ANOTHER £59,000 FROM RATES

Press, Volume XCIX, Issue 29239, 24 June 1960, Page 14

ANOTHER £59,000 FROM RATES

Chairman Reviews

City Finances

“Additional rates must follow if progress is to be made,” Cr. H. P. Smith, chairman of the financial committee, told the City Council last evening when estimates were approved and the rates fixed.

“Christchurch is a fast-growing city, commercially and residentially, and I am prepared to put the proposition quite seriously that the public would expect us to build into our planning such progress as appears necessary,” he said, announcing that although the ratepayers were asked to pay £59,000 more this year than last year, there would be available to spend on assets for the good of the city another £119,000.

Irrespective of whether the council’s total levy was increased or remained the same, some ratepayers would have increases or reductions, according to whether their individual increase in unimproved value was greater or less than the average of about one-third, said Cr. Smith. He gave as examples two city stores, one of which had a 55 per cent increase in valuation and the other 4J5 per cent The former’s rates went from £1024 to £1207 but on last year's valuation the consolidated city rate would have been £lOBO, so that £127 was caused entirely by the alteration in values and £56 by the rate increase. The other store's rates went from £5651 to £4759. but on last year’s valuation for this year’s levy would have gone to £6032. Of the change in the granting of Roads Board subsidies, Cr. Smith said Christchurch was in a favourable position as having the largest population of any city so that formerly it had received a subsidy of £164,000 on a population basis. This year, it would get a subsidy of 3/7th of what it spent on approved works. To warrant a subsidy equal to last year, the council would have had to raise an additional £40,000: but it was felt desirable to obtain almost the full benefit of the £186.000 available. To do that would have required the raising of an additional £66.000. The estimates provided for an increase of £62.000 Wage Increase Cr. Smith said the general wage increase of last year would cost the council £36.000 in a full year. To cushion the effect of the increase, it had been agreed that there should be a transfer of £45.000 from the M E D., he continued. “This calls for no apology in view of the fact that the city pays some £42,000 a year to the M.E.D for street lighting and this includes a write-up on cost,” he said. “Moreover, the city ratepayers have provided the asset which provides the return.”

Cr. Smith said that last year the ratepayers found a total of £996,630, including the water rate. This year the comparable figure was £1,055,892. The gross amount required was £1.485,421, which would be met by £895.729 from the consolidated rates; £160,162 from water rate: £181,647 in subsidies— £202,882 in ordinary revenue, and £45,000 from the M.E.D M.E.D. Profits

He was quite happy that the M.E.D. should use its profits for any worthy cause it might like to choose, but he did not think the profit should be used for the relief of the general rates, said Cr. G. D. Griffiths. Such transfers from electrical undertakings had been made in other centres, and they had been used as an argument for power boards to take over the control of electricity supply to cities, he said.

“I regret that we had to take so much from the M.E.D.,” said the Mayor (Mr G. Manning) I am not against taking something, because the whole of the ratepayers of the city have to guarantee the loans for the M.E.D.. which has borrowed at the rate of £2OOO a year. What I don't like is that we should take so much from an institution which will be on the loan market again this year. I thought £15.000 might have been more reasonable.”

“The trading profit of £lO,OOO transferred is something we would

not regret transferring to the central fund, as the trading was done in the central city,” said Cr.- W S. Mac Gibbon, chairman of the electricity committee “If I am still chairman, 1 would not desire to see a further transfer in the future,” he said. "This year, under the special circumstances, the committee yielded on this matter, but I would not like it to be a precedent.” Cr. Mac Gibbon said he had opposed any suggestion that the street lighting charge should not be levied, as that would have been unfair to M.E.D. consumers in Waimairi and Halswell. Town Hall Fund

Referring to the £lO,OOO provided on the estimates for the town hall fund. Cr. H. G. Hay said it was pleasing that the council had now contributed about £lOO,OOO to the fund. He suggested that for the year ahead thought should be given to providing a substantial appropriation to the fund from the M£.D, as he said had been done in other centres.