CITY RATES.

Press, Volume LXV, Issue 19690, 6 August 1929, Page 8

CITY RATES.

big increase this YEAR. HIGHER VALUATIONS. PRE-ELECTION PLEDGES. Eecently Christchureh was revalued and the City Council is striking its rate for the year 1929-30 on the new valuation. For the past five years the rate has been struck on the valuation which eame into force in 1922. From 1924 to 1929 the general rate was 3fd in the £, and the total amount of *the levy was as follows: — £ 1924-25 .. .. 124,007 1925-26 .. .. 124,618 1926-27 .. .. 125,093 1927-28 .. .. 124,539 1928-29 .. .. 125,079 For the year 1929-30 the levy is £147,536. The value of the City, according to the old valuation, was £8,894,514, and it is now £12,073,358. A rate of 2583-625 d in the £ will raise a total of £147,536. A supplementary report, dealing with the estimates attached to the report of the Finance Committee stated: The Committee submits herewith the general estimates for the current year, and recommends that a general rate of twopence and five hundred and eightythree. six hundred and twenty-fifths of a fenny in the £ be struck. This rate is estimated to produce £147,536 8s Bd. and provides for a contingency fund of £562. The Valuation Department has assessed the unimproved value at £12,382,931. The Committee has decided to allow a margin of 2$ per cent, for possible reductions by the Assessment Court, amounting to £309,573, leaving the valuation of £12,073,358, and is recommending the Council to strike the rate on this figure. The waterworks estimates are before the Council, and provide for considerable additional expenditure, which is entailed through the Council having to make refunds to certain consumers who originally paid for their own water connexions and for certain capital charges, and this will necessitate an increase in the water rate of 13s 2d in each £IOO of annual value, where the pro perties are connected to the water mains. If the estimates are adopted this evening, the rates can be made at the ordinary meeting of the Council on September 2nd, and be made payable on September 11th.- This would make the last day for payment without the addition of the 10 per cent, pemalty Mtfrch 25th, 1930.

r Chairman of Finance Committee. Cr. D. G. Sullivan said: "It will be seen from the clause in the Finance Committee's report, that the Finance Committee proposes to reduce the rate in the £ from 3 3-Bthß of a penny in the £ to 2 583 625ths of a penny in the £. This amount is estimated to produce the sum of £147,536, which is £22,136 in excess of the amount colle ted in the previous financial year; In connexion with the increased amount which it has been found necessary, to levy, it must be remembered that this year we have to find out of the ordinary revenues the amount of £12,500 for unemployment purposes, as against only £6290 provided from the same source last year. "It has further to be remembered that last year we had available to assist the ordinary revenues, an amount Of £7500 froi" natrnl my nllnr*otinn—which is not available this year, for the reason that this year we have to utilise the petrol tax allocation for the purpose of paying the interest and sinking fund on the £220,000 highways loan, in accordance with the promise made to the public at the time the roading loan was approved by the ratepayers. The general revenues last year were further assisted by the transfer of the sum of £3300 from the in the quarries account. "The position, therefore, is this; that last year we had available from the petrol tax and the quarries account to assist the general revenues the sum of £10,300, which is not available this year. In addition we have to find £12,500 for unemployment, instead of the £6290 last year, making a difference in these three items of £16,510 out of the £22,000 9xcess. There are other matters to be considered in accounting for the excess of expenditure this year compared witlf last, and these are set out in the clause in the report. The City has been revalued, costing us £2OOO. The expense of preparing the district electors' rill and conducting the election of Mayor and Council ors last May, cost £3420. There was £SOO for the West Coast Earthquake Relief Fund, £SOO law costs in connexion with the Cathedra) square injunction; £1225, the Council 's share of the reconstruction of Page's road; £IOOO for the Council's share of the New Brighton bridge, and a number of other items, some being non-recurring and some recurring in alternate years, totalling altogether £36,000 —all items that were not on last year's estimates. "In view of this heavy, unavoidable expenditure, it was found impossible to keep down the amount to be collected from the public by way of total rates to the same amount as was collected last year. "Our principal problem has been that of providing for unemployment relief and this is a very heavy though absolutely necessary under the prevailing circumstances, as we cannot alluw our unemployed citizens to starve. The total amount voted by the Council —and unanimously—was £25,000. It would be too much to p'ace the whole of that amount on the rates in a single year, and as explained, it has been decided with the concurrence of the Electricity Committee, to borrow half of the £25,000 from the electricity accounts and pay interest on the amount, the balance being found from revenue. Had it not been necessary to find £12,500 from revenue for unemployment purposes, the increase on the total to be collected from ' the public would have been small.

