STRIKING THE CITY RATE.

Evening Star, Issue 3168, 16 April 1873, Page 2

STRIKING THE CITY RATE.

There was a special meeting of the City Council last night, at which were present the J/ayor, Councillors Barnes, Neale, Woodland, Baivsay, Hmror, Walter, and Bossbotham, when the rate for was considered, Gr. B.vknts thought it was time that soiue steps were taken to eus6‘ tli'e ('iti/.eiis from the heavy taxation they had l,)eon flaying for many years past. The citizens were no doubt ;is well aware as councillors that tlic ( ouncil hail been unable to reduce the rates ji) time past. But now the falling in of the City reserves had placed in the hands of the Council a larger income than it had over received therefrom before : and it was nothing hut right that the citizens should receive some benefit. Itmight In; said that some of the outlying streets wanted improvement. He quite agreed with that; but they had to consider that, unless they reduced the" rates noW ; it would he some time before there would be another chance. While it was true that there were many parts of the town that required korbing and channelling, it would lx- found to press very heavily on the owners of property, if they were .called uiion to pay L‘JO or LUO in addition to the already heavy taxes. That was another reason why ho went in for a reduction of the rates, lie knew very well that the Council could manage with a Is !)d rate. It might he said that it. would he better to go in for permanent improvements ; but he said let those who came after us pay their proportion of the cost. _ He iioped the Council would make a reduction ; and felt sure that the citizens would lie highly ''ratified at it having been done. He concluded hy moving that the rate for 16/3-4 be Is dd in 11 iC c. , , _ . , , ( V. MThcku said it did not require much calculation, so far as Ids judgment went, to see that the statements and balance sheets that had I>cun prepared showed that the Council was never in a better position to make the reduction than it then was. He found that hy the licenses and City rents no less than Ld,do(i had been added to the income. Against that increased income was to he placed, for road metal, nicludiii"- tiie maintenance of the ipain street, leaving a balance of over LI,OOO to the good of the City. The increase this year amounted to ]/> 5.12 and next year he anticipated a further increase; the bank overdraft had been reduced

