Rebuilding “no charge on rates”

Press, Volume CXII, Issue 32880, 1 April 1972, Page 18

Rebuilding “no charge on rates”

Only part of the insurance reserve fund would be used to finance the rebuilding of the Centennial Pool, and the rebuilding would not be a charge on the rates, said the chairman of the Christchurch City Council finance committee (Cr D. R. Dowell) yesterday. He was replying to a correspondent. “Fiasco,” who wrote: “So the insurance reserves shown in accounts TOTS of the balance-sheet for the year ended March 31, 1971, are to be used to finance the corollaries of the Queen Elizabeth II Park sporting extravaganza. “The terms offered by the insurance company, as a substitute for self-insurance, are meaningful only if offered on the basis of the current and

future years, or the agreement entered into is a continuing one not left to the whim of the insurance company to increase when the two-year dissipation of the council’s insurance reserves leaves the city in a financial position from which it cannot usefully negotiate,” said “Fiasco.” “Because council oppo-

sit-ion members did not question the proposal ‘in committee,’ is Cr Dowell claiming that silence is consent? Legally, so far as I am aware, silence is not consent. No doubt, when the rates go up this year, the blame will fall on alt but Labour’s blunders,” said “Fiasco.” Cr Dowell said: “The Christchurch City Council is

the last of the city councils in New Zealand to place its pubiic-liabilitv and motoraccident insurance cover with the Municipal Insurance Company, a company in which it is a shareholder. I suggest it is sound business to support your own company.

“As to the other misconception, that ail the insurance reserve fund that now becomes available will be used to finance the rebuilding of the Centennial Pool, destroyed at great haste by the previous Citizens* Council before the last election, the answer is that only part of this reserve will be used for that purpose.” “DUTY TO QUESTION” “The suggestion that the Citizens* councillors did not question the proposal in committee is no testimonial to the Citizens’ councillors because it is their duty, and, indeed of all councillors, to question,” said Cr Dowell. “However, on this particular occasion. I am happy to report that Cr H. G, Hay, the leader of the Citizens’ councillors. did speak, and found no fault with the proposal. Cr Hay also asked about the reserve fund, but was more than happy when I advised in answer to his question that, so long as I was chairman of finance, these reserves would be used for capital works only. “With regard to the statement. ‘when the rates go up this year,’ let it be clearly understood bv all. that notwithstanding the unfortunate need of this present council to repair the unnecessarily hastv destruction of the Centennial Pool by the previous administration, it will not be a charge on the rates,” said Cr Dowell.