"The utmost efforts have been made by the Committee to keep the rate as low as possible, and with that end in view the estimates have been most carefully examined. It is possible, how ever, to carry a cheeseparing policy too far, and to the detriment of our fair and developing City. It is our duty while safeguarding the interests of the ratepayers in the matter of the amount of the rate levied, not to starve the City itself by denying it a proper expenditure. The Committee has tried to the best of its ability to reconcile justice to our City with justice to the ratepayers." He moved the adoption of the supplementary report. In reply to Cr. A. L Fraer, Cr. D. G. Sullivan said any vote for a crematorium would come under the Cemeteries Account. The Council discussed the question of officers' salaries in committee. Cr. Sullivan said his motion included the adoption of the estimates and the fixing of the rate. Cr. P. W. Sharpe seconded the motion.

Pledged Against Increase. Cr J A Flesher said in framing the estimates 'the chairman of the committee ha * rione hl3 Ie kee P down the expenditure, Dm unrortunately the latter included for this year an e-rnendit.ure —o f £'63o. fl'e Councillors on his siae or tne table were pledged not to increase the aggregate amount of the rate this year, but in respect of the amount stated he could vote for it without breaking his pledge, However, there were other items amounting to £26,218 and it was proposed to borrow £-12,500 from the Electricity Department and to increase the water rate by 50 per cent. Their Labour friends had given an undertaking not to increase the rates at the election, after making numerous promises. What had they done! They had had extra money from the petrol tax, which had been wrongly spent in a general fashion. Most of money expended on unemployment rr :cf was used in General Works Department undertakings. Cr. Flesher quoted from printed Labour propaganda circulated before the election. Yet, he said, there was an increase of nearly 20 per cent, in the rate. From the point of view of increasing employment, there was no doubt the Council had carried out its promises. It had had as many as 609 men in its employment. It was remarkable how the Council had had to draw in its horns in the second year of office. Expenditure had gone up by leaps and bounds. Cr. Flesher asked whether Councillors were satisfied that they had received 20s worth of work for every £ spent on unemployment relief. He would be very surprised if a special rate was not levied next year for the big roading loan. C.r. Flesher moved an amendment that the estimates be reduced by £14,436, and that the general rate be reduced accordingly. They would ask how this could be done, and his answer would be by cutting down the expenditure of the Works and Reserves Departments. He wished he could feel that the Council was getting efficiency out of the money expended. Labour Pledged Toot In seconding the motion, Cr. J. W. Beanland said that he wished to compliment the chairman of the Finance Committee on the way he had endeavoured to keep the estimates down. He had had to fight against various committees to do so. The Labour I Party had pledged itself, like the other side of the table, not to increase the rates

1 Cr. Sharpe: We did not. Cr. Beanland: Yes, you did. You can't get out of it like tnat. Proceeding, Cr. Beanland said that the Council had had moneys to spend that no other Council had had. The roads would have had to be repaired out of ordinary maintenance, yet the Council had had the assistance of unemployment relief funds, together with the Government subsidy to do the work. Cr. F. R. Cooke went into the history of the better roads movement in Christchnrch from the days of the late Mr T. E. Taylor, contending that ever since Mr Taylor's loan proposal the roads had been neglected. The present Labour Party Council _ had done its best to remedy the position and had certainly improved some of the roads. Regarding the criticism levelled the work on Bealey avenue a third-class road and had yet torlMre additional tar nut into it. It was to the maladministration and neglectV of the Citizens' Association Council that so much expenditure had to be incurred to-day. Why. they had overspent their estimates by £70,000They had also allowed _ petrol to be stored in such quantities that fires were occurring to-day. "Is this relevant to th® question P asked Cr Lyons. "It is a burning question," replied Cr. Sullivan.

"A ?rl*ileg#4 Claas." Cr. A. W. Beaven said he noticed £1354 was set down for car allowance, etc. This was in excess of anything allowed outside. Employees of the City (Qouncil were a privileged class. iThe am&unt paid in subsidy or superannuation was £flso, and t.hp employees' annual holiday cost £llOO The Electricity Committee this year was saddled with £BOO, as cost of the market. He felt like saying: "I told you so!" The profit of the market was set down at £248 for two years. He strongly protested against the belittling of the present Councillors' predecessors, but the old Councillors kept the roads out of maintenance, and now they were kept out of loans. Cr. Sullivan sai/3 the figures quoted by Or. Beaven were all wrong. The latter said the Labour Council railed against the capitalist, but they went to him far oftener than their predecessors. Cr. E R. McCombs stated that she had never heard such insincerity as she had that nifht from the other side of the table They had admitted that every attempt ha<f been made to keep expenditure down, but because they had pledged themselves to reduce the rates th a v had to move as they were But she was sure that the public would not be so ersily gulled. [The Departmental Committee, it seem'ed to her, had accepted all the profits >nu the market scheme and made the i Electricity Department bear the I losses. * 1 New Expenses. Cr. Sharpe said he would contradict Cr. Beanland. He had never mentioned rates during the election, and he had never heard a member of his Party talk about keeping down the rates. There was certain expenditure this year which would not be repeated. In the Reserves Department the Council had had to start at rock bottom, and purchase certain machinery which formerly was shared with the Domains Board. Then there were more parks than formerly. People did not realise that Christchurch had 8000 acres in parkS and reserves, or nearly half of the total in the City of London. There was scarcely a road fit for traffic in the suburbs, due to the Drainage Board's operations. Most of them had to be entirely reconstructed. The speaker said he would go a good deal further than the Council was proposing to go. Christchurch was trying to make bricks without straw in the matter of roads. His experience on the Council was that the Labour Party never did anything right, and this was the annual opportunity of the other side to belittle them. Cr. Sharpe said he was prepared to leave the issue to the electors.

