OVERDRAFTS AND RATES.

Auckland Star, Volume LI, Issue 194, 14 August 1920, Page 14

OVERDRAFTS AND RATES.

MUNICIPAL QUANDARIES.

AUCKLAND'S GRATIFYING

BALANCES.

BUT THE FUTURE TO FACE.

The financial embarrassments of tho Christchurcli City Council, making for an £80,000 overdraft this year, and necessitating an increase in the general - rates, were the bat-is of au inquiry oi the ■ Mayor of Auckland this morning respecting our comparative position. "The position in Auckland, so i-ir as the corporation requirements arc concerned to meet increased expenditure, are relatively the same as that reported t>cm ■ Christchurch," said Mr. Gunsou, "but the ■ Auckland city administration has consistently followed the policy of declining to allow its expenditure to exceed ita revenue. The general account in Auckland for the last live years has been in credit, and upon April 1 last the credit balance brought down was f 10,800, whilo the forecasted credit balance for March 31 next is £4636, from which it will be Been tiiat the Council is working on Bound lines. All the other accounts are * in credit, and the Council hopes to them in that condition. This, of course, I does not apply to the Anzac Avenue, * which is a special property account, the ; debit in which will be wiped oil by the liquidation of the properties which is now proceeding. All the trading accounts are in a thoroughly sound position, and have substantial credit balances, each department operating on its own finance a." WHAT OF THE :\IORROW? "The Council has endeavoured during the past five years to avoid increasiug the rate, and it has substantially succeeded. It was with the greatest dilticulty we were able to arrange on such a basis this year, particularly in view of the * heavy demands from some of the outside ; bodies for whom rates are collected, such ; as the Hospital Board. It will be im- - possible, however, if the Council is to carry on and maintain thoroughly the city services and meet the general mainC teiiance demands, to avoid doing without ! a considerable increase in its revenue next year. The increase in valuation which has helped this year to prevent a substantial advance jn the rates will not be available to any ippreciable extent next year. The ratepayers must, therefore, face the position, unless the corporation is to provide less efficient services. It has to be berne in mind that the money expended to-day will only accomplish about one-half of the work, ; roundly speaking, that the same amount - would have accomplished seven or ten years ago. The experience of Christ-

church, therefore, is not singular in the

~ matter of expenditure, though I am glad ! to say that we have not got, in addition I to the difficulties outlined, to face a debit ; balance in our accounts, which, however they rise, sooner or later have to be dealt with. But unless the Council con- ; tjnues to hold a tight rein on its finances it would soon become involved in quite as difficult a position as that reported from Christehurch. It is much more difficult to decline applications for which no 5 financial provision exists than to accede * to them, but it ia imperative that the „ Council adheres to that policy."