THAMES BOROUGH

Hokitika Guardian, 18 March 1932, Page 3

THAMES BOROUGH

HIGHEST LIABILITY IN NEW ZEALAND.

THAMES, March 15

A meeting called privately by the Chamber of Commerce last evening was so largely attended by ratepayers that a, larger hall had to be engaged to accommodate them.

Burning questions, such as the town’s indebtedness, the payment of rates due on March 28, and' what debenture holders required, as no interest had been paid them since August 1 last, led to much discussion. The present indebtedness is £215,000, the Harbour Board loan is £06,000, and the bank overdraft £20,000. Councillor Muir stated that the borough had borrowed a huge amount against its assets, the highest in New Zealand. The present interest liability was £17,000. The 3s rate imposed last year was expected to bring in £25,000, but it was more than likely that omy 50 per cent, of the collection would De made. Consequently, they could not carry on.

Councillor Garland said that it was unfortunate that the proposals from the bondholders’ committee were con-'/ fidential, but he could say that they offered no relief whatever, only temporary postponement, and the position in eighteen months would be -worse than to-day, but what could they offer the bondholders? He advocated a reduction of interest to 2 per cent., which meant a 2s rate, which they could pay. The following resolutions were carried :

“That in the opinion of the Thames business people the crushing rate at present levied is beyond the capacity of the town to carry. A continuance of such rating must inevitably ruin business and destroy the bondholders’ security.

“That a commissioner he appointed on -behalf of the bondholders and ratepayers to inquire into the present position and future prospects of the town and to recommend a maximum rate that ratepayers can reasonably he expected to pay to meet the reduced loan interest and general administration expenses.

“That the possibilities of further reductions in the borough management be investigated by the commissioner. “That the council be requested not to increase the rates for the next financial year, hut endeavour to Teduce the same, and should the council be unable legally to operate without an increase in rates, that it be asked to consider its resignation .as a body in the protection of the interests of the ratepayers.”