ALL RATES UP ONE PER CENT.

Press, Volume LXXXIX, Issue 27073, 23 June 1953, Page 8

ALL RATES UP ONE PER CENT.

Estimate By Cr. McCombs

DISCUSSION ON FINANCES

“Taking the position over all the rates into account, the increase of the ratepayers’ bills will be approximately 1 per cent.,” said Cr. T. H. McCombs (chairman of the finance committee) when he presented the council’s estimates to the City Council and mentioned other rates collected by the council.

“Considering the times and costs, I think it is an admirable achievement that it has been possible .to keep the rates down during a year of special expenditure, not only for this but for other local bodies in the area.” The increase in city rates for the average property owner was equivalent to “half a packet of cigarettes a week,” said the Mayor (Mr R. M. Macfarlane, M.P.). The draft estimates made provision for all of the expenditure to which the council was already committed and also for maintenance and capital expenditure other than capital works out of loan moneys, said Cr. McCombs. As drafted, the estimates would have meant an increase in the general rate from 5d to a fraction under 6d,in the £ on the unimproved value.

“By deleting provision for those works which the committee felt could not reasonably be carried out in the next nine months it has been found possible to recommend a general rate of s|d in the £,” he said. The rate last year was maintained at 5d in the £ in spite of rising costs. This was made possible by utilising the surplus brought forward from the previous year, which amounted to £41,322, and which had accumulated largely on account of the shortage of both labour and materials in 1951-52. Every endeavour was made during the last financial year to carry out the works which in normal circumstances would have been completed earlier, so that the surplus carried forward on April 1 last amounted to £12,925 only. “The finance committee appreciates the efforts of all other committees in keeping expenditure as lbw as possible without endangering efficiency or excluding essential work. Special Problems “I would remind councillors that this year has its special problems with heavy expenditure for the purchase of additional land for the extension of Harewood airport and other non-re-curring items such as: (1) the municipal elections, £8250; (2) printing the district electors’ list, £5l(H>; (3) Coronation celebrations. £2000; and (4) £5OOO for the forthcoming visit of Her Majesty and the Duke of Edinburgh—so keenly looked forward to by all citizens. Sufficient provision has been made to ensure that Christchurch will welcome the Royal visitors in a fitting manner.”

The four items amounting to £20,350 would by themselves more than account for this year’s increase of id in the general rate, which would produce £16,792 on the present unimproved value of all rateable property in the city, said Cr. McCombs. The valuation itself was down by £7985, due largely to Government acquisition of property previously rateable. The rate necessary to meet interest, sinking fund and principal repayments on loans 171-250ths of Id in the £ on the unimproved value compared with 303-500ths d, representing a slight increase. There were slight increases also in the water rate, libraries rate, street lighting rate and fire board rate, and a substantial increase in the rate levied "by the North Canterbury Catchment Board for which the council was the collecting agency. These increases were about balanced, however, by reductions in the hospital rate, Riccarton Bush trust rate, and Museum Trust Board rate. Other rates which the council was called upon to collect were those levied by the Christchurch Transport Board and the Drainage Board. It had been found necessary to recommend an increase in the sanitation charge in the New Brighton district from £2 5s to £2 7s per pan. The charges in other districts were maintained at £2 12s per pan. The estimates committee recommended approval of the electricity committee’s estimates with a further recommendation that the balance in the appropriation account remain unallocated and that the questions relating to the proposed £200,000 electricity supply loan be further investigated. Steps to raise the loan were, however, being taken concurrently with these further investigations. “Cut to the Bone” The estimates were doubly optimistic, said Cr. W. P. Glue. Necessary works had been cut to the bone and receipts boosted. One item was that receipts from eating-house licences were estimated at £1745, while £245 was collected last year. Cr. McCombs: The reason for that is that we are putting up our charges, as Cr. Glue should know if he pays attention to the business. Transport licence fees were shown at £l6OO, against £1163, and motor drivers’ licences increased from £8873 to £9450, continued Cr. Glue. Sales of timber were estimated at £15,000, against £11,626, yet it was known there was no market at present for firewood Operators in Ashburton were cutting

the price by £1 a cord, and the Selwyn Plantation Board estimated that its receipts would Joe down 50 to 60 per cent. To boost the receipts, the council proposed to sell part of the Halswell quarry and Kerr’s Reach. The pot had been scraped to the bot“Is Cr. Glue arguing that we should have increased the rates and that we should not make any cuts to ease the burden on the ratepayers ” asked the Mayor. “I will admit that, perhaps as far as the .works department is concerned, more work could have been done, but last year we did more work and spent more money than for many years. Some works deemed necessary by the engineers have been cut. We are maintaining the rate of expenditure last year. If the city wants work done, it can only be done by substantial increases in the rates. Had the expenditure not been thrust upon us, the rates would have been increased slightly and the works department would have had the benefit of that.” No Air Race Finance

A vote of £lO,OOO for the international air race had been eliminated, said the Mayor. The finance committee held that the finance should be considered with the Air Race Council. The committee did not think it was justified in increasing the rates by £lO,OOO for the air race, the council of which was optimistic about raising the money. “The council will meet the Air Race Council and make another approach to the Government,” he said. “I make no apology for not increasing the rates by £lO,OOO by placing that item on the estimates. I think the chairmen of committees have made a very good job in not placing an increased burden on the ratepayers.”

Cr. McCombs said the increase in transport fees was due to the Transgort Board placing an additional 100 uses on the roads and to .increases in taxis. The council had to see that services were maintained, and, at the same time, study the ability of the public to pay. The figures showing that the expenditure was increased by £50,000 did not prove Cr. Glue’s argument that the estimates had been cut to the bone. He felt that too many works had been done out of revenue in the past instead of out of loans. The remodelling of Cathedral square was a typical work for doing out of loan money.

Grants Criticised Cr. L. G. Amos said the list and amounts of grants were ever increasing. The council was perhaps encouraging more leaning than it should. The Civic Music Council was obtaining £375 and “getting a double-banger from the M.E.D.” The council should decide where it stood with grants. Referring to car allowances, he advocated the use by officers of cars from a municipal garage, as in Auckland. Car allowances were costing a great deal of money. Cr. J. L. Hay said municipal corporations the world over were identifying themselves with cultural efforts, and the council would be failing if it withdrew its support. The Music Council had fulfilled a most important function, besides providing two pianos for the city. He approved of the estimates as being a r ‘very good job” by the committees.

For some unknown reason, the M.E.D. estimates were kept apart from the council’s estimates, said Cr. C. D. W. L. Sheppard. Would the chairman of the finance committee follow Auckland and allow the salary list to be published. The ratepayers should have the information.

Cr. McCombs said the list was made available for publication last year. It was given to the newspapers. Cr. G. Manning said the estimates of the M.E.D. were submitted to the finance committee. The electricity committee asked for £200.000 to balance the accounts.

In the future, the council would have to be careful in ascertaining whether finance was. available, said Cr. J. E. Tait. Materials and labour were now more plentiful, but finance was difficult. It would be difficult for the council to get through the year on the estimates. A gross expenditure of about £1,000.000 was covered by the rates resolution, Cr. McCombs explained. The resolution covered all the council’s activities. (Estimates Page 101 ""