The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, AUGUST 12, 1929. MUNICIPAL WORKS.

Hokitika Guardian, 12 August 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, AUGUST 12, 1929. MUNICIPAL WORKS.

The recent meeting of the Borough Council whereat the annual rate was struck, disclosed some tightness in the finance, and as the Mayor (Mr Perry; pointed out, the necessity for economy in regard to works for the immediate future. 'This policy will not he altogether pleasing, in view of the amount of'-work obviously to be done. Some time ago a schedule of work was presented to the Council by the Public Works Committee, and approved, involving a number of matters for urgent attention. These apparently are defererd for the Council has decided not to levy in rates more than previously, and even then it does not appear clear the Council will balance its accounts for the year. • The Council, however, lias taken consideration for the ratepayer’s pockets, and was not disposed to increase the rates to meet the urgent expenditure mentioned above. That attitude, however, does not imply that nothing will be done. For the policy already in hand in repeat to two very large and costly works, namely the renewal of the pipe line of the water supply at the head of the race, and the

reconstruction of the Sewell St. drain in concrete, is to be kept going, and the cost of the present works in hand is to be done out of revenue. These works were considered the most urgent in the general interests of the town; and to undertake them money was accumulated in advance and paid for out of revenue. The construction is now in hand, and this is also being done out of revenue. At the moment, pending the collection of the rates now being struck, there is a considerable overdraft, and this doubtless during the year as the two works referred to, proceed, will be an increasing quantity. The policy of the Council in regard to this matter may in the event of a tightness of funds now be brought into question,' for the point arises whether it is wise altogether to do permanent works of the nature referred to out of revenue, to the exclusion of ordinary work the advantage of which is for the general benefit of the town, in other words, the issue is whether the permanent work should not be done out or loan money, leaving annual revenue available clear for maintenance and upkeep, and if there is any surplus accruing from the annual income, either reduce the yearly rate or apply the available, sum to loan reduction. The general policy in most instances is to perform large works of a permanent character out of loan moneys, thereby spreading the cost over a term of years, so that the immediate population do not pay the full cost of works, the benefit of which will also pass to the population following after. At the same time, where it is possible 'to pay promptly for the work, the economy in cost is at once apparent, but care must be taken not to penalise the present' for the benefit of the future. Some time ago the Council had a suggestion of operating an unemployment subsidy, but the matter was not persisted in. The suggestion was mooted, also, to raise the balance of the loan authority still available to relieve pressure which was sure to come. That pressure is now being felt, and the Council must be watchful that there must be no false economy in permitting the preent stringency to continue while there is at call loan moneys which would relieve the pressure, and permit' the works of the municipality to progress in a 1 reasonable way. It is apparent there is much to do in street and footpath work. If these roadways are to be starved now as seems apparent, i> will' be very false economy, for the ultimate cost of restoration will be much greater than at present. The s’tuation therefore requires special consideration along the lines referred to for a policy of drift is in the end dangerous, because it can be so costly.