PROPOSED CITY LOAN

Dominion, Volume 21, Issue 14, 11 October 1927, Page 10

PROPOSED CITY LOAN

P. J. O’REGAN SUGGESTS ALTERNATIVE

At a meeting of tho Berhampore Progressive Association last night, Mr. P. J. O'Regan put forward some arguments with regard to the proposed £300,000 City Council loan to bo submitted to ratepayers. Ho. stated that the supporters of the loan proposals, doubtless for purposes of propaganda, had defended them on the ground that they would have a remedial effect on housing and unemployment. While he did uot deny their relevancy, he maintained very strongly that unemployment was «o grave an evil that more palliatives ehould not be tolerated. No one sympathised with the men who were ■ unemployed more than he did. Unemployment was a grave national evil, a grave reflection on the Government of the day, but it was absurd to suggest that it could be remedied by appeals to public charity or by borrowing money for any purpose whatever. He maintained very strongly, even looking at the question from the point of view of the unemployed, that there was no reason why the works for which the City Council proposed to borrow money should not be proceeded with. The City Council was empowered by law to levy a general rate of 12d. in the pound on the capital value, or its equivalent on the unimproved value. The capital value of the rateable property of Wellington was £3-1,143,976, and the rate revenue last year was £40G,000. If the general rate were levied to the full extent authorised by law the annual rate revenue would be £521,000. The present rate on the unimproved value was 2.7 d. in the £l. Next year, assuming that the rates were levied on the present valuation, the aggregate rate on the unimproved value would be Old. in £l. If the general rate were increased by Id. in £l, the rate revenue would bo augmented by £62.500. and with that inciws.se the proposed works could be carried on without raising a loan, and at the same time the great majority of the ratepayers would be paying less than at present. It must lie borne in mind, he said, that, if the loan proposals were carried, a special rate would have to be levied as security for the payment of interest end sinking fund for the ultimate redemption of the loan. Tho speaker said he was quite convinced that the more his arguments fvero. considered the more they would commend themselvjs to the ratepayers, and as far as he was concerned the proposal of the City Council would not go by default.