CRUSHING BURDEN

Rotorua Morning Post, Volume 1, Issue 174, 16 March 1932, Page 5

CRUSHING BURDEN

(Press. Assn.

THAMES BOROUGH ratepayers seek review of the position by a commission INTEREST REDUCTION HLAN

— By Telegraph— Copyrlght).

THAMES, Tuesday. A meeting called privately by the Chamoer of Commerce last ftjght was so largely attended by ratepayers that a larger hall had to be engaged to accommodate them. The burning questions .of the town's indebtedness, the payment of rates due on the 28th inst., and what the dehentureholders required, as no interest has been paid them since August . 1 last, Jed to much discussion. The present indebtedness is £215,000. Couneillor Muir stated that the boi*ough had borrowed a huge amount against its assets, the highest in New Zealand. The present interest liability was £17,000, The three shilling rate imposed last year was expected to bi'ing in £25,000, but it was more than likely that only a 50 per cent. collection would be made. Consequently they could not earry on. - Couneillor Garland said it was unfortunate that the proposals from the Bondholders' Committee Were confidential, but he could say that they offered no relief, only a* ternnorary postponement, and the position in 18 months would be worse

than to-day ; but what could they offer the bondholders? He advocated a reduction in interest to two per cent. which meant a 2/- rate which they could pay. " Poss'ble Economies The following resolutions were carried:— . "That in the opinion of the Thames business people the crushing rates of present levied were beyond the capacity of the town to carry. The continuance of such rating must inevitably ruin business and destroy the bondholders' security. • "That a eommission be appointed on behalf of the bondholders arid ratepayers, to inquire into the present nosition and the prospects of thb town, to recommend a maximum rate that the ratepayers can reasoriably he expected to pay to meet the reduced loan interest and general administration expenses. "That the possibilities of further economies in borough management be investigated by the commissioner, and ■f-hat he be askqd to report on the advisability of the Thames harbour he'"na- vested in the borouah council.

"That a strenuous protest he made against any seizure of sinking funds if such funds are to be applied direetly or indirectly in payment of acerued and unpaid interest without adjustment of the principal or interest on loans. "That the council be asked to cooperate with the commissioner, if aplointed, in the management of the borough. * ... "The council he requested not to increase the rates for the next financial year, but endeavour to reduco same, and should the council be unable to legally operate without an increase in rates, that it be asked to "onsider its resignation as a body in -he protection of the interests of the "atepayers."