CITY SINKING FUNDS.

Dominion, Volume 3, Issue 810, 6 May 1910, Page 3

CITY SINKING FUNDS.

THEIR CONTROL. MAYOR SUGGESTS NEW POLICY. NOT APPKOVED. " An Important statement of policy was lnude by the now Mayor (Mr. T. M. Wilford, M.P.) last evening, in moving that the resignation of Br. Newman from the position of a sinking fund commissioner bo accepted with regrot.

Mr. Wilford said that the sinking fund commissioners at present were: Dr. Nowman, Mr. J. G. W. Aitken, and Mr. Palmer, Town Clerk. It had been the custom for many years to appoint the Mayor of the city to fill the place vacated by the lost Mayor. Hβ had been chairman for two years of the sinking fund committee of the Harbour Board, and if he was appointed to succeed Dr. Newman he would ask the council to mako the appointment purely temporarily, so that he might have an opportunity to move that the sinking fund commissioners should be absolutely independent of the council. He thought the time had come when they should have ■ men absolutely off the council to look after these funds, and he would like to see suggestions, made for the appointment of men who could devoto their experience and time to the work of deriding on the securities on which the sinking funds should bo lent. At the same time, power should be left with the Finance Committee to recommend to the sinking fund commissioners tho class of securities on which these moneys should bo lent, leaving it to the commissioners to select the best. It was not that ho thought that anything had occurred to necessitate this change, but the council could not top closely guard the sinking funds, on which depended a great deal of its financial success. The ' Mayor then moved: 'That the resignation of Dr. Newman from the position of a sinking'fund commissioner bo accepted with regret, and that the council place on record its appreciation of. his past services." Councillor Luke, in seconding the motion, said that if Dr. Newman had been remaining' in the city he felt sure that Mr. Wilford would have been pleased for him to continue as sinking fund commissioner. Ho believed that most of the councillors agreed that it would be better if the sinking fund commissioners were Independent of tho council. Hβ hoped that Mr- Wilford would take the position in the meantime.

The Mayor said he would move a resolution in favour of outside commissioners at the first opportunity which ouered. "An Idea to bo Repudiated." Councillor Hindmarsh said that he quite differed from the Mayor. The more responsibilities were given to local bodies Uie better it, was for them, and tho Mayor should be tho first to repudiate such an idea as that they were incompetent or dishonest. That was tho inference he drew from the Mayor's anoech— that it was not safe to trust the council with the investigation of the securities for the sinking funds, either becauso they were dishonest or because they were incompetent, ahe sinking funds had been well invested in tho past, particularly during the last three or four years, during which tho 'investments had been supervised by the Finance Committee. He hoped.that the Mayor would resist the centralising.tendency of tho Government to treat Jocal bodies as incompetent and dishonest people. They knew what took place in Parliament last session when it was deoiled to take away tho investment of sinking funds from the municipal bodies (The Mayor: I was against it), and giva them to the Public Trustee or some other authority. "I would like to know," said Councillor Hindmarsh, if the Government in their lending Departments are any better, than the Wellington City Council—whether they can compare with tho 15 ty Council." (Hear, hear.) He had not been on tho Finance Committee and knew nothing about what wont on there, but ho wna fully satisfied ■.that- i'the ; . committee -would -protect the ■interests" Wellington. Councillor Hindmarsh criticised the attitudo of Councillor Luko on this matter, which, ho said, was only what he expected of htiri, knowing Councillor Luke aa he now did. ; . ~ .

Councillor Devine endorsed the remarks of Councillor Hindmarsh on the main question. Ho could not let the. suggestion go abroad that tho sinking funds could more carefully treated than they had been by the Finance Committee. It was notorious that tBo local bodies of the colony in conference had protested against the Public Trustee being the medium of investment. It wos a reproach against them that they should not bo allowed to administer their own funds.

The Mayor in Reply. The Mayor stated that it had been farthest from his intention to- make any innuendo such as had been inferred: Ho had merely intended to move a resolution later to test tho feeling of the council as to whether the sinking fund commissioners should be outsido the council, ,He had resisted the intention of tho Government to take away the administration of their sinking'funds from local bodies. Ho would bo very sorry to 6ee them pass into tho hands of tho Public Trustee. There was the question, however, whether the Mayor or members of a public body which had numerous applications for sinking funds had tima fo investigato these matters properly. He would resist the placing of tho funds in Government hands to the utmost of his capacity. Councillor Devine pointed out that the city treasurer was always at the back of the council.

Utmost Care Taken. Councillor M'Laren, as a member of the Finance Committee,' was absolutely satisfied that the utmost caro had been taken in tho investment of the sinking funds. He thought that somo of tho commissioners should bo inside, and others outside the council. (The Mayor: "We would always have the town clerk.") He believed that there was wisdom in the policy of having the whole Finance Committee to investigato these securities.

The Mayor suggested that it would be quite in order to add to the motion: "That the question of tho constitution of the sinking .fund commissioners be referred to the Finance Committee for consideration."

The addition was not made, the Mayor remarking that the council evidently desired to take the motion as it stood.

Councillor M'Laren said he did not think that there was any suggestion of either dishonesty or slackness in regard to the administration of the funds.

The Mayor: I don't think that has been, suggested.

The Mayor's Responsibilities. Councillor Smith said that the Mayor ought to occupy the position as ■ sinking fund commissioner, because he ought to be aware at all times of the exact financial position of the city. He hoped the Mayor would accept and keep the position as sinking fund commissioner. Councillor Luke said that he resetted Councillor Hindmarsh's remarks as to' tho speaker's action. He was surely entitled to hold hie own opinion, «.nd he thought tiie whole thing snould bo conducted by men outside the City Council.

Councillor Carmichael said thnt he knew of several instances where sinking funds had been invested in boroughs round the city which would sooner or later come within the city boundaries. He 'lid not consider it wise that, sinking funds should be lent in such a way that they might ultimately become part of the city's debt. The motion was carried.

Further Opposition to Proposal. Councillor Fletcher then moved that the Mayor should be appointed as sinking fund commissioner in place of Dr. Newman. He considered (hat a man who took up a public position should bo prepared to accept all tho responsibilities appertaining to that office. lie did not think it would be wise to make such sweeping alterations in policy as bad boon suggested by tho Alayor, and ho could not agree with his proposals. Councillor Prosl seconded the nomination. The motion was carried, n.nd tho Mayor returned thanks to the council for giving him the appointment.