HEAVY BURDEN

Rotorua Morning Post, Volume 2, Issue 332, 20 September 1932, Page 4

HEAVY BURDEN

The financial difhculties of the Borough of Thames which has been placed under the control of Commissioner, Mr. C. L. Grange, recently Town Clerk of Invercargill, coupled with, the inquiry by a Commission into the administration of the city of Wellington, draws pointed attention to the heavy local borrowing which followed the close of the Great W ar. The development of electric power, provision of modern roads and other costly schemes were entered upon in full confidence that a prolonged era of prosperity was assured and unfortunately for the taxpayer every item on the . expenditure side was at a peak price, with the result that works cost probably double what they would in normal times, imposing a burden of debt that is now creating serious concern. The local authorities handbook for 1932 shows that the loan indebtedness of local governing authorities in 1910-11 was £19,104,000 while in 1930-31 it amounted to £72,686,000 having praetically quadrupled in 20 years. The amount per l^ead of the population has risen r - - « • 71 • . .. V . . .. , ,

from £17 14/- to £48 2/2 and the annual loan charge from 18/2 to £3 3/11 per head. Much of this money has been expendecl on revenue-producing assets, but the high capital cost due 1 chiefly to inflated prices has sad"W1 authorities with a burden that is now proving deeidedly irksome.