CITY IMPROVEMENTS

Evening Post, Volume CXI, Issue 77, 1 April 1931, Page 12

CITY IMPROVEMENTS

OUTLAY JUSTIFIED

HANDSOME REVENUES

MAYOR'S STATEMENT

A justification of past expenditure on certain important works for city improvement was a prominent feature of the address of the Mayor (Mr. G. A. Troup) at the annual dinner, of the Wellington Chamber of Commerce last evening. The Mayor said the president of the Chamber had referred to the increasing indebtedness of local bodies in New Zealand. Such statements, which were often made, required some qualifying explanation. A very large proportion of that increased indebtedness was entirely due to the fact that local bodies had undertaken a new obligation in recent years—the supply of electricity. The indebtedness from that source alone amounted to approximately £15,----000,000. That expenditure had been. one of the most profitable of. outlays. The power boards as a rule were in a very good position. The city power supply had been a most profitable undertaking. Speaking generally as to local bodies, such expenditure accounted for fifteen millions out of some fifty; millions. JUST CRITICISM WELCOMED. There was another point he would like to touch upon. There had lately been some criticism of the Wellington City Council. He welcomed- just criticism and constructive criticism. The speaker defended the council against the charge which had been made against it that it had acted unconstitutionally in authorising expenditure on certain works without the consent of the ratepayers being first obtained. With regard to the statement that the City Council during the past four or six years had enormously increased the indebtedness of the city, Mr. Tronp pointed out that the offset against tha expenditure must be taken into account. Wellington to-day was in £ slightly better position in respect ta individual indebtedness than it was four or six years ago. Although large sums had been raised by way of loan, there were substantial assets to show for the expenditure. For example, they had spent £385,000 in the laying down of streets in bitumen. That was a large sum of money; but why was the work done? It was done because the Government wanted better roads to carry the heavier traffic. Tho 8 per cent, which the municipality got from the petrol tax returned them a large sum. From those items alone they had derived a considerable amount, and in the coming year they would receive no less than £31,000, which represented twice the amount of the interest. It gave the city SJ per cent, on the' £385,----000 borrowed. STREET WIDENING. During the past thirty years, since street widening was instituted, the cost had been £160,000, an average of £6000 per annum. The city had today, as an asset against that, buildings and property which were bringing them a very extraordinary amount of revenue. The street widening which had been undertaken since he took office related mostly to Taranaki street and Thorndon, and the returns gave them 5$ per cent, on the money paid. In past years the city carried out reclamation which cost over £100,000. Som« citizens declared that that was the biggest "white elephant" the city could undertake. That so-called "white elephant" was now returning rents of over £50,000 —almost half the capital sum expended. He maintained that instead of v tho city selling properties in Thorndon and Taranaki street which had been purchased, in yean to come they would prove equally as good assets as the Thorndon reclamation had proved to be. He regretted that he would go out of office without having accomplished the Te Aro flat replanning. He regarded that as the greatest problem which Wellington had had for many years, and possibly the greatest it would ever, have. The Te Aro flat was a warren of narrow streets, blind alleys, and byways that would be a blight on tha city perhaps for all time. There were there no fewer than 79 streets of from 10ft to 40ft wide. How that problem was to be solved lie was not sure; perhaps his successor would find a way out. He had, however, been able todo something towards the, solution. The area had been ring-fenced by Taranaki street, S4ft wide, Buckle street, 80ft wide, and Kent terrace and Courtonajr place. He .hoped that whoever succeeded him would take up the matter.