CITY FINANCES

Dominion, Volume 14, Issue 229, 22 June 1921, Page 6

CITY FINANCES

A DEBIT OF £40,000 LAST YEAR

MAYOR DISCUSSES THE POSITION At to-morrow evening’s meeting of the City Council the estimates for the year will bo considered, and the rates btruck, in order that the city treasurer may issue the demands as early as possible, which in this case should be before the end of July. Referring to the matter the Mayor (Mr. R. A.' Wright) said yesterday that it had to to tome in mind that there was a debit of £4O,O<D on the last year’s working. That' was accounted for by the fact that with fixed rates the city’s revenue was not elastic, whilst on the other hand the expenditure had increased steadily with the cost of living, chiefly through increases in salaries and wages. In the case of general labourers, the wages paid were 65 j>er cent, more than in 1914, and driven?’ wages (including tramway men) had increased from 70 to 85 per cent., whilst in all other departments the advance in salaries ranged from 40 to 50 per cent. In 1914 the City Council was paying 225. 3d. per ion. for the best of coal, now the price was about 435. per ton for coal of varying quality. The result was that the city’s finances had gone backward. There were also works done out of revenue -which were properly capital works. That explained why some works that were promised or partially promised had not been carried out.

"I am determined,” said the Mayor, "that the. City Council must live within, its revenue. At one time every borough had to do eo, as thei law did not permit them to raise money by way of overdraft, but a later measure gave local 'bodies more elasticity, with the result that they were able to spend more than their income, which, I think, is wrong in principle.” Asked as to whether he could indicate whether there was likely to be any change in the rates, the Mayor said that was for the council to decide. There would, he anticipated, to a lively discussion on the estimates on Thursday evening, but they would have to strike the rate that night in order to get some money in as eoon as possible.