A CITY COMPROMISE

Evening Post, Volume CXVII, Issue 103, 3 May 1934, Page 10

A CITY COMPROMISE

The City Council's financial policy for the current year is a compromise between the views put forward by different sections. Claims have been made that all the money that can be spared should be returned to the ratepayers; thatit should be used to restore wages and salary cuts, and that it should -be applied in employing more men on useful works. The council has resolved to do all these things in part—to give -a little to present employees, a ljttle to the ratepayers, and a little to former employees who were discharged in the retrenchment' period. We cannot wholly approve this method, but it is the method which often finds favour under democratic government, and it can be understood. ' Nevertheless, it will not be of great benefit to the city. The rebate on rates will be small. Councillor- Butler calculated it at Is 2M on a valuation of £100 (equal to 2s 5d on'the average suburban residential section), and 19s 4d on £1600 .(which would be a business property). In this way the whole £10,000 will dribble out, in amounts so small that it cannot have an appreciable effect on either prices or employment. Incidentally it should be noted that some ratepayers will have to pay more than last year, instead of less. The council has decided to levy rates (under the" authority given by Parliament last session) on 75 per cent, of the roll valuation where owners have not secured a special valuation. This will mean that the inequality arising from special valuations will be. removed, and that "those owners Who secured a benefit: last year will not retain it. The' nominal rate':-struck will be higher than last year to com--pensate for the lower valuation, but the total sum collected -will be-less by £10,000, representing a reduction of 2 per cent! to the'owner whose property has not been revalued: No doubt this method will cause confusion and irritation among, ratepayers, but it is the only method applicable until the complete revaluation is made. The council should,, however, continue. to press for the speedy completion of the revaluation. Apart from its small rate reduction the council has resolved to -make a small restoration of wages cuts. The total amount The total'amount spent in this way from rates will be less than the sum returned to ratepayers— £6000 compared'with £10,000—but employees really gain much more than ratepayers. In the first place the restoration begins from July 1, so that £6000 is the • cost for nine months. Next year—a full year— £8000 will be the cost.- Further, the same policy will be applied in the council's trading departments (tramways, lighting, and milk) having separate-accounts, and whose finances come from consumers. Thus the total addition to corporation pay in all departments will greatly exceed the £10,000 dole to ratepayers. As the distribution will- be amongst .-a smaller number (as against the great number of ratepayers sharing the £10,000 rate reduction) the individual share will be greater. Even the employee on £2 a: week will receive £3 15s extra this year and. £5 next year, the former sum being roughly equal to the rate reduction on a property of about £6000 unimproved value, or, say, £20,000 capital value. We' do not oppose strongly this restoration. No doubt the lowerpaid workers need the money; but we are still of opinion that the retrenched employees should have had the first and greater share. As it is, so far as we can read in die council's resolutions, they will get £10,000, and even that has to come by the doubtful expedient of another raid on

Lighting Department funds. The Mayor wished to give the retrenched men first consideration, but the councillors holding other, views—either favouring ratepayers or .present employees—compelled . him, to compromise. The Labour councillors, of course, will say that they have not given preference to present as against dismissed employees. But all that Labour has offered, the dismissed employees was to come from an increase of rates (which there was no prospect of the council accepting) or from a big loan" scheme, which we have already pointed out is op-n to most serious objections.