Retrenchment Move By Greymouth Council

Press, Volume CII, Issue 30213, 19 August 1963, Page 13

Retrenchment Move By Greymouth Council

In an urgent endeavour to reduce its expenditure, the Greymouth Borough Council has given notice of termination of employment to five of its employees. In a statement of explanation of the position, the Mayor of Greymouth (Mr F. W. Baillie) said yesterday:—

'During the recent series of meetings of councillors which have been held to discuss borough affairs, it has become m st obvious that the sus-

tained losses of the gas department could not be allowed to continue without seriously jeopardising the financial stability of the council Over a period of 15 years the accumulated deficiency has exceeded £50,000. and the time has arrived when drastic measures are needed.

"The only sources from which these annual losses can be met are either from the ordinary revenue and rates, or by an increase m the amount of the overdraft in the District Fund account. “The rate increase this year has been sufficient only to meet the increases in loan repayment and interest charges, plus the higher costs common to all local bodies.”

continued the Mayor "It made no provision ter a reduction in the council's indebtedness to its bank, from whom a firm request has since been received that action be taken for this purpose

"Even though the progress of the proposed work for the year had to be substantially cut to keep the total within the prescribed limits, it was not practical to curtail works too much without incurring a backlog of c stly maintenance which could not be postponed indefinitely. “As no further major work is to be done on gas mains this year, th.s department is to be incorporated into the water reticula'ion and service

section which is very similar in many respects.

“By this means it is hoped to reduce costs by eliminating duplication of staff, plant, and equipment. “With the increased demand tor gas. revenue from this source is starting to show encouraging improvement, but until financial stability is achieved it will be necessary for the council to maintain the closest scrutiny on all items of proposed expenditure,” concluded Mr Bacllie.