"Chickens Coming Home to Roost.'* Cr. E. H. Andrews expressed the opinion that the chickens were coming home to roost with the Labour Party. Too many promises had been made by the Labour members, and in conse quence more money would have to be spent. When the roading loan proposals were being described to the public it was stated that by carrying the loan there would be a reduction in maintenance costs, vet to-day such-costs were increasing. He to other cities as often as most councillors, and he made it a point to visit the sidestreets, which he found to be worse than those of Christchurch. Unlike Cr. Rharpe, however, he was not ashamed of Christchurch. He was proud of it. Cr. Cooke said Mr Taylor's loan was £IOO,OOO not £BO,OOO. Pathos and Bathos. The Mayor said he wondered how much of this stuff the reporters were taking down. had not mue pathos in the speeches, hut a great deal of bathos. Cr. Andrews had referred to the poor, and Cr. Beaven a week or two ago had trotted out the baby's money-box. The Citizens * •Delation, candidates at the election aaa

made a stupid and impraetieable pro* mise not to increase rates. Councillors: So did you. The Mayor said he had never given such an undertaking. The other side were inconsistent in that some of them were going to vote for an increase. What Cr. Sullivan had said before the election was that he would not increase the poundage. Cr. Sullivan: That is correct. The Mayor said his idea was that the work required in the City should be estimated, and a rate levied accordingly. Cr. Flesh er's amendment was very " Flesherish." The Mayor said he remembered when Cr. Andrews was chairman of the Works Committee, and Cr. Flesher told him he must reduee the estimates of his department by £II,OOO, Cr. Andrews meekly did it. Cr, Andrews: Only by about half that, I didn't do it; there was a committee. The Mayor said that fortunately Cr. Flesher was not a ruing authority that night. The Christchurch roads were absolutely the worst in the four centres. In Wellington there were scores of miles of permanent roads. Why were Auckland and Wellington going ahead faster than Christchurch t Simply because they had raised their rates and spent them, while Christchurch was shuffling along on the same rate, which had been operating since 1921. It was the wretched policy of the Citizens' Association which was responsible for the stagnation of Christchurch.

Cr. Lyons said that if there was anything to wreck the Labour Council it was the fact that Cr. Cooke was in charge of the Works Committee. It was a mistal'e to increase the rates after the last two hard yearß. The Labour Party's pledges to the people during the election campaign were designed to hoodwink them, but there was a day of reckoning coming. Cr. Thacker «aid that the meeting reminded him more of a funeral dirge than anything else. One would think from what had bonn said that the bottom had fallen out of Christchurch. He agreed with Cr. Cooke that the roads of the City had been starved for years. He would vote against the amendment.

Cr. Sullivan expressed regret that Cr. Lyons had made the work of the South Islend members of Parliament more difficult by his pessimistic utterances. The Labour Party had made no promise to reduce rates. A Labour Council always kept the rates at the lowest possible level consistent with supplying the needs of the City. If Cr. Flesher stood by the letter of his undertaking, he could not support the raising of the additional £7635. He was certaini Crs. Flesher and Beanland were not sincere in their opposition. Other Bodies' Bates. The Waimakariri Biver Trust, of which Cr. Flesher was a member, had levied its new rate on the recent valuation and had made no reduction in the rate in the &. Could insincerity go further? Cr. Sullivan said the Drainage Board, of which Cr. Beanland was a member, had also increased its rates. Cr. Flesher said he had done his level best to adjust the matter of the Waimakariri River Trust. Cr. Thacker: It is the voice of Jacob, but the hand of Esau. Cr. Sullivan said that Crs. Flesher and Beanland were bankrupt of suggestions as to how the estimates eould be reduced still further. They had voted for the estimates, which had gone through unchallenged. The levy could not possibly be further redwsed. A vote for the amendment was a vote to take the bread and butter from the mouths of the wives and children of the unemployed. The amendment was defeated by 9 votes to 8, the voting being on Party lines, and Cr. Thacker voting with the majority. The motion was then carried by the same majortiy. In answer to Cr. Flesher, Cr. Sullivan said that the total rate to be levied by the City Council, including the general rate, would be about 7 l-#d in the £• I