by Ll4O. While it was true also that the City was never in a better position, so far as the property of the people and their ability to pay a Is (id rate went, still it would be well for those who had the control of the City to exorcise £reat caution, and make arrangements for carrying on absolutely necessary works. He saw LI,OOO set down for new works, but during the years he had been in the Council he bad never seen sneb an amount set down before. There wore also twelve daymen provided for, and, so far as he could see, they could do with less. But, rather than retard the progress of City works, lie would go in for a further loan, say L 2,000, to be spent in absolutely necessary improvements. He would be the last to support a reduction, were it to infringe in any way upon City improvements ; still less, were'the reduction for the purpose of satisfying a popular idea ; but he felt a sincere desire to show the citizens the Council was anxious to reduce the rates as far as possible, and therefore seconded (lie proposition, Cr. Ramsay would yield to no councillor in a desire to lighten the burdens of the citizens ; but, after a careful consideration of the matter, lie came to the conclusion that to reduce the rate to Is 3d would be a very unwise step. He compared the Is (id ratc_ with the proposed Is 3d one, and drew councillors’ attention to the statement prepared by the Finance Committee. At the top of the list'stood the item of L 4,550, rents, which, in fairness to the other side, would be increased by L 1,300 next year. The next two items: Town Belt rents, LG7, and Town Belt depasturing licenses, Ll4O, would cease in the course of the next twelve months, if the Belt was to be improved. Passing to the statement of outlay, he found the item contingencies set down at L3OO. So far as his experience went, the amount was very much below the mark. Hay labor was put down at L 2,000. Luring the last two years jt bad amounted to ab' >ut L 2,500 a year, and he failed t< > see why Looo a year was struck off. There was a balance set down of LI,OOO for new works, which he um derstood to include street maintenance. Assuming the statement of LI,OOO balance to be correct, it had to be reduced by LSOO, day labor under estimated, which would reduce it to LSOO. Then the ma jority of the Council were in favor of a loan of LIO,OOO fov City works, and L 5,000 for improving the Town Belt; though ho thought the latter sum might be reduced by L 2,000, as he thought it was likely the Government would give assistance in the shape of prison labor; so that Lid, 000 would be borrowed within the next twelve months, the interest and sinking fund on which would bo L 1,050. In the statement furnished by the Mayor, extra revenue revenue not available lard year—was set down as LG,BSG, against which had to be set L 1,500 for the maintenance of the main road. A sum of L1,(155, representing the 3d in the £ proposed to be taken off the rates, and L 207 which would no longer be received fiom the Town Belt, left a balance of L2,3!.14, for the carrying on of works that had hitherto cost the Council something like L 5.000 a year. .To put the matter in a clearer light, he compared the Council’s past action in the matter of expenditure with the present. Luring the four years ended December, 1872, the Corporation’s debt was increased L22.49S 12s Id, to which was to he added L 7,500 received from the Government as subsidy, 'making a igtalexpenditure in excess of income of L 30,000 in four years. In the face of these facts was it wise, with only a balance of L 2,500 receipts over expenditure, after paying permanent charges, to take off LI,GOO, leaving hardly Li,ooo to pay what was known to cost between Ls,(](!o aild LG,OO(j. He did pot think tire proper time had oome for reducing the rate, It was the first time since he had been in the Council that they had a large sum of money in hand, and their successor.-' should have,an opporportunity of improving the City, and not be placed in the position the Council had so long occupied, of a hand to mouth existence. They all knew the citizens were in a prosperous condition ; if when times were bad a balance like the present had been shown, he would not for a moment have opposed the reduction. He would not force a Is Gd rate on the citizens if they did not get value for it. But they did get value ; and he could safely say that (luring the last four or live years the money at the disposal of the Council had been well spent. He put it to the members for Bell and Leith Wards, that the reduction of the rate sounded the death knell of the drainage question for many years to come. High Ward could do for the next twenty years without an additibiuil drain, and he could tell those members that, so' far as ho knew the opinions of the present L'oupeii, and could guess those of councillors to pome, fhc rates tyoiild nop he increased fot drainage purposes, unless ih' dp'sb t|f H 0 - 0S " sity. „ , Cr. Barnes : Take it out of the LIO.OOO loan. Cr. Ramsay concluded by moving, as an amendment, that the rate be Is Gd. Cr. Walter, in seconding the amendment, said he know that opposing the reduction would be considered unpopular; but ho did not see how the rate could be reduced. Lor two years the Government granted a subsidy. _ In 18G8 the rates amounted to L 8,903; in 1872 to L 9,403. The City rents in 18G8 were L 950 ; in 1872, 172,704. In 18G8 the Government granted L 3,000 subsidy; in 1872, there was nothing of the kind. The total receipts in 18( | were L 12,553; in 1872, Lid, 107. It was to be borne in mind_ that heavy receipts, in many instances, implied heavy expenditure; and he could not see how the licenses, kc., were to be collected unless they cost something. Then, again, members were continually crying out for new works; and he di(l not sec how they were practicable with a reduced rate. Melbourne, with its 100,000 inhabitants, had a general rate of Is, and a lighting rate of 3d, and in that city clerical expense, labor, and everything were 25 per cent, less than Imre, Re did not see then how the rate could be reduced'hero, at least Jhr a tunc.

