‘State Aid Not Enough’

Press, Volume CVI, Issue 31091, 21 June 1966, Page 1

‘State Aid Not Enough’

The greatest single problem for local bodies continued to be that of trying to keep rates from rising too much and at the same time trying to provide the amenities that growing cities required, said Cr. H. P. Smith, chairman of the finance committee, when he introduced the estimates last evening.

So long as costs of local government continued to rise —and the major cost of local government was in salaries and wages—so must rates rise unless some other source of revenue was available to local bodies, Cr. Smith said. “it is not mv purpose to svesest what other sources of revenue should be made avail-

able, but while the decision to pay rates on some Government properties was welcomed, it did not go far enough to off-set the everincreasing costs," he said. The great proportion of expenditure by a city council was tn wages and salaries. He did not suggest that the council was paying too much, Cr. Smith continued, but if the wages bill increased by nearly £lm In 10 years, then rates must be increased to meet it Throughout the country local bodies had found it necessary to increase rates this year, Cr. Smith said. “Without undue pride, one may mention that our increase is less than those in other major cities." Comparing the rates payable in the other cities, Cr. Smith said it should be remembered that Dunedin and Wellington carried out functions performed In Christchurch by ad hoc bodies.

On local figures, he said that the Muncipal Electricity De-

partment had been unable to help the ratepayers this year. It was a tribute to the helpfulness of the chairmen of the committees that the council could levy an increase of only 7.1 per cent. The general rate had been increased by 9.09 per cent, Cr. Smith said. The special rates were down by 5.13 per cent, the library rate up by 2.95 per cent, the museum rate up by 9.26 per cent and the Riccarton Bush rate up by. 12.88 per cent. But the figures for each £lOOO of unimproved value were £1 5s for the general rate, 2s down for the special rate, 7.2 d for the library, 6d for the museum and Id for the Riccarton bush. Cr. Smith said the total rates levied by the council were £1,260,644. This was made up by £1,037.311 in the general rate, £127,935 for special rates, £72,266 for the library rate, £20.400 for the museum and £2732 for the Riccarton bush.