LOCAL BODY EXPENSE

Sun (Auckland), Volume IV, Issue 1008, 26 June 1930, Page 15

LOCAL BODY EXPENSE

BUSINESS MEN'S ATTACK ANSWERED BENEFITS FOR CITIZENS The criticism made by the Auckland Chamber of Commerce on the rapidly increasing indebtedness of local bodies in Newr Zealand, and the assertion by a member that the chamber was fully qualified, as an organisation of business men, to condemn the possibility of extravagance, have been answered in a letter forwarded to the chamber. In the letter. Mr. S. Gray, of Essex Road, Mount Eden, declares the principal cause of the large increase in local body indebtedness to be the public call for the ownership of transport, electric lighting and gas. to be vested in municipalities. Whether this was wise was .open to question, but the local bodies should not be blamed for borrowing to comply with the demands of the public. . “Local bodies would possibly bo strengthened . by. the presence of more businessmen.” Mr. Gray states. “Members of the Cbalinier of Commerce might consider the advisability of obtaining seats on the various councils and acquainting themselves with the problems from the inside.” LOAN DIVISION Mr. Gray finds that 22 per cent, of the loan money has been spent on roads, 20 per cent, on drainage and sewerage, 22 per cent, on electric supply and lighting, 7£ per cent, on transport, 1£ per cent, on gas supplies, lh per cent, on municipal buildings, and slightly above A per cent, on parks and gardens. He submits that no extravagance is shown in the list. lie continues: “It is true that they do not usually yield a revenue to local bodies, but the improved roads save users of motor-traffic much more than increased rates cost them. If drainage works save a family one illness a vear. the additional money in rates is saved many times. A business man may refuse to spend money which will not show a definite return; the function of a local body is not to make money, but to provide benefits for ratepayers and residents. “It is better business to put down a road in solid material and thus reduce maintenance to a minimum. Such maintenance, with interest and sinking fund, will be found to be less* than the previous maintenance charges, and will permit the public to have a bette»~ road.