BOROUGH FINANCE.

Taranaki Daily News, 18 January 1921, Page 5

BOROUGH FINANCE.

EXPENDITURE ON STREETS. RETRENCHMENT NECESSARY. I . A .FINANCE STRINGENCY# Borough finance, particularly the position of the general account, was discussed by the New Plymouth Council at last night’s meeting. The subject was introduced by the presenting of the report of the general manager (Mr. F. T. Bellringer), as already published in the Daily News. The report, it will be recalled, pointed out that the position of the account as at December 31 showed that the expenditure for the nine months was equal to the amount which it was estimated would suffice for the twelve months ending in March next. The Mayor (Mr. F. E. Wilson) said the question arose as to what” could be done to prevent the position becoming worse during the coming three months till the end of the financial year. Personally, he did not believe in bank overdrafts for local bodies, as they were a temptation and a share. He felt sure the council had paid in interest more than would pay off their overdrafts several times over. An overdraft was a perpetual thing and was never reduced, and the council had to "keep on paying interest. He therefore concurred, with the view of the general manager that an effort should be made to keep it down, the view being to ultimately wipe it off. One matter that would need to be kept in view was that if the council were unable to do any extra work they should see that what road work had been carried out was not allowed to go back.

The general ’manager said lie did not suggest that any risk should be taken in regard to the roads, but he thought that they might defer work on any roads which the engineer might consider could safely stand over for another twelve months. He quite agreed that any road laid down should not be allowed to drift. Cr. J, W*. Hayden asked what would be the position in regard to applications for extensions of water. The Mayor said he thought •the’ council, if possible, should refrain from authorising any new work until after March 31. The general manager said that as the report stated in previous years the plant was put on to loan works and the loans carried the cost of working the plant, but this year thero was no loan expenditure and the general account had had to carry the wtiole burden. The question of reducing street expenditure for the ensuing three months was finally referred to the streets subcommittee.