THE CITY'S DEBT

Evening Post, Volume CX, Issue 138, 9 December 1930, Page 7

THE CITY'S DEBT

PEOTEST AGAINST LOAN]

RATEPAYERS' ASSOCIATION ACTIVE

A protest against the action of the City Council in raising loans without the authority of the ratepayers was made at a meeting of the Wellington City Ratepayers' Association last evening, Mr. H. H. Miller presiding.' In the course of his address, th» chairman said that there never had been a period when greater care was necessary in the choice of Mayor and council than was the ease to-day, Eates had risen far beyond what business people could stand, and the dangerous practice of raising loans without the sanction of the ratepayers had. grown to scandal point. Municipal administration expenses were tremendously high, and tramway control was quit© an autocracy. Wellingtons-cost of administration was in excess of that of Auckland's. During the past four years approximately the larger portion of civic loan money had been raised by special order, a very small portion only receiving the sanction of the ratepayers. In addition to the heavy rate burden, the electric change-over had cost a fabulous sum. With hospital rates at over £61,000 per annum, bringing general and other rates up to £526,000, and municipal extravagance the order of the day, it was apparent that such a body as the 'Wellington. City Ratepayers' Association was a, business necessity. The total rates for the last three years were: 1929, £434, 035; 1930, £502,802; 1931, £524,681; rise on two years, £91,000. "If you continue to be apathetic," ho said, "business and residential members will find before long that their rates will become a veritable rent. Business men have already found that between, the graspings of Government and the impositions of our City Council there is little business left; the pace must be slackened." .. The meeting considered the City, Council's proposed loan of £50,000, and carried a resolution, protesting against it. loan expenditure was enlarged upon, by Mr. J. D. Sievwright, who said that the burden of debt, increasing rates, and excessive cost of administration 6£ the Corporation were growing out of all proportion to the power of the* ratepayers. Quoting from the. Local Bodies' Handbook, he said that at the 31st March, 1930, the debt of the city, was £4,790,000, which represented an. increase of £735,000 during the three years of the Mayor's term. In the present Mayor's term the following loans had been raised by the authority of the ratepayers:—Street paving, 1927 (10 per cent, on 1925 authority), £20,000; footpath's, 1927, £63,000; paving, 1927, £100,000; public conveniences, 1927, £26,875; Kelburn viaduct, 1929, £24,200: total. £234,075. Loans raised by special order wera as follows:—Karori drainage, 1926, £13,900; Onslow drainage, 1926, .£lB,----700; Miramar ana Seatoun Heights drainage and water, £26,500; unemployment relief, £12,000> £4000, £10,000, £26,000; Hutt bridge, 1928 (city's share), £5800; unemployment relief, 1928, £10,000, £15,000, £10,----000; street widening, 1928, £150,000, £50,000; drainage and sewerage, ■ 1928 (Board of Health Miramar and suburban areas), £148,700; Wellington:-City; and suburban water, 1929 (city's approximate share), £10,000;: Seatoun, Eilbirnie, Island Bay water and drainage, 1929, £38,000; street widening, 1929, £50,000, £80,000; -unemployment relief, 1929, £25,000, £20,000,----£15,000, £21,000; total, £759,600. The loan of £161,250 for the eastern, tunnel, sanctioned in 1920 (plus 10 per cent.) made the loan £177,125. That had to be added to the total loans raised and floated in Mr. Troup's term; they aggregated £5,961,335. Three-fourths of that amount had not been sanctioned by the ratepayers. Beyond all ' that^ there was the projected water supply scheme estimated to cost £566,000, of which it was calculated the city's share would be £420,000. No account was taken of the loans raised for carrying on paving works, because they were administered by the Ci,ty and Suburban Highways Board. The approximate 'debt of the city, was 6£ millions sterling. Mr. Sievwright also dealt with' increases in rates. Councillors C. D. Morpeth and W. J. Gaudin addressed the meeting on loa» expenditure. The following resolution was eari4e«l( "That this meeting, having observe!, that the City Council is again raisin* a further loan of £50,000 by special order and without asking for the-rat* payers' sanction,, decides to enter a% emphatic protest against such prbceech ing, and requests that the Loans Boarfl should withhold ita sanction to sue* loan, having regard to the fact that the burden of city debt now exceed^ six millions sterling." The meeting also expressed the wish to be hearif by the Loans Board on the subject. .