CITY COUNCIL FINANCES

Press, Volume LXXV, Issue 22831, 3 October 1939, Page 7

CITY COUNCIL FINANCES

PROVISION MADE FOR READJUSTMENT WAR CONDITIONS 'CAUSE SURVEY OF RESOURCES The various committees of the Christchurch City Council have been asked to go through their estimates for the current financial year and prepare lists of works which could be postponed, if necessary, until after March 31 next. This follows an investigation called for by the council of its financial position, in the light of new conditions imposed by the war. The City Treasurer, Mr J. W. Niven, reporting on the new situation to the council’s finance committee, stated: “In view of the possible repercussions which the war may have on the collection of rates and on other receipts, I would recommend that the heads of departments concerned should be instructed to prepare a list of works which could be postponed if necessary and that these items, after the question had been considered, by the respective committees, should be deferred until such times as the council of the finance committee deems it expedient that they should be proceeded with. It is to be expected that the prices of some materials will rise, and with the additional wages bill which will be the result of the proposals to make up the wages of employees bn military service and a probable reduction in such items as petrol tax, the .financial position will have to be closely watcheq until the end of the financial year. “I am expecting that after the interest on the conversion loan is paid on September 30 and the electricity department’s power account is paid about the middle of October that there will be a fairly considerable overdraft on the council’s district fund account, at the bank, and. as has .been previously mentioned, temporary loans are apparently difficult to obtain. “In these circumstances, I -would recommend as an emergency measure that the council should ask for authority under. Section 46 of the Local Bodies Loans Act, 1926. to transfer if necessary the. balances. of - loans accounts not immediately required to the district fund account, such advances to be refunded as required but not later than March 31 next.” The council received the treasurers report at its meeting last evening and, on the recommendation of the finance committee, approved of the suggestion for the transfer, if necessary, of the balances in the loans accounts not immediately required. Such advances (it was decided) would be refunded as required, but not later than March 31, 1940.