BOROUGH BORROWING.

Wairarapa Age, Volume XXXII, Issue 3199, 27 May 1909, Page 4

BOROUGH BORROWING.

The borrowing question has once more assumed an aggravated form so far as the Masterton Borough'; Council is concerned. Without desiring to be "preachy," or in any way sug- j gesting that we possess a special knowledge of "the intricacies of Borough finance," we have, or. more than one occasion previously, ventured to express an opinion as to the financial policy that should be adopted by our municipal council. We have used the word "policy," and have used it advisedly. Spasmodic action is, as a rule, pure foolishness in matters of finance. The Borough Council should adopt, and carry out if they can, a financial policy that will, say, in the course of five years place the town in a better position than it is to-day. The Borough Council's present position simply amounts to this: —that there is a considerable overdraft, on which a high rate of interest is being paid, a large amount of indebtedness incurred to effect various improvements, and it is asking for a further sum ot £12,000. The Mayor, by the use of his casting vote, has decided that the Council shall ask the ratepayers to sanction a loan of £12,000 for the construction of improvements of the principa i*oads and footpaths in business and residential parts of the town. In view of the solid opposition that exists in the Council to the Mayor's proposal, it would seem to be almost useless for him to proceed with his object. The schsme itself appears to us to be quite premature, and not at all adequate to the real needs of the town. A loan for drainage purposes is undoubtedly required, and we further admit it is quite impossible to defray the cost of new and necessary works out of revenue; at the same time, the Taxpayers are entitled to have a comprehensive, and undeniably satisfactory, financial policy submitted to them. We do not believe in, borrowing to wipe out the overdraft, but tne Council should seriously consider the adoption of a policy whereby the overdraft may be eventually extinguished. We are perfectly sure that before the ratepayers will sanction the raising of any further loans they will have to be thoroughly satisfied as to wherein arise the advantages of further borrowing. We are confident that the Borough could borrow a large sum for various purposes with advantage, but the action is not one to be lightly undertaken, nor in ignorance of what the result will be.