“NEST-EGG” TO VANISH

Sun (Auckland), Volume II, Issue 385, 20 June 1928, Page 12

“NEST-EGG” TO VANISH

Council Passes Estimates RATES TO BE INCREASED HALF-PENNY AFTER a two-hours’ discussion in committee last evening the City Council adopted the estimates and agreed on a rate of 3s 11 Ad, an increase of a halfpenny compared with last year. The town clerk gave an explanation of the council's decision to use the £15,875 accumulated sinking fund of the electric-power plant loan, the “nest-egg” which it has been found necessary to use.

tlie last council meeting, and last evening a special meeting was held to consider them. The proceedings had no sooner opened than Or. J. A. C. Allum moved that the council go into committee, on the ground that the business to be traversed would be the same which had been discussed by the Finance Committee. An open debate could be held afterwards, he suggested. This was supported by Cr. Entrican, on the ground that members could not fully discuss the estimates and speak more than once in open council. Cr. KT. J. Coyle raised an objection, but he was supported by only two or three councillors, and tne few representatives of the public who were present were requested to leave. UTILISING A NEST-EGG The council remained in committee for two hours, and requested the Press to report an explanation by the town clerk, Mr. J. S. Brigham, of the transfer of £15,875 from the accumulated sinking fund of the elec-

trie power plant loan to the interest account. A suggestion had been made that instead of this sum extinguishing the loan at the end of this year, the action in using it would necessitate a renewal. Mr. Brigham said the actual position, created by the Power Board Act, 1921-22, was that there was a sinking fund but no liability, and the council was entitled, on the date of maturity of the loan at the end of this year,

to use the sum in hand in any method it thought advisable. The loans would be met from debentures issued to the council by the power board. He had hoped that the £15,875 would have been available to strengthen sinking funds, but it had been considered wise to use the amount as a receipt in the interest account, saving the necessity of increasing the rates by another penny. The council-in-committee made no alteration to the estimates, and on resuming in open council the Mayor, Mr. G. Baildon, moved their adoption. ONLY ONE SPEAKER The only councillor to speak was Mr. J. A. C. Allum. He said there were a few questions that required to be cleaned up, and one of these was the great increase in the interest payments. It was shown that there was a greater increase in the estimates than was accounted for by the sum of £805,000 raised during the year. They now understood that, due to the council’s desire to meet the unemployment position, the estimates of interest charges last year were raised from £323,300 to £343,000, the latter sum representing the sum paid. That sum was an increase on last year, and the increase was carried to this year. If there was any criticism of this item it could be shown that if the council was due for any blame it was for expediting works to try and meet the unemployment position. It was incorrect to say that the rates had been increased. Technically they had been, but the increase of a halfpenny was due entirely to the increased hospital rate. The amount being paid to the hospital was exactly double that of 1924-25. “I am extremely disappointed at the position of the maintenance of streets account,” continued Cr. Allum, who referred to the understanding that on the expenditure of the £710,000 loan putting permanent surfaces on the secondary streets there would be a heavy reduction of maintenance costs. This was far from being the position, and he wished to suggest that the council should take into serious consideration the carrying out of some of the street work, both maintenance and capital expenditure, by contract. They could not face the position as it was, and the calling of tenders would let them see where they stood. They were faced with the difficult position that they had to reduce expenditure, and at the same time face the unemployment position. He indicated that he would move at the next meeting of the council that the Works Committee bring down a report on the possible works that might relieve unemployment, and that the Finance Committee then discuss the question of finances. This closed the discussion, and the estimates and rates were adopted.