MAYOR OF OTAHUHU

Auckland Star, Volume LXIV, Issue 97, 27 April 1933, Page 8

MAYOR OF OTAHUHU

COMING ELECTION,

ADDRESS BY MR. CLEMENTS.

DIFFICULTIES OF FINANCE.

Addressing a crowded meeting at the public hall, Otahuhu, last evening, Mr. H. T. Clements, Mayor of the borough, who is seeking re-election, confined himself mainly to replying to criticisms of himself and the council made since the campaign opened. Mr. A. McDonald presided.

Regarding hie own qualifications, Mr. Clements said that since he was first elected to the council 16 years,ago, he had been continuously a member of the works committee, and was now" one of the largest individual ratepayers in the borough, a year. The financial position of the borough was difficult, Mr. Clements admitted, but not nearly as bad as had been uaid; nor had this been brought about by wasteful or unnecessary expenditure. When he took over as Mayor the borough's overdraft was £13,755, and lAe council had, in two years, overspent its estimated income by £6737. Since his election, the overdraft had been increased by £7340, but the deficit had been reduced by £4461. The growth Of the borough's liability to the bank was not the result of extravagance, as the expenditure had been cut down to a minimum, but of the difficult times. Of the total levy of £17,489, only £5097 remained, after special charges had been paid, to meet all general expenses and maintenance. Assuming that 75 per cent of the rates were collected, only £4376 was available, and this was nearly equal to the cost of running the borough. A "Breathing Space." To raise the rates, said the speaker, would throw the whole burden on that 75 per cent who paid, and he confessed it would be better for the council-to wait until the unpaid rates were wiped out, giving a "breathing space" to the people who could not pay. Judgment for the amounts would have to be taken, however, so that they were a charge on the properties. The general rate he considered too low, as only 2Jd in the £ was collected, as compared with s£d in some other boroughs. A rate of 4|d would return £3400 more. Mr. Clements considered that it would be sound policy to cut out the sinking fund payments for three years, yielding about £1500. If this were done the general rate could be raised to equal the sinking fund, without making the rates any greater. The losses on. the quarry would have to be cut, and he thought that it could be arranged with the Hospital Board, from whom the council was purchasing the land, to withhold the capital payments for three years. This would save another £1500., With reductions of interest amounting to about £1600 and the cutting down of material used in the borough by £500, approximately £15,000 could be saved in. three years. The transfer of £1128 from the drainage loan account to the ' general account had been done to save interest. Water Supply and Quarry. The council had .beeri endeavouring to find a new water supply. The-well that had been sunk by a previous council had not produced as much as had been expected. The Westfield Freezing Co. had ceased to use' the Otahuhu supply, but when the council decided to, Work' the quarry at a lower level, an arrangement had been made whereby the company installed pumps to take away the water out of the quarry, and allowed the council what was necessary for the quarry supply. The only customer that the borough had ever "turned down" was one firm that asked some years ago if the council could supply 1J million gallons a week.

The loss of the quarry, Mr. Clements, eaid, was £6364, which included unpaid accounts and a cost .of £100 for five years for office administration. The land had a known value, and when roading was carried out the borough had saved about £1400, as 14,500 yards of metal from the quarry had been charged at 10/ a yard, whereas the ruling price was from 12/ to 14/ a yard.

Under the No. 5 scheme, £3541, had been spent on material and £1094 on supervision in the past two yeare, eaid Mr. Clements, and much valuable work •had been done, including the formation of Sturges Park, which, when completed, would be a playing area second to none in New Zealand.

A vote of confidence in Mr. Clements was passed without dissent.