Hamilton retailers got a welcomed break yesterday with the announcement that City taxes will not be going up during the coming year.

Corporation of Hamilton secretary Roger Sherratt said: "After very careful consideration it has been decided not to increase City taxes during the forthcoming year.

"This decision has been made in order to assist, as far as possible, the City retailers who are still feeling the effects of the economic downturn following the tragic events of September 11."

Chamber of Commerce president Charles Gosling said: "Obviously retailers will be delighted with the announcement made.

"And while the Corporation has said this is a one-off, I hope business partners and Government view this as a sign post for what needs to be done in the coming year.

"Everyone is looking at holding costs steady or decreasing costs and I recognise that the Corporation has costs like everyone else, but I am glad they are not looking at this in the simple way of just passing on those costs as a tax increase," Mr. Gosling said.

Mr. Sherratt said there was no pressure from retailers on the matter.

"We were aware of the downturn in tourism following September 11, and the effect on retailers and we felt this is one year we should hold off on putting the tax rate up."

Corporation treasurer Mark Melo said: "It has been a very difficult year indeed for the City's retailers, and this is seen as one way of helping to ease their burden along with that of the City residents."

Mr. Sherratt said taxes are normally raised on an annual basis, at the same level as the annual rise in the cost of living.

And Mr. Melo added that this should not be seen as a trend: "This is seen as a one-off situation that is unlikely to be repeated," he said.

Mr. Melo added that the move to not increase taxes could leave the Corporation in the red for the year.

"The City will have increased costs at a time when we also have to meet the cost of financing the new wastewater treatment plant.

"But, every effort will be made to keep spending to a minimum and to economise wherever possible.

"It is anticipated that the Corporation will finish the year with a slight deficit due mainly to capital projects, specifically the completion of the wastewater treatment plant, part of which has been able to be paid from previous years accumulated surpluses.

"At this point Corporation revenues are not down, due in large part to continued strong revenues from goods wharfage, but any negative effects would be more likely to be felt in the next few months.

"The result of not increasing taxes will mean that the Corporation will be tightening its belt during the coming year."

Although Mr. Sherratt said taxes normally go up year to year, there was one exception to this, in 2000, when taxes were actually adjusted downwards in keeping with changes in 1999 to annual rental value (ARV) rates.

Mr. Sherratt said: "At that time the Corporation would have benefited by a huge increase in tax revenue if the tax rates had remained unchanged when ARV's had large increases leading to very substantial increases in land taxes for city homes and businesses.

"The decision was made to reduce the actual tax rate percentages downwards with the effect that total revenue from taxes remained approximately the same as in the previous year."