CITY LOANS

Press, Volume LXX, Issue 21290, 9 October 1934, Page 10

CITY LOANS

DECISION TO CONVERT COMPLETE CONSOLIDATION APPROVED INVESTIGATION OF ALTERNATIVE SCHEME ADVOCATED The Christen urch City Council last evening adopted the formal resolution for the conversion with complete consolidation of city loans. There was a long debate on the proposal, several councillors speaking in favour of an alternative scheme for conversion into 12 special areas. "It seems to me after further thought that we must adopt our original plan of one conversion scheme with complete consolidation or accept no scheme at all," said Cr. J. K. Archer, in moving the resolution

Cr. J. S. Barnett seconded the resolution.

Opposition to the proposal was advanced by Cr. E. H. Andrews. He said that conversion into 12 loans would have lessened the injustice to several wards which would result from conversion with complete consolidation. Since the last meeting a scheme for consolidation into 12 areas had been investigated closely. Under it the central area would pay £ 1 19s 6d instead of £2 15s over the 20-year period: the Woolston area £ 10 instead of £ IC, and Sydenham, at the end of 20 years, actually would have a surplus. The scheme had been referred to the Treasury but there had been no time to refer it to the Local Government Loans Board. The Treasury claimed that while there was something to be said for a partial consolidation generally it was true that complete consolidation was the most desirable system. Cr. Andrews moved that a postponement of the final decision be made until further investigation of the scheme for 12 areas had been made.

His motion was seconded by Cr. T. Milliken, who'said complete consolidation meant that older portions of the city were being asked to bear the burdens of the newer portions. The Canterbury Chamber of Commerce, which had advanced an alternative to complete consolidation, would agree to the scheme advanced by Cr. E. H. Andrews for 12 areas as a compromise. No practical objections to the scheme had been advanced either by the City Treasurer or the Treasury Department.

Report from Officials In reply to an instruction by the Mayor the officers of the City Council presented a report. It favoured complete consolidation. The Mayor, Mr D. G. Sullivan, M.P., said that the Local Government Loans Board and the Treasury had extended special dispensations to Christchurch and if Christchurch did not accept complete consolidation the £17,000 saving would not be obtained. The council would not secure a 20-year period for conversion without complete consolidation. That was made very clear by Treasury officials. Cr. M. E. Lyons, who was unavoidably absent from the previous meeting of the council when conversion was discussed, said that complete consolidation was retrogressive and would check, if not halt, municipal progress. He considered the Government should have been asked to pass an empowering act to provide for the special circumstances in Christchurch and ne thought the Government would have been glad to grant the request. Cr. Lyons added that the proposed scheme was a distinct barrier to progress, even although the city would still be able to advance from its general account to special districts; it meant that one section of the community would be asked to accept liabilities incurred by another section after decision by ballot.

The chairman of the works committee. Cr. J. S. Barnett, said that after complete consolidation the outlook of administrators would be one more embracing the citv as a whole than at present. Consolidation should also be a great incentive to the formation of a greater Christchurch by the inclusion in it of areas now outside it.

The Mayor: Even with complete consolidation if a particular district desires to raise a loan the decision to raise that loan does not need to be approved by the whole city. The progress of the citv districts cannot be impeded therefore.

Alternative Supported Cr. A. E. Armstrong said he thought that Cr. E. H. Andrews had advanced a very good alternative scheme. The only result he could sec* from complete consolidation was that the council would be able to raise large loans with more ease than at present. Conversion was merely to take advantage of the low rate of interest—4 to 4{ per cent.— but he believed interest rates would fall still further within the next five or six years. Cr. E. H. Andrews said that if it was true that a 20-year period was impossible then the council was being coerced by Treasury officials. The Christchurch Tramway Board had secured a 27-year term. Cr. Archer, in reply, said that the position of the Tramway Board was not comparable. Consolidation secured a reduction of £17,000 whatever action the Government might take at the end of two years. The council could never raise large loans without taking a vote of ratepayers. Surely that was a safeguard. He said the scheme for 12 areas advanced as an alternative would have the fault of transferring burdens from one section to another just as any scheme for consolidation must. The whole opposition to consolidation was bred of parochialism. There had never been any objection to the consolidation except from the central area and in that area only from the Canterbury Chamber of Com-, merce. No individual or group of individuals in Sydenham, St. Albans or Linwood had objected. Several councillors: They do not understand the scheme. Cr. Archer said that the alternative offered had all the disadvantages of complete consolidation and few of its advantages. The amendment was lost by 8 votes to 7, and the resolution was adopted on the voices. Those voting for the amendment were Crs. A. E. Armstrong, F. T. Evans, M. E. Lyons, T. Milliken. T. Andrews, W. Hayward, and E. H. Andrews.