CITY ECONOMIES

Dominion, Volume 24, Issue 180, 28 April 1931, Page 11

CITY ECONOMIES

Mr. Appleton’s Analysis RATES MUST BE CUT Accountancy Flaws Favouring a reduction in rates and economy in the administration of the City Council, Mr. Will Appleton, a candidate for a seat on the council, last evening outlined his analysis of the accounts of the city when addressing electors in the Khandallah Town Hall and at Wadestown. He believed that the profits of trading departments, after all proper provision had been made, should be used to reduce the charges to consumers, and not used for other purposes, and opposed further capital expenditure at the present time unless with the specific sanction of ratepayers. Mr. Appleton said the figures for the last financial year, were not available, but as the details for the two periods were approximately the same, he based his deductions on the year ended March 31, 1930. The main items of income in the half-million which the council handled, and which came out of the ratepayers’ pockets, were general rates £204,000, the consolidated or interest rate £115,000, water rate £lOO,OOO, hospital rate £58,000, library rate £7500. Then there were rents £60,000, licenses £14,000, petrol fees £12,000. He found that the water rate, in addition to standing £19,000 for salaries, a totally disproportionate levy considering the services the general staff renders to the water department, had supplied a credit of £17.000 transferred to the general account Mr. Appleton stated that from an accountancy point of view this was wrong in principle, and was similar to another practice of past councils in utilising electric light funds for other activities. If. the sum levied for water could be reduced this should be done, and the ratepayers relieved accordingly. Ten Per Cent. Reduction in Rates. Mr. Appleton said he was satisfied that the general rate in any case could be reduced by 10 per cent. He was aware that extra interest payments would accrue this coming year, but against this there would be a saving of at least £5OOO in the hospital board levy, and savings eould be effected, in other directions which would more than offset the increase in interest charges. •“It is not a question of can the rates be reduced, but that they must,” .said the 'speaker. “In business circles the fiat had gone out that all expenses had to be curtailed in line with the drop in turnover, and identically the same principles should apply in the city administration? Mr. Appleton said he felt that if the council’s officers were told that there was £20,000 or £30,000 less to spend this, coming year, they would soon find ways and means of effecting the necessary economies. The bulk of the council’s workers were paid under Arbitration Court awards, and it was evident that tbe wages of these people would be automatically reduced in any case. As for the others — well, all he could say was that as an ordinary prudent business man he would, if given the opportunity, be forced to effect economies just the same as he would in his own business, in which, by the way, he had made a salary cut of 10 per cent, from March 1, as well as having to make other adjustments. He realised he would be unpopular'in certain quarters by frankly stating his. attitude, but he was not a politician. Salaries of the council had increased by 40 per cent, during.the past five years. In every business concern there had crept in a lot of “dead wood” during the soft period following the war, and he could hardly believe that the Wellington City Council had eseaped this tendency. - - U -. • ...-■ ..... a . ■ Street-widening Extravagances: Wellington had been far too extravagant in her street-widening proposals, said Mr. Appleton. To date the city had spent over £700,000 in street-widening. Land had/been resold to the value of £121,000. The annual interest was £27,000, and the sinking fund £5OOO, a totaL of £32,000. Rents amounted to £16,278. Assuming loss of rates on the land to be only £4OOO per annum, the cost of our street-widening was not less than £20,000 per annum. . Good work had been done, but 'there had been waste. The proposal to widen Hunter Street_at a cos. estimated at not less than £50,000, represented a shocking waste of ratepayers money. At present there is a line of motor-cars parked all day long on both sides of the street, and the space occupied is greater than the area to be resumed. Why spend more money to accommodate more cars? <•. : ALL SHOULD SHARE Reductions in Wages MR. LUCKIE’S OPINION If the Arbitration Court makes an award which has the effect of reducing the wages of City Council employees working under an award, then it was only fair and reasonable that the inside staff of the City Council should suffer reductions. What those reductions should be, Mr. M. F. Luckie, Mayoral . candidate, speaking at Lyall Bay last night, was not prepared to say. The council had 2500 employees, said Councillor Luckie, some of whom were working under an award. Some of the special works had been completed,, and a proportion of the employees had had to go out. The staffs were now down to normal. In May the Arbitration Court was to consider an application for a reduction in wages. If there was a material reduction in the workers’ wages, then the inside staff and those not subject to awards would have to be reduced. It would not be right and proper that one part of the council’s staff should suffer a reduction unless the other part took a fair and reasonable share. “I don’t want to see wages reduced, but there is every probability that they will be reduced by the Arbitration Court. If so, it must be shared by the inside staff. Whether it will be on the same scale as the Government reductions I can’t say, but I don’t altogether agree with that. We must make it as light as we can for the people least able to bear the burden.” Mr. Luckie deplored the fact that with the Government and mercantile firms reducing staffs it was likely there would be an increasing number, of unemplM’ed unable to handle' a pick and shove!; There would be more unem ployed women and girls, and this was a matter that called for serious consideration. TO-NIGHT’S MEETINGS The Civic League mayoral candidate. Mr. T C A. Hislop, in conjunction with several City Council and Hospital Board candidates. will be speaking at the old council chambers, Karon, to-night. . Mr. Martin Luckie. independent candidate for the mayoralty, will speak at bt. Thomas’s Hall. Newtown, to-night, at. b ° The k Welliiigton Ratepayers’ Association's niuniclpal and Hospital Board candidates will speak to-night at the school. Mprii-tn'-toii. tea-rooms. Happy Valley, and lullford’s“ Hall. Brooklyn. The speakers are Messrs T. C. A. Hislop. R. W. Botham ey. H Price J. D. Sievwright. P. L. Hoskins. A A Whitelaw, E. Bold. J. McDonald. W. Duncan, and Mrs. C. Henderson, Candidates contesting the local body elections In Labour interests will address meetings to-night as follows:—Aro Street (soldiers’ monument). Messrs. W. Atkin son M Walsh. L. Hennessy, and Mrs. M. J Bentley and Mrs. R. Mitchell: Todman Street. Brooklyn. Messrs. C. H. Chapman. M P. T. Brindle. P. 51. ButleY. W. 11. Sadd. .1. Glover, and Mrs. ,T. Fraser; Island Bay (tram terminus). Messrs. R. McKeen. M.P.. ,T. Read. A. Parlane, E, A. Dahl, and W. B. ConnelL