LOCAL Government and Regional Development Minister Norman Whittaker, concerned at the poor collection of property rates and taxes made by municipalities, expressed his misgivings after presentations of 2015 budgetary estimates had been made by five of the six municipalities in the Local Government Ministry boardroom in Kingston, Georgetown yesterday.

Town clerks, treasurers and other municipal officers from Georgetown, Anna Regina, Corriverton, New Amsterdam, Linden and Rose Hall Town gathered to conform to the November 15 deadline for submission of documents in this respect.

Special circumstances prevented the Georgetown Municipality as well as the Linden Town Council from presenting budgetary estimates.

During this meeting, it was recorded that three of the five municipalities that made presentations had collected only 50 percent of their property rates and taxes, with a lump sum of some $83M outstanding, which elicited deep concern from Minister Whittaker.

While the Anna Regina and Rose Hall Town Councils called for an increase in rates and taxes, Minister Whittaker wanted to know why they could not increase their collection of rates and taxes. “If people are paying ‘X’ dollars, and we are not able to collect 50%, when we take that rate to X plus, what makes us think that if those rates [increase] you are going to collect more?” Minister Whittaker questioned.

The Minister urged the Councils to develop policies and strategies for actively pursuing rate payers who have been dodging the authorities.
Recognising that citizens who actually pay rates and taxes are disenfranchised by those who do not pay, Minister Whittaker said: “You are putting pressure on those who actually pay, because the 40% who pay are being denied the service that they expect because they paid.”

Explaining the situation that usually obtains, Rose Hall Town Clerk Mellesia Punch called for emphasis to be placed on the fact that those persons who have not paid taxes for several years “are either deceased or (are) out of the country, and we are unable to make contact with them.”

Noting the challenges faced by the municipalities, Whittaker urged the local government bodies to consider other “legitimate” sources of revenue besides the collection of rates and taxes.

“Don’t just stick to the tradition sources of revenue,” he cautioned, while congratulating the Linden Town Council for venturing into other areas for gaining revenue.

“Because”, he said, “once you’re delivering services, you have a good case for advancing for people to pay.”

One member of the Linden Town Council went as far as to urge that because of limited sources of the council, it is difficult to pursue legal recourse against citizens who have not been paying their rates and taxes.

To this end, the Minister said that, some time ago, the services of legal personnel were contracted by the Ministry to deal with municipal matters.
“This year”, he said, “we have the benefit of the service of one legal person right now, and therefore we have to prioritise.”

The Minister said that while it is ideal for there to be more persons forming a full legal department of the Ministry, “the Council is empowered through the Town Clerk and the Environment Health Officers to take defaulters to Court.”

He explained that there is one NDC on the West Bank of Demerara that retains the services of a lawyer, who is paid by percentage of what is gained from the judgement. Not throwing caution to the wind, the Minister said, “It is a work in progress for us.”

(Derwayne Wills)