WHAT IS THE POSITION ?

Evening Post, Volume CXI, Issue 130, 4 June 1931, Page 10

WHAT IS THE POSITION ?

In his explanation of the municipal financial position, the Mayor informed the Finance Committee that £23,000 of rates, due but not paid, had been credited to last year's revenue. No allowance had been made for the rales which might not be collected. One councillor remarked that he had not known of this being done before. The statement needs further elucidation. What has been done before? Did the council begin the year 1930-31 with a b:\lance of £10,000, which included rates due but unpaid, as the council has begun the year 1931-32 with a credit balance of £1000 which would not be there but for the inclusion of £23,000 rates unpaid? Further, in 1930-31, if the unpaid rates helped to provide the credit to start the year, did they also help to swell the receipts during the year? Or were the unpaid rates not counted last year, but included in receipts when they were paid? If the latter course were adopted, 1930-31 has been made to appear more favourable than it was in reality, as overdue payments and prospective payments are both credited. The Mayor should clear up the position, for it is essential that the council and ratepayers should know exactly how the finances stand. Paper balances are little use if there is a prospect of their not becoming actual. Indeed, such balances are dangerous, as they mislead the people and make it harder to persuade citizens to accept necessary economies since the need for such economies is not fully realised.