HIGH FINANCE

NZ Truth, Issue 1190, 20 September 1928, Page 6

HIGH FINANCE

Wellington Council In Spotlight (From "N.Z. Truth's" Wellington R«p*> The extent to which a local authority may camouflage Ita activities m connection with internal business Is rather remarkable. The 'Wellington City Council is a ease In point. THE city has a Sinking Fund Account upon whioh it draws for debt reduction. Back- m the misty past— in 1881 to be correct— the city fathers, tar way of loan, borrowed from the Sink- V ing Fund Commissioners a little .matter of £25,000 on loan for tea years. As security for this loan, the council gave a mortgage to the commissionera involving certain corporation lands. This £25,000 has been owing, by the City Council to the Sinking Funds -for nearly 47 years. • Strange to say, nothing by way of principal or interest on the mortgage has been paid by the city, m spite of the fact that the mortgage still exists. . No doubt this mortgage of long standing is m the way. .-■ The present Wellington City Council has applied to the Minister of Internal Affairs to have inserted m the Local Legislation Bill a clause authorizing the discharge of this old mortgage. • Quite a pretty way of doing business. How very convenient It "would be for the average borrower if, when he felt the weight of a mortgage resting too; heavily on his conscience, he could petition Parliament ;to have It cancelled 1 , . . ; . PRINCIPLE AT STAKE The present City Council, although not primarily responsible for the mortgage, is now seeking Parliament's sanction to a discharge of the £25,000 which its predecessors borrowed, and which it pledged the city to repay to the Sinking Fund Commissioners. '. The law says that this £ 25.000 should have been applied to the reduction of municipal debt and not otherwise. Instead, the money was invested m the "Te Aro Reclamation Loan." Not only is a serious principle at stake, but also involved is the honor of the mayor, councillors and citizens of Wellington and the Sinking Fund Commissioners. The future borrowing of the city may' also be prejudiced if the proposal to be placed before Parliament m the ' Local Legislation ' Bill) is carried out. ' The Wellington city dailies are fully cognizant of this state of affairs, and are aware of the council's action m the matter. In spite of this fact, , however, they have maintained a discreet and heavy silence over what is, after all, a matter that should be fully ventilated, thus giving the public — who- are so vitally concerned— an opportunity <af vololng an opinion .on the fiubjec^