter considerable thought and attention. His principal objection was that a man would be taxed for improving his home.

Mr Jordan: “He would be taxed on his home as he should be.” Councillor - Kemp held that the system to be used should be on the extent to which it affected the people of Masterton. In New Zealand there were several thousand State houses alone. The rates for these and others would increase by three hundred per cent. Was it likely that people would vote for that, or the Government for that matter? he asked. He said that he must vote against the resolution.

Mr Jordan: “You have made some wild charges, Councillor Kemp. Some rates will go up.” Councillor H. E. Gardner said" that a change in the rating system would mean putting up the rates foi’ twothirds of the people and easing the rates for one-third. The class of ratepayers who belonged to the one-third group could afford to pay ordinary rates. He cited the case of Waipawa, where in three years the rating system had gone from unimproved to annual and back to unimproved. If a vote were taken here the same thing would happen. “I wouldn’t take a vote, but would have it by statute,” observed Mr Jordan.

“None can say, that the present system is detrimental to the borough —it is one of the finest towns in New Zealand,” continued Councillor Gardner. “It is a question of which system suits a particular town. We should stick to ours.”

Councillor Jackson held that the new system would increase the rates by 300 per cent for ratepayers -living out of town. He said he would vote against the resolution.Councillor C. E. Grey contended that the people of Masterton were satisfied with the present system. Any change would mean a burden on the poorer classes.

Mr Jordan said a fluctuation in rates under the new system was -on account of the relationship between the value of the land and the value of the buildings on it. Councillor G. V/. Morice stated that he had to agree with the resolution as it was worded, yet he was not in favour of a change. ■

After several other councillors had expressed their views, a suggestion was made that the matter be held over for a fortnight to enable more thought on the subject. Mr Jordan expressed regret that members of the council appeared to have “half-baked opinions” on the subject.

Councillor R. Russell said it was no use putting it off. He had made up his mind on the subject.

Councillor A. D. Low held the same opinion, while Councillor Gardner said it would mean covering the same ground again. Mr Jordan said that he would like members of the council seriously to consider the matter. before it was thrown out.

Councillor Gardner: “Like you, your Worship, we have oui' own opinions. You have your idea on this matter; so have we. Both systems have their advantages and disadvantages. Some councillors have made up their minds, others haven’t. You would never be convinced against your opinion, nor would some of us.

Mr Jordan: “That is perfectly true." Councillor Gardner: “It cuts both ways.”

The resolution was put to the meeting and declared lost. The Mayor and Councillor Morice voted for the resolution and the other members of the council against. Councillor G. D. Wilson left the meeting before the vote was taken.