SATISFACTORY POSITION

Bay of Plenty Beacon, Volume 4, Issue 179, 12 November 1941, Page 5

SATISFACTORY POSITION

BOROUGH FINANCES

MAYOR'S FIRM RESOLUTION

"I assure you that so long as I am Mayor we will live within our means and carry on a sound financial policy. This borough was once in a bad financial state, was brought back to a sound position by a previous council, and 1 is going to stay there," stated His Worship the Mayor, Mr B. S. Barry, on Monday night, when Gr S. S. Shlapley criticised the maintaining of a reserve of £1500. His Worship had reviewed the position following the first six months of the current year's operations terming the position as a very .atisfactory one which reflected great credit upon the clerk's handling ol the estimates. The programme of works had proceeded steadily and with expenditure ami , revenue reviewed showed that further work authorised would be done and the year concluded with 4 credit balance showing of £1538 Revenue estimated yet to- be receiv. Ed would amount to £10,437. "We like to always carry a reserve of £1500 and with the revenue in view spent on work yet to be done the pro-, gramme will be completed to leave that margin," he added. Hospital Revenue Threat "I agree that we should conserve the position as we maj'" have an emergency call for £1000 at any time. Also it will doubtless be found that hospital revenue will be up again next year," said Gr W. Sullivan adding that while charges had been increasing and would certainly increase more the Borough was not able to build up its revenue to any greater extent. No't Big Reserve That the reserve was by no means large for a town of Wliakatane's. size was remarked by His Worship, who agreed that the Hospital levy would increase considerably next year. The Hospital Board was, faced with a formidable building programme and costs were ever increasing. "Occupied beds at the Hospital are increasing daily while the Board is having serious staffing difficulties and Avages have increased enormously," he added, saying that he had been warned that the levy would substantially increase unless the Government stepped in and limited it as had been spoken o.n. Mr Barry continued that the council had had a good year for rates and the money was not going far enough and he couild not see where more revenue could be obtained. "We budgetted on a high rate collection, but this might not always be received." Should be Spent That he took a practical view was the assertion of Cr S. S. Shapley, who said the Council should consider holding a credit as against losing the value of work done on works and services. He maintained that not sufficient new work or maintenance of established works was being done, and* he did not consider it wise to carry a surplus when so many works were needed. The speaker added that the Highways Board had taken over some roads and the Borough should have been able to- spend more on newworks. Little had been done so far this year. "We should spend up to our income if necessary," he said, "and new works are definitely needed. We should do new tar sealing and concrete paths each year. I, feel that the money would be well spent and better spent on the roads, than lying in the bank." After War Needs "This is a time when Ave should be very cautious," said Cr A. J. Canning." "The Borough was in difficulties once before and Ave should be again if Ave rushed ahead as Cr Shapley Avishes us to do." Cr Canning continued that Avorlc A\ r ould have to be found for men Avhen the Avar Avas and at present no more than could be helped should be spent, "Difficult times are coming, although the Government says not (and I hope it is right") he concluded. Good Work Done "Cr Shapley has painted a gloomy picture of Avliat Ave haven't done," said His Worship, "but Ave haA'C made steady progress which is the only true progress. If it is not steady then it is artificial." " We have done a considerable amount of capital Avork each year and in the next six months will

spend a further £2000 011 such works as well as maintaining the Borough. We maintain the Borough in a good state, and that this is so is borne out by the number of visitors I receive from other towns Avho remark to that effect." Mr Barry continued that the large amount of permanent work done had included the tar sealing of Crete, Ramson and Salonika Streets. Certainly the Government had financed two of these but all was part of the Borough programme and improved the town. "We have nothing oi which to be ashamed," he said, "and after all the £1500 does not belong to this year's revenue. We arc spending all this year's income which has been good." "It would not be a good policy to spend our reserve in a year which has been buoyant, and then find that revenue dropped in a future year." He then expressed his firm resolution to maintain his policy of finance. Cr Sullivan concluded the discussion by pointing out that the reserve was not in a fund "locked away," but was only shown at the end oi the 3'ear, the Council always been in debt for most of the year and until tlie rates came in.