H.—2l

4

These areas will be found more particularly described in Schedule I hereto, and shown in red on accompanying plan [not printed]. Your Commissioners are of opinion that all the boroughs mentioned in the schedule to the Thames Harbour Board Loan and Empowering Act, 1920, should remain portions of the harbour district, as their existence and prosperity are bound up with the prosperity of the counties surrounding them, and what is a benefit to the counties must be to the advantage of the boroughs. Your Excellency's Warrant further directs us to inquire into and determine what amount of rates shall be leviable upon the various properties within the respective areas comprised within the Thames Harbour District. In pursuance of such direction your Commissioners have carefully considered the circumstances peculiar to each area liable to taxation for the construction and maintenance of the Thames Harbour. In arriving at a conclusion as to the proportionate rate which each area should pay, we have taken into account the following circumstances as factors in determining the benefit likely to be derived in each case from the existence of the proposed harbour: (1) Distance from the port; (2) facilities for using the port (under such heads as " rail " and " water ") ; (3) capacity to use the port; (4) appreciation or enhanced value of the districts benefited. Your Commissioners consider that, with regard to the rating of the areas contained within the present Harbour Board District, as set out in the schedule to the Thames Harbour Board Loan and Empowering Act, 1920, neither the several liabilities nor the ratio of taxation can be altogether maintained. By a calculation founded upon the estimated capital value of all rateable properties in the district we have ascertained that the amount of money raised by the special rate would fall short, to a considerable extent, of the actual requirements of the Board. This fact, coupled with the inclusion of Matamata County and Town District, necessitates a readjustment in the amount and proportions of the special rate. Applying the principles above enumerated, we have arrived at a scale of proportionate payments by all the areas rateable within the district which we consider fair and equitable (see Schedule II). In explanation of the reduced amount to be contributed by Morrinsville, your Commissioners desire to say that they have taken into account the fact that Morrinsville has recently been revalued under the Valuation of Land Act, and its capital value has been largely increased. Under the existing scale Morrinsville would have contributed, before the revaluation, the sum of £116 annually. Under the new values that sum is increased to £290. Under these circumstances we think Morrinsville's rate should stand at -fad. in the pound until the other boroughs are revalued on a similar basis. The inequality of the existing rating of Morrinsville is shown by a comparison of its contribution with those of Paeroa and Te Aroha : Population of Morrinsville, 1,350 ; contribution, £290. Population of Paeroa, 1,800 ; contribution, £189. Population of Te Aroha, 2,109 ; contribution, £181. Provision is made in the Act for a readjustment of rates should such appear necessary. A plea for special consideration by the Paeroa Borough Council and the Ohinemuri County Council was not entertained. This plea was founded on the fact that portions of these areas are now specially rated for the improvement of the Waihou and Ohinemuri Eivers (under the provisions of the Waihou and Ohinemuri Eivers Improvement Act, 1910). Your Commissioners held that this matter was unconnected with the questions under consideration, and evidence on the subject was not admitted. These local bodies —viz., the Ohinemuri County Council and the Paeroa Borough Council —also asked for special treatment and a reduction of the rate, on the ground that they are already connected by water with the Port of Auckland, and will therefore derive less increased benefit than areas whose only connection is by land. Paeroa is only twenty miles from Thames, and by its nearness to the sea and its facilities for reaching the harbour is likely to be benefited more than any other borough except Thames. Your Commissioners are unable to see, therefore, that these areas are entitled to any special consideration. These observations, in a modified degree, are also applicable to Te Aroha. Your Commissioners have retained the proportion of -|-d. in the pound in the case of Waihi, as no opposition was made to that proportion by the Borough Council. The Borough of Waihi is almost entirely dependent for its existence on