The Wairarapa Daily. TUESDAY, MAY 7, 1889. Unfair Rating.

Wairarapa Daily Times, Volume X, Issue 3198, 7 May 1889, Page 2

The Wairarapa Daily. TUESDAY, MAY 7, 1889. Unfair Rating.

The opinion which tho Masterton Road Board has obtained from its solicitor, Mr W. G, Beard, upon the question as to what valuation should betaken for the collection of special rates under the Boads and Bridges Construction Act, 1882, is of more than ordinary importance to all looal bodies in the colony which have borrowed money, not only under that measure, but also under the Local Bodies Loans Act, 1886. The Board named has borrowed several sums under the Roads and Bridges Construction Act,, and it has hitherto been in.the habit of levying the amount annually required for the payment of interest and sinking fund upon the valuation which was in force at the time the special rate was struck; and as that valuation forms a very reasonable basis, does not necessitate a re-adjustment of the amount which each property holder shall pay whenever the values are altered, and in the end leaves pretty nearly the exact sum that is required to extinguish the debt, it seems psrfectly fair. According to Mr Beard's opinion this is wrong, and the ordinary valuation for tho time being must be taken as the basis. As Mr Beard points out, on glancing through the Roads and Bridges Construction Act, and the Rating Act, 1882, which must necessarily be read with it, it would appear at first sight that the valuation, in force at tbotimo the rate was struck would bo deemed to be the valuation for the purpose of collecting any special rate within the meaning of those Acts, Careful perusal, however, leaves a great deal of doubt on the subject; nor does it appear to us that Section 15 of tho Bating Act quoted by Mr Beard settles the difficulty. The section provides that every rate made by a local body shall be of a stated amount in the pound upon the ratable value of the ratable property as appearing in the valuation mil for the time l.eing in force. Does the part which we have quoted in italics refer to the time at which the rate was mado or the time at which it is to be collected ? It is evident to us that the Bating Act was drafted and passed through the Legislature in blissful disregard of the Boads and Bridges Construction Act, and that the idea of striking a rate to continue over a number of years was never contemplated, Under the ciroumstances Mr Beard has, perhaps, drawn the right conclusion when he says;—" The expression ' annually recurring rate,'- used in these last mentioned Acts, (Boads and Bridges Construction and Local I Bodies Loans) means, I think, that the amount of the rate sLall be annually fixed, and that this shall continue throughout the term for which the loan was granted. We are, however, aware that the Bubject Jins been the source of a great deal of controversy between lawyers in. the polony, many of whom'- take : the opposite N-thaji fbo m valuation,'tsnpt-.^'itikep,

all through the lime for which a loan is in existence. For the sake of many a struggling and hard-working settler who does his best to improve his land, we should be glad to see this opinion proved erroneous, because it is a perpetuation of the principle, in its very worst form, that ho who does most to' improve his property has to pay the most, while he who,does nothing is let off the lightest.- Let us put a oaseiri illustration. A and B are neighbors, and own, each, two hundred acres of land worth origiually thirty shillings per acre They were without a road, and have, with other neighbors, taken advantage of tlieEoads and Bridges Construction Act to get one made. For the money thus borrowed they have to pay annually a third of a penny in the pound on the annual value of their property. A sets, to work, fences his land, clears nearly the whole of it and put it in grass within five years from the time at which the raonoy was borrowed. B, on the otherliand is inclined to hold his section for speculative purposes, and thing except a bit of fencing which his neighbors compel him to do; so that, in five years' time he can show little or no improvement in its value except the unearned increment. On comparing the two properties/that of A is found to be worth LIO per acre, and B's L2 10s. These figures are taken as the basis for the triennial valuations. A glance is sufficient to show that A would have to pay just , four times as much as B, for'no othor reason than that he has been

industrious, and this difference would continue to,' exist' as long as B abstains from making improvements. As a matter of fact. B is as much benefited by the road as A, but be repays only a small, portion of the money which they jointly borrowed, If tho valuation of the respective properties were left as they were at the time the special rate was struck, these matters would be on a much better footing.' As Mr Beard points out in tho concluding paragraph, Section 27 of the Local Bodies Loans AH renders it unnecessary to levy a greater part of tho rate than is sufficient to cover the annual charges upon the loan. It would be impossible for local bodies to adjust the various fractions of a penny upon which the special rates are calculated, year by year, without a good deal of clerical assistance, which would cost more money than many of these would cure to pay. On the other hand it would be a hardship to collect the old rato'on new valuations, But these are only 'side issues, for the principle which we have just condemned would still continue to exist; the industrious farmer would still have to pay for the improvement in the value of his neighbors land, and that neighbor would sit down and laugh up his sleeve at his good luck. It is to. be hoped that the matter will be set right during the ensuing session by a short amending act,