RATES AND TRAMS.

Auckland Star, Volume LIV, Issue 105, 4 May 1923, Page 4

RATES AND TRAMS.

The satisfactory fnct emerging from the statement uf finance submitted to the City Council last night which will make tiie moat appeal to citizens, is that rates will not lie raised in the current year. There was a slight, foreshadowing jof an increase in the Mayor's statement i before the elections, but this lias been avoided. Hates have been raised In certain directions and lowered in others, (with the net result that the total reI mains at 3/11. With the increase in the valuations tliis is as it should be. It should If noted that the growth of borrowing entails an increase of twopence in the special rate, a reminder that borrowing for unproductive purpose- lias to "be paid for. [t may also lie pointed out that the general account will benefit this year by an additional j C")f«li) drawn from the waterworks account, but for which the reduction of a penny in the pound in the general rate would not be made. That, is to say, the general rale is being kept down by profits on the water, some of which come j from areas outside the city. Turning to the trading accounts, we hope it will not be overlooked that there is a debit balance of over £5000 in I the lish market enterprise. The tram- | ways have had a very good year, for the council, after spending the very large sum of £ltiti,ooo on repairs a:id maintenance, is able to show n gross profit of £12-1,000, and, after paying loan interest, and taking £3500 as its percentage of profits and f:!000 for the accident fund, is left with a net profit of £11500. Tiic amount spent on maintonI ance has been a feature of the year's work; it. includes £51,000 for car equipment and £70,000 for permanent way. It is clear that, for some time before the I council took over the service maintenance had been kept at a ligiiro below requirements. In its first year the council doubled the expenditure of the company in this direction, ami the expenditure ill 1022-23 was nearly twice ! the council's first total. It is proof of the ; soundness of the business and the proI gress it has made, in the last three or four years that the council has been able to spend so much money on equipment and tracks and yet show a substantial profit. Those who grumble at the high fares have the satisfaction of knowing that the have helped to put the concern on a sound basis. Having used profits in this way, the council should be in a position to consider reduction of fares, in which a beginning has already been made. We hope that in this the suburban bodies will be given the voice to which they ure I entitled. Finally we may point out ) again that the city benefits by not. j having to pay taxation. The company J paid over '£20,0011: the city pay's nothing. The community gets the I benelit in cheaper fares than would be I tlie case if municipal enterprises wore lon the same footing as private • businesses, but the State revenue so j surrendered has to be found by other j taxpayers.