Auckland Rates Increased

Sun (Auckland), Volume 1, Issue 55, 27 May 1927, Page 11

Auckland Rates Increased

Penny In the Pound Added Question Debated by the Couneil THOUGH only one penny in the pound was added, when the new rates were fixed by Auckland City Council last evening-, the increased demands sent out this year will amount to £32,851. All the rates remained on the same basis as for the past two or three years, with the exception of the drainage rate, which has been increased from 2d to 3d in the pound, making a total rate to be struck by the city of 3s lid instead of 3s lOd in the pound.

r FM.IE increase in the drainage rate, however, only increases the estimated returns from that rate by £10,342, and portion of that must be credited to the same reason as the ineraese on all the rates, due to increased valuations, and more land coming under rating. - In presenting his figures the Mayor, Mr. G. Baildon. has allowed for £4,550 being in arrears at the end of the year, and the estimated receipts from rates compared with tliosb of 1926-27 are as follows: Class 1926-27 1927-2 S £ £ General, Is 91d 173,000 159.700 Hospital, 4ld 38,130 40,439 Library, Id 8,400 5,980 Drainage, 3d 16,750 27,092 Sanitation, 3d 23.525 24,590 Interest, Is 2d 118,650 126,030 Totals £ 375,755 £416,831 A committee of the whole council recommended the adoption of the new rates, and the motion was moved by the Mayor, who did not elaborate. AN AMENDMENT Cr S. I. Crookes stated he had said in committee, and felt impelled to say in open council, that he thought the finances could be rearranged to save an increase in rates. He thought the transfer of £15,000 from the water account to general account could be increased to £25,000, the works being done charged to capital account. They knew times were bad, and wrong for an increase in rates. It seemed wrong to him that the consumers who had provided the profit on the water account should be squeezed for more rates. He moved accordingly. Cr. Eady seconded the motion, mainly as a protest drawing attention to the fact that the council was compelled to raise money for bodies on which they had no control. Cr. J. B. Paterson said the drainage board rate had really been too low in the past. ON HORNS OF DILEMMA

Cr. Allum said they were caught on the horns of a dilemma, as they could not stop the works they had in hand. He suggested a perusal of the parks and reserves vote, because in it purchase of land and houses was amounting to £17,000 or £IB,OOO. It was capital account expenditure and should not be done out of revenue. He had the statement of the officer-in-charge that the money must stqs* in the water works account, or the ‘ officer would have to put off 40 men. He believed this was the last year when the water account would contribute to the general fund. In his opinion the increase was perfectly justified. Had there not been so much unemployment they might cut down other sections, such as the works department. It was better to pay the extra penny and keep the men working. Cr. A. J. Entrican said the using of capital account money meant more loan money, and more rates on the interest account, so that did not get away from the difficulty. CAN’T RETAIN 3s 10d RATE

Miss Melville did not see that the council could possibly retain the 3s lOd rate. It was not so long since

Hie rate was 3s lid, and when it was reduced it was obvious it could not be a permanency. With regard to the Hospital and Charitable Aid Board rate, they had no control over that, and the fact that the drainage fund had started off with a deficit was accountable for the extra rate there. As for the waterworks, the works they had on hand would not allow them to cut down the expenditure any more. She commended the action of a neighbouring council which had said quite frankly that it was raising its rates for the benefit of the unemployed. Auckland, to some- extent, was doing the same, but was not sayi-ng so. Cr. J. Dempsey protested against reference to the Hospital Board as an irresponsible sort of body. (Laughter). “SWALLOWED” Cr. A. J. Stallworthy congratulated the staff on the fact that estimates involving so much money were swallowed by the cobmcil practically ‘*en bloc” (cries of “No!”). They were departniental estimates more than they were committee estimates, or estimates drawn up by the representatives of the ratepayers. If this was so the departmental officers were likely to be conservative when estimating the revenue for the year. \ hey had to be so to balance their budgets. On the expenditure side the opposite was the case. He contended that there was no justification for the increased rates. The increase was too small to make any difference between a policy of stagnation and a policy of progress, but at the same time it would have an adverse effect on administration and on public opinion. INCREASING UNEMPLOYMENT Cr. Mcßrine said Cr. Stall worthy hardly* did the departmental officers justice. Last year there was an adverse balance of £38,000. He was against the amendment, because, the result of it would be to cut down essential work. Some 40 men would be thrown out of work, and that would have a more adverse effect than any increase in rates.

Cr. Crookes, making an explanation, said he had no desire to increase unemployment. There was eight months’ work in sight, without the sums under discussion.

Cr. W. H. Murray said he would take it for granted that the figures had been compiled carefully by the committees, and substantiated by the heads of departments. He would support the extra rate. The Mayor said he was as keen as anyone to keep the rates down. He could assure Cr. Stallworthy that the works and parks estimates had been very considerably cut down after they left the heads of departments. They could not reduce them further. The Mayor mentioned that he had been reported as saying, prior to the election, that he would not increase rates. He had said that he would not increase rates if he could avoid it. The amendment was lost, those voting for it being Crs. S. I. Crookes, A. .1. Stallworth y, L. A. Eady, J. Ashley* and J. W. Court.