LOANS AND RATES

Evening Post, Volume CVI, Issue 31, 6 August 1923, Page 8

LOANS AND RATES

CITY EMPOWERING BILL

OPPOSITION BY CHAMBER OF

COMMERCE.

The Council of the Wellington Chamber of Commerce to-day, after some discussion on the provisions of the Wellington City Rates Consolidation and Empowering Bill now before Parliament, passed the following resolution:—

"The Council of the Wellington Chamber of Commerce is of opinion that clause 5 would be satisfactory provided a limit is placed on. the amount raised in any one financial year, and suggests that £20,000 be not exceeded in any one year."

5 of the Bill provides that the Wellington City Council may by special order, and without taking the steps prescribed in sections 8 to 12 of the Local Bodies' Loans Act, 1913, raise special loans for any of. the following purposes :—(a) Tramways; (b) sanitary works as defined in section 22 of the Health Act, 1920.

In a letter to the Chamber of Commerce, the Welfare League said:—"We need hardly point out how dangerous it would be to permit the raising of special loans by mere order of the City Council. The present safeguard of public authority by the vote of the ratepayers will be gone, and we should be at the absolute mercy of any extravagant council which may hold office, which would be very serious if ever a Socialist majority controls city affairs."

In moving the resolution, Mr. W. F. Cuthbertson said that a deputation waited upon the Local Bills Committee of the House and pointed out that clause 5 was a dangerous provision, and would be apt to be abused. It was probable thai tho commercial community might be satisfied if certain safeguards were provided.

Mr. H. D. Bennett said he had already expressed his views in the newspapers. His complaint was that the whole Bill had not received that amount of attention from the council-that it ought to have received. He was satisfied that the City Council should have the rig-ht to arrange for raising limited sums for tramway purposes. It was only a question of the amount. Perhaps £20,000 might bo considered a reasonable amount. The main object of the Bill was to consolidate the rates. The general proposal emanated from the staff. The main reason given by them was that it would reduce th» amount of work in connection with the raising of rates. The position was this: that the consolidating of the.rates meant that the city itself was going to suffer. Personally, he thought it was a pity that there was no organisation to look after the interests of the city proper. There were various ratepayers' associations, all around the.city. With the possible exception of the -Wellington North Ratepayers' Association, they had not spokeu on this subject. Naturally these associations were all looking after the interests of the suburbs as providing the greatest spheres for extensions. The consolidation of the rates meant that the city had to carry £10,000 or £12,000 more in special rates. The most glaring case was that of Miramar—one of the city's most recent absorptions. Miramar^s special rates were about £5800, and these proposals meant that their rates would be relieved to the extent of £4800. It was time someone spoke up for the city men. In his opinion, it was time that theso matters were investigated, and personally ho thought the Bill ought to be amended.

Mr. A. Leigh Hunt moved that representations be made to the Local Bills Committee that the provision with regard to the consolidation of rates be deloted from the Bill this session, to give tho City Council an opportunity of enlightoning the ratepayers, and if necessary of bringing forward the proposal next session.

This resolution was adopted,