The Press MONDAY, APRIL 15, 1935. "To Lighten the Load on the People"

Press, Volume LXXI, Issue 21449, 15 April 1935, Page 10

The Press MONDAY, APRIL 15, 1935. "To Lighten the Load on the People"

In a speech in the Trades Hall last week the Mayor, Mr D. G. Sullivan, defended the action of the present City Council in transferring funds from the Municipal Electricity Department and the Halswell quarries account to the general account on the ground that the purpose of such action was " to lighten the load on " the people." The argument is as bad as the method of accounting which it is used to justify. The City Council, as the owner of the Halswell quarries, sells roadmaking materials to itself as a reading authority. If there is a substantial real profit on this undertaking, and Mr Sullivan seems to think there is, then the assumption must be that the Halswell quarries co.uld supply material more cheaply than at present and that therefore Peter is being robbed to pay Paul. If, however, the profit on roadmaking material is due to inadequate provision in the Halswell quarry account for such items as depreciation and replacements, then an unjust burden is being thrust upon some future generation of ratepayers. One or other of these propositions must be true; and either of them makes nonsense of the pretence that transfers from the Halswell quarry account arc for the benefit of " the people." In the case of the transfer from the Municipal Electricity Department Mr Sullivan's defence is even thinner. According to the latest issue of the " Christchurch City Council " Year Book" there arc in Christchurch 31,781 consumers of electricity and 25,755 rateable properties. The profits made at the expense of the 31,781 consumers of electricity are being used to lighten the burden of the 25,755 ratepayers because, apparently, the ratepayers are " the people " and the consumers of electricity are not, Mr Sullivan would be wiser to admit frankly that the present City Council has raided electricity profits from mptives which are no better than those of governments which raid road funds. A low general rate, in other words, is useful for window dressing. The use of electricity profits to lighten rates is particularly objectionable at a time when a national effort is needed to increase the consumption of electricity. The available supply, in the South Island at any rate, is vastly greater than the present demand; and demand will never be fully developed as long as supply authorities use electricity profits to pay for other services. Indeed, the Government might be wise to amend the Municipal Corporations Act so as to prevent absolutely the raid of municipal electricity accounts. We do not, of course, imply that transfers of the kind discussed here are peculiar to Labour administrations. Unfortunately they have become j prevalent over the whole field of public finance. But we do beg Mr Sullivan not to aggravate the offence by pretending that these transfers benefit " the people" and that the Labour party has an exclusive right to speak on behalf of. " the people."