Cr. NKALE.said the figures presented, which were truthful ami reliable, convinced him that the proposed reduction could he carried out. The argument of past expenditure was an argument in favor of the reduction, because most of the work was work which would not occur again. No time in the history of the City was more fivvorahie I,or a reduction than the present. As to the drainage question, if the ordinary rate was reduced, people would 'gladly Wfitljlmte a special rate for that work. Cr. Ro.srtBoTHAM intended to support the re* tention of the rate at Is (id. He had spoken to several persons in South Ward, owners of properties in streets not kerbed and channelled, and they preferred having the work done, and allowing'tiro rate to remain as it was. It was unwise and injudicious to reduce the rate at the present time. He did not think there was a Encore desire to reduce the rates ; the proposition ,\vas ipa.de for a different purpose altogether. Tlib forthcoming elections— — (Nuncillcrs'BAif.s pud KEALB rose to order; and the Mayor ruled''that jt was wrnug tp Impute motives, Cr. Kossiiutkam : The elections were coming off shortly, and the proposition was merely a cry to go to the citizens with. (T, N kale again rose to order. Election matters should not be introduced into the discussion. The Mayor : have already expressed my opinion that the remarks are out of order. If Cr. Ivossbotham has not the good sense to adopt it, I cannot help it. Cr. Bossbotham : It seemed likely that the amendment would he lost, from the fact of a councillor not being present. He was surprised at members, whoso wards required kerbing and channelling, opposing the borrowing of money. The Mayor : 'The'disejissjon is not the bor.rowing of money. Cr iiO.s.sijOTHA ji observed that he could not see how money could bo borrowed and the rate reduced at the same time. He hoped, if the amendment were lost, it would be again brought up in another form. Cr Woodland supported the reduction, the time for which he considered had arrived. It had been promised time after time. As to the reduction preventing drainage being undertaken, he did not think the cost of that work would ever come out of the rates ; it would never be done until a loan was got. Th.c Mayor thought it light that he should express his views upon the matter. He had come to tlu. conclusion that no tinjc in the municipal history’of the' Province was more favorable than tho present for reducing the rates. There was a balance, after providing for the fixed expenditure, of L 5,500, reckoned at a Is lid and not a Is (id rate. When he stated that it was a fact that the City had never been in that position before, lie thought it surprising that any councillor should advocate the reduction of tlm Is (id rate. At no previous time had tho Corporation a huger balance than LI,BOO ; and that at a Is (id rate. But no councillor had been bold enough to advocate an increase : but it was known that such a step would not be borne for a moment. It was true that the Government granted a subsidy for two and a half years; but of it LI, 400 was never paid, and 1 j BOO was taken out inland, bo that the actual subsidy was little more than L 2,000. Cr. Ramsay : In three years the Government gave as subsidy L 7,500, The Mayor’s argument was based upon the Council’s present financial position, which was incontrovertible. They had now a balance of L 5.500, when before it was never more than LI,BOO, This had resulted from the falling ia

of the reserves, which had been looked forward to for years. Candidates going before their constituencies had promised, when that time arrived, they would go in for a reduction of the rates. The time had now arrived. There was another reason why councillors should not, in the slightest degree, be afraid of reducing the rates. The extra revenue from all sources, more than that of past years, was LG,506. In the outlay set down was LI,OOO for new works, which there was little doubt would not be expended, as new works would most likely be constructed out of the loan it was intended to raise. The interest and sinking fund on that loan would bo L 1,050, but the position would be unaltered, as the LI,OOO set down for now works could go towards paying that interest and sinking fund. Convincing arguments should have been brought to support the retention of the old rate; but the arguments of Cr. Ramsay, the only one on that side who bad gone into the question, could bo shown not to have any weight in them. The argument that the loss of L 207 from the Town Belt was a reason for not reducing the rate, was stretching the line a little too far, Cr. Ramsay had challenged the item of contingencies ; but his (the Mayor's) experience of the working of the office was that L3OO was sufficient. After noticing the other arguments of Crs. Ramsay and Walter, his Worship said if the citizens decided to go in for drainage, they would have to make up their minds for either air increased rate, or to do the work out of a loan. The increased revenue of the Corporation was equal to an lid rate; and as it was only sought to reduce the present rate 3d, ho could not see how councillors had the hardihood to oppose the reduction. Crs. Ramsay ami Walter rose to order. The former said he would be referred to respect* fully, even by the Mayor of Dunedin. The Mayor was not aware of having said anything disrespectful or offensive. He concluded by stating he felt sure the supporters of tire reduction did not support it as a popular move ; but because they were convinced it was practicable. On the motion being put, there voted for it— Councillors Barnes, JS’eale, Woodland, and Mercer; against it—Councillors Ramsay, Eossbotham, and Walter. The motion was consequently can jed. The Council then adjourned.