My dear P.M.,

In the King's Speech on the opening of Parliament this week, there
is a brief mention of Rating Reform-'...The burdens imposed upon
industry and agriculture by the present incidence of local rates
have attracted the anxious attention of My Ministers. They are now
engaged upon enquiries into the possibility of affording some
relief from these burdens to the producing community and into the
changes in local government which would thereby be involved.'
Although this is not 'featured' in any way in the Speech, it is, I
am told, a major part of His Majesty's Government's programme
during this last year or so of this Parliament.

The position briefly is as follows. In districts that tend to go
downhill, such as East Ham which you may have read about, the
rates tend to go up at an alarming pace owing to the fact that the
local factories and industries are the only solvent bodies who can
pay rates. The burden on them increases as the district goes
downhill, until the time comes when it pays them to abandon their
factory sites and go elsewhere. This, and similar abuses, has led
Winston Churchill [1] to devise a scheme for the Nationalisation
of Rating, which I am told is most promising and ingenious.

The country has been crying out for some relief from the inequity
of the present local rating system but until Churchill produced
this scheme to the Cabinet no political party has been in a
position to tackle it.

It is, I am told, to be made a major political gambit during the
present and future remaining sessions of this Parliament. It
necessitates twelve months' valuation work and, of course, an
immense administrative upheaval and a good deal of legislation. It
is not likely to be completed before the end of this Parliament,
but it will be well under way, they hope, and will raise this
Government in the estimation of the many people interested. They
hope that it will finally take the wind out of the sails of the
other political parties.

I am not sufficiently familiar with the rating position in
Australia to know if we have a problem in this regard, but I give
you the above brief story as a matter of interest.

I am, Yours sincerely,
R. G. CASEY