Notes of the Day

Gisborne Times, Volume XXXIII, Issue 3635, 23 September 1912, Page 4

Notes of the Day

WHY LOCAL BODY RATES Altt RISING.

There is a very instructive article, in a late issue of the Home “Municipal Journal’’ with reference to toe .shutling manner in which local body taxation is rising, not only in the United Kingdom, but also in .many ot-ho countries. “Communities, ’ it lis : rightly affirmed, “want much more in | tho way of public services tnan the} did thirty, twenty, ten,. or even five years ago.’’ As a case in point, the journal in question quotes the position of affairs as far as Birmingham is concerned. In that city a iurthei rate of fivepence in the £ has just been found necessary, .bringing the total rates np to the neighborhood 01 9s in the £ on the annual rateable value. The additional impost was made up as follows: Twopence extra in the £ for higher wages, for workmen, twopence for education, threefarthings for public, works, and more for baths, drainage and other civic necessities that have to he keptup to- a standard undreamt of a few short years ago. AA hat the “Municipal Journal’’ says further on. the subject is that as Jong as expenditure increases more quickly than rateable value, only two or three tilings can happen:—(a) The trading profits must make up the shortage: (b) the Gov- [ prnmsnt aid must incr n n«e: or ( ■) the rates must he raised. “The key to the ' situation,’’ it holds, “is undoubtedly to he found in a. systemnG- effort to i keep increases in expenditure down i nearer to the rate of increase in rate--1 ahh> value. In some quarters, as is ! well-known, it is held that the rates ’ are relieved by the p«rimv of utilising the profits on. tV trading concerns ! run by a municipality. dim “Jour- ' nal.” however, contends that in reality the system brings no actual relief. , “As a matter of fact.” if says, “the

money is taken from ratepayers who already pay rates, and the difference is a difference in method only and is riot a difference in inmderme except so far as it inflicts further burdens upon those least able to pay. Here, for example, are figures showing the sources from which the Birmingham rates are being relieved t'ns current year: —Electric Supolv. £20.237 : Gas (and Gas motors). £SU Rt 4: Markets. £243 • Tramways. .£40.0-17: Agriculture Rates Act. £942. Total, £ 102.283. It is obvious!-.- inaccurate to describe these large sums as ‘relief.’ Tlie money represents an indirect rate, and is paid in th? main by the same people who have to meet the Corporation’s demand notes.”