The Borough Finances.

Thames Star, Volume XI, Issue 3560, 25 May 1880, Page 2

The Borough Finances.

A meeting called by the Mayor at the requisition of Councillors McGowao, Mennie and Wilson was held this morning in the Borough Council Chambers. His Worship the Mayor presided, and there were also present Councillors McGowan, Marshall, Osborne, Mennie and Bawden.

Cr Mc&owan said that as one of the conveners of the meeting he would just state the objects they had in view when they had decided on calling it. He Said that the importance of the matters which ihej wej'e about to discuss was a sufficient excuse for the action of himself and colleagues in calling the meeting. The question of the finances had been brought up at several meetings of late, but no practical result had accrued from those meetings. The question is oue to be considered by the whole Council in order to see if there was any way of getting out of the present difficulty. But the difficulty could not be called a real one, inasmuch as the Borough were not in debt themselves to such an irretrievable length, but that through foolishly becoming guarantees for other bodies., the Borough had become involved in sach difficulty. He was not going to point oufc the works which had been foolishly entered into because that would be useless. The Borough would soon have outstanding liabilities to the amount of £1000 —[0/ Osborne: £1600]— and it was necessary that a loan be floated to enable them to meet those liabilities. The Committee did not take that view of the matter, and His Worship had not seemed to take that interest in the matter that it deserved. Apart from the fact that goldfield municipalities are not considered as trustworthy by capitalists, the plan proposed for raising the money was a perfectly sound and feasible one. To his mind three courses were open to the Borough. The first was one that bad been adopted down South, but

he did not consider ifc a good one. It was for the Council to issue debentures itself, and there would no doubt be plenty of people who would take up the debentures, and receive them as a guarantee of payment of accounts unlil a special rate brought in sufficient to liquidate _ them. The second was to raise just sufficient money to pay the amount owing under the head of current liabilities. The third course was to give all the power we have over Charitable Institutions, Hospitals, etc., to the Government aud admit that we have not the ability to carry on the business which we undertook. With regard to the banking question he did not think the bank had treated them with the consideration they deserved. The Bank of New Zealand must have made a lot of money out of the Borough, and it was, he thought, treating us with scant ceremony or consideration. The overdraft of £2000 was a mere bagatelle to the amount of ratable value, independent of the gold revenue. Another matter requiring consideration was that of subsidies. The Government by stopping the subsidies had put them in the present mess. The. Council, reckoning on the certain payment of subsidies, had gone on with works and now that the Government withdrew their aid the effect was felt. The whole of the difficulty they had now to face was caused by the Borough omitting to conduct its own affairs. They had meddled with the affaifs of other bodies, aud had taken upon themselves the control of the water supply. But in reality they had not funds to carry their intentions into effect. Had the Council been wise enough to attend to their own business, instead of interfering with that of an outside body, this difficulty would not have occurred. The way we must do was to reduce the staff of employees and cut Sown expenses to the last farthing.

Cr Mennie said he thought the Council were drifting from bad to worse, but he hoped that they would arrive at some definite conclusion on the subject. Cr McGowan had mooted three courses but it would not do to decide without giving the matter the most mature deliberation. He was afraid that with regard to the first proposal, people would not take up the debentures issued by the Council. He did not consider the action of the Government just, in throwing the burden of charities on the localities in which they are placed. This is all right in big towns, where there are plenty of people to bear the expense, but it is too much to expect here. If the Government had continued to cheerfully grant aid to the Thames it would have been all right, but it had broken faith with them, and they were therefore justified in refusing to bear the responsibility of their charitable institutions. He quite agreed with Cr McGowan that the Bank had not treated the Council fairly. When the Borough was in a healthy condition the Bank accepted their guarantee, when lending other bodies sums of money, and he did not think they had treated the Council at all justly. We cannot afford to go on in the way we have done, and in future the Council would be warned against the reckless expenditure of the past. Cr Marshall said that his idea was to make reductions in the staff and stop all works, and only keep one or two man on to look after the drains, etc. He thought if the Bank saw the Council were in earnest in reducing the expenditure that there would be no difficulty in getting the money. They might sirike a special rate which would bring in £900, and no doubt the creditors of the Borough would wait for two or three months.

Cr Bawden said that he was of opinion that discussing the question of a loan only weakened the credit of the Borough. He noticed that in oases of emergency a fire rate could be struck, and he thought a water rate could be levied as well.

The Town Clerk said that the present difficulty was a result of the policy of the late Mayor. He had reduced the liabilities by some £4900, and that strain had been more than the Borough could stand. In figures, however, the Borough was in a first-rate position. The licenses and rates now coming due vrould pay off the £1600 due to Mr McCaul, and would with £410 due from Government enable them after pacing outstai ding accounts to put £500 to reducing the overdraft. Cr Osborne said they had taken charge of the Water Supply, but it would cost fully £10,000 to carry it on. The Mayor said he was glad to see that the matter had come under the consideration of the Council, and he hoped good results would ensue. He was opposed to the loan mooted, on account of the impossibility of obtaining it. The Thames goldfield was looked upon by Southern neighbors as being a worn out goldfieid, and what would the gentlemen capitalists of London think of the Thames ? He also contended that a loan was not necessary, and recommended the levying of a fire rate.

Or Osborne said that someone should go to Wellington, and s interview the Government about the mpney which was justly due to them. The Mayor said he should be visiting Wellington' during the session, and if he could do anything to further the interests of the Borough he would do so. Cr Marshall gave notice of motion to the effect, " Thafc*at nert regular meeting the Council will cons'der the reduction of expenses of the Council." Cr Osborne moved—" That the Foreman of Works be informed that at next meeting the Council will consider the reduction of staff."

This, however, fell through for want of a seconder. . .:

Cr McGowan moved, and Cr Marshall seconded," That the Mayor, Crs Osborne, Bavvden, and Marshall be a committee to make arrangements with Mr McCaul." Carried.

This concluded the business.