BIRKENHEAD FINANCES.

Auckland Star, Volume LXIII, Issue 207, 1 September 1932, Page 20

BIRKENHEAD FINANCES.

"DRASTIC CUTS" NEEDED.

REVIEW BIT MAYOR.

APPEAL TO RATEPAYERS.

"The financial position of the borough is serious, and we will have to face the position," said the Mayor, of Birkenhead; Mr. G. Mills, at a meeting of the council last night, when he gave a review; of • the -.finances.-; "We have been drifting lor the past three years," he continued. He was not criticising administration, past or present. At present there "was' a debit balance of £5500, and interest"commitments for, August were £1£42. In 1930 the overdraft was £1060; in 1931 it was £3060. Thie year the limit was £6000. Mr. Mills discussed sanitation and water utilities, and said that on • tho latter there was a tremendous deficit. "You liave been taking money out of capital to bolster" Tip these two accounts," he said. "The system of accounting was wrong. There should be two separate banking accounts." - At the end of March, 1932, rates outstanding amounted to £6200. Since then about £900 in rates had been collected, making rates outstanding. £5300. In no circumstances could ' they increase the overdraft. He intended to ask the rate collector to act as a collector of water rates. "I am asking the ratepayers of the borough to come forward with their back and outstanding rates to help tide us over and avoid paying 7 per cent to the banks," eaid Mr. Mills. Mayor's Suggestions. Mr. -J. Macdonald: Some time ago I wanted an inquiry. Tho council turned it down flat. This is the result. "This is not new," said Mr. E. J. Sinel. "I will be pleased if you can think out some scheme." The Mayor: I intend to make certain recommendations. We will have to make drastic cuts. He suggested temporarily curtailing the number of street lights, laying up one of the trucks, and stopping the cutting of kerbstones at Lake Takapuna. "The overdraft is practically all used up; we have spent £5500, and there i 3 practically six months to run. We will have to make drastic cuts. We cannot cut down staff. We cannot exceed our overdraft, and we will have to reduce expenditure." Mr. J. A. Campbell suggested that a special night should be set aside to discuss the position; "Position Serious." Tho Mayor: I do ilot want any member of the council to think I am an alarmist; but we have to face the position. We must protect the borough. The position is serious. "I think that the meeting should be in open council," rejoined Mr. Sinel. "The public will then know that we have been game enough to face the position." He moved an amendment in that direction. The amendment was lost and the motion carried.