MOUNT EDEN FINANCES.

Auckland Star, Volume LXII, Issue 143, 19 June 1931, Page 5

MOUNT EDEN FINANCES.

SHARP DISAGREEMENT. MAYOR AND FORMER MAYOR. RETRENCHMENT OF STAFF. There is a sharp difference of opinion between the Mayor of Mount Eden, Mr. R. McNab, and the former Mayor,, Mr. E. H. Potter, regarding the condition of the borough's finances. Mr. McNab, in a statement yesterday, said that as the result of a complete reorganisation of its inside and outside staffs, the Mount Eden Council would make an estimated saving of £2160 for the remainder of the current, year. The council had also decided to increase the discount on rates from 2J per cent to 3§ per cent. "Since assuming office, the various committees of the council have made a thorough investigation of its finances, and have reviewed the question of staff," said Mr. McNab. The committees' recommendation had been considered at two special meetings of the full council. In order to make a saving of, roughly, £2000 the services of several members of the staff would have to be dispensed with, but the present conditions gave the council no option in the matter. With the help of the Hon. A. J. Stallworthy, said Mr. McNab, the annual audit of last year's accounts had been expedited. The accounts showed that the new council had commenced the year with a debit of £30,801 in the general account. The rates would be the same as last year, 4/2 in the £. For rates paid within a month there would be a discount of 3'J per cent, as compared with 2£ per cent last year. " Extraordinary." "The statement made by Mr. McNab is so extraordinary that I must say something in response to it," said Mr. Potter, this morning. "He says that the staff has been reorganised, and that £2160 has been saved for the remainder of the current year. The salaries of the office staff and inspectors amount to £3200, and to save £2160 for the halfyear seems an extraordinary feat.

"I understand that old servants of the council who have been employed for many years have been put out of office, and others employed without calling for applications. This has been done in committee, so that no reports have appeared in the Press. We have been told of Mr. Stallworthy'e goodness in bringing up the auditors. Apparently Mr. McNab either suspects something in the nature of fraud, or wishes the public to think so. His statement of the amount at the debit of the general account is misleading. The statement hae been repeatedly made that the borough was £40,000 in. debt. Now, it is £30,000 in debt. The truth is that that sum is arrived at by neglecting to state the assets against it. It is not usual in a balance-sheet to state the liabilities and omit the assets. Whether Mr. McNab does not understand the position or wishes to misrepresent it, I cannot say. "In spite of the tragic position, the rates are to be the same as last year, with the addition of a discount for prompt payment of 3J per cent, in place of 2J per cent, which will amount to a further £200. The act towards old servants of the borough is one that will be reprobated by all fair-minded ratepayers."