CITY FINANCES

Hokitika Guardian, 26 July 1933, Page 5

CITY FINANCES

BALANCING BUDGET

COUNCIL DIVIDED ON PROPOSAL,

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CHRISTCHURCH, July 25.

The City Council discussed at length, to-nighf. the proposal to transfer £15,000 from the funds of: the municipal electricity department-, which its accounts show, is a- highly profitable business concern, to the Council’s general, ‘fund. The finance committee and the works committee',- .in collaboration, reduced the Council estimates for the year considerably, but still ended showing a prospective excess of expenditure over revenue of £12,692 10s.

The chairman of the finance committee, Rev. J. K. Archer, said that amount could be raised in one of the four ways: (1) Chits in salaries and wages; j/2) reduction in the works committee’s estimates ; (3) an increase in the rates: (4) a. transfer from the electricity department’s funds. He was opposed to the first three proposals, and recommended the fourth.

The Mayor, Mr D. G. Sullivan, suggested that the Council might give, in return for the £15,000, an area of land on which the destructor (now stands, which land was now practically in occupation of the electricity depart-" ment.'. ■ ‘

The other side of the case- was stated by Mr E, H. Andrews, who said that the committee had not faced the question squarely, for ijThad not made a ten per cent, cut in the Council’s salaries and wages, which, as’he' said with the lowered costs- of living, gave a 25 per cent-, advantage to the Council’s employees. He also opposed the continuation of what he'termed “the iniquitous subsidy to the unemployed,” this referring to the practice of the City Council of ‘ subsidising the wages of the relief workers in the employ of the. Council. Hp also thought that the transfer of bind,-proposed by the Mayor, was illegal. ; . ; “ The division of opinion ■> was not quite on party lines. , Most of the Labour members favoured the appropriation of the £15,000, but not all, ; and the Association cillors were not 'unanimouß Either ( an> opposing it. , 4 Councillor Ethel McCombs,. chair* woman of the electricity committee, who strenuously opposed the . proposal, to take any of the department’s funds wre equally opposed to the reduction, of ,wages or the - stopping of the subsidy to relief workers.’ghe moved that the rates ,be incensed. to provide' -the 1 necessary money to balance the budget; ■■■'■■ A ':T.V-r A- : ~A The discussion still proceeded at mkl-night, .. «. , .