LOAN PROPOSALS.

Evening Post, Volume CIV, Issue 122, 19 November 1927, Page 7

LOAN PROPOSALS.

KEASCXNS AGAINST.

The Vigilance Committee earnestly implores all ratepayers on Tuesday next to vote solidly against the Paving and Sealing Loan Proposals for the following reasons:— (1) On the lath September last a lawful majority of Eatepayers defeated the loan, and the Council should have accepted the defeat. (2) (a) The rates have during the last.five years increased by £113,970. (b) The Hospital and Charitable Aid levies have been responsible for only £16,384 of the above increase. (c) The net increased rates, after allowing for the Hospital, etc., levies, have been £97,586. (3) The City fends have not been valued for about six years, but a revaluation is now being made, and it is' expected that there will be an increase of from 25 per cent, to 50 per ceiit., which, according to the Council's policy, will mean an increase of the amount to be paid by each ratepayer as general rates, corresponding to the ■ increased land value. (4) No Loan Poll should be taken until the new valuation and increased rates are known. (5) The Council has decided to borrow £150,000 more for .amway purposses and a further £150,000 for streetwidening purposes, but is keeping them back until the fate of this loan IS /T^m"' <Pa Pers iv our possession.) (o) The Council is row borrowing without reference to the ratepayers £-0,000, which it was short for the completion of the works scheduled for a previous loan. (Advertisement.) / (7) The Council may and probably will borrow without reference to the ratepayers a further £.60,000 shortage on this loan and the two referred to above. (8) Over half a million of money preVSfil authorised by the ratepayers (£.318,516 over seven years ago) has not yet been raised, nor were any of the works commenced on the 17th of last month. The Council is still considering the question. (Letter from Town Clerk.) (9) If the half a million referred to above ia raised, as it can be without any further reference to the ratepayers then you will suffer a further large increase of rates. (10) The Council should not be given further authority to borrow a penny until it either spends or renounces this half a million authorisation. (11) Since 31st March, 1920, the ratepayers have authorised loans to the c tent of £2,516,816, and. if the present loan and the others which the. Council has approved are carried it would make a total of £3,037,601, a rate of borrowing that no city in New Zealand could possibly justify or maintain. (12) The present gross debt of the City is £4,745,543, and if these other loans are carried it will reach the stupendous sum of £7,783,144. (13) It has been contended by the Council that Auckland's debt is greater than Wellington's, but the fact that one city embarks on an unwise borrowing policy is no argument why Wellington should follow it. The fact is that tho ratepayers of Auckland have just recently turned down a loan of £500,000, and are asking for a public inquiry into Auckland city affairs. (14) Owing to the lack of efficient supervision and control of expenditure, it is doubtful whether the City gets 50 per cent, of value for, the money spent. (15) Tar-sealing is proving an utter failure. Works done only a few months ago are already cracking up, and need doing again. (16) (a) The principal argument adduced by the Council for the loan is the alleged saving of cost of maintenance and street scavenging and watering, but despite the large sum spent on paving and tar-sealing, the cost of street scavenging and watering in 1926-27 (last year) was £663 more than ia 1923----24. (City Balance-sheets.) (b) And the cost of street maintenance works rose from £55,954 in 1922----23 to £77,958 in 1926-27. (City Bal-ance-sheets.) (17) The City's portion of the Petrol Tax, when it comes, is earmarked by the Act for the maintenance, construction, repairs, interest, and sinking funds on Main Highway Continuation roads, and it is only after all these have been done that the balance, if any, can be spent on this or any other loan works. (Motor Spirits Taxation Act, 1927.) (18) It is probable that the Heavy Traffic fees will be either abolished or considerably reduced, in which case there will be little or no revenue from that source. (19) The whole country is suffering under a colossal burden of taxation, due to overhead expenses on reckless expenditure, and our City Council occupies a foremost place in this extravagance. (20) We, a body of watchful ratepayers, who have delved very deeply into the position, hereby lay bare the true position to ratepayers. We warn them of the rocks ahead, and show how. to steer clear. The Tesult is now in your hands. We can do no more. [Published by arrangement.]