RATE REDUCTION

Evening Post, Volume CXI, Issue 94, 22 April 1931, Page 11

RATE REDUCTION

WHAT IS POSSIBLE

THE 10 PER CENT. MYTH

While consistently advocating limitation of tho rates' for the ensuing year to an amount which will not increaso tho present burden of the ratepayers, Mr. Luckic pointed out at Island Bay last night that a good many of those candidates who are standing on the municipal platform for the first time had made promises to reduce the rates by 10 per cent.; but as he pointed out, they were not only speaking without fully appreciating the position, but were likely to seriously mislead the public, who naturally would expect a 10 per cent, reduction in their total rates.

The total rate revenue was between £525,000 and £530,000 last year, and 10 per cent, of this is upwards of £52,000. It has, however, to bo borne in mind that about three-fifths of that amount, roughly about £320,000, is a permanently lecurring debt representing hospital and charitable aid rates, and rates pledged to pvovido interest and sinking fund on outstanding loans, which not only cannot be reduced, but will probably be increased by between £10,000 and £13,000 this year, as a Tesult of the first payments of interest and sinking fund on recently-raised loans, which have not hitherto been a burden on. the rates. The consequence is that on a 10 per cent, reduction the whole of that '£52,----000, as well as the £10,000 or £13,000, making a gross total of between" £62,----000 and £C 5,000, would have to come off the -general rate, whjch last year only'amounted to £208,000, or thereabouts, representing a 30 per <;ent. reduction in tho rates available for expenditure in tho city, which is too extravagant, and involves a, reduction 1 which the city could not afford to malto without seriously depicting its staff, reducing employment, and holding up a considerable amount of • necessary work;