LOANS OPPOSED

Evening Post, Volume CXXII, Issue 96, 20 October 1936, Page 10

LOANS OPPOSED

SAVE FOR DRAINAGE

RONGOTAI ITEM CONDEMNED

'PAYING FOR POLITICS'

When asked what he thought the reaction of ratepayers would be to the City Council's loan proposals, the chairman of the Wellington Ratepayers' Association said that his executive had every reason to believe that the proposals would not be favourably received, for, with the rise in rates that had taken place this year and the forecast of more to come next year— whether the loans were authorised or not —ratepayers, particularly home owners, were at last beginning to see that what applied in their home life applied in public affairs, that was, that extravagance created burdens often not fully felt until long after the money had been spent.

"For over six years now the Wel-lington-Ratepayers' Association has been pointing out what the effect of ever-increasing borrowing would be," he said, "but not until increases in rates begin to mount do people realise that not only has interest to be paid on every loan raised, but that the loans themselves have to be paid some time; Renewals -. cannot take place ad inflnitum, but even, if they could, continual borrowing will build up an interest bill that is itself a great burden. Wellington home owners now have to find over £350,000 per annum as interest on their past- borrowings, and much of this borrowing could have been avoided had they been content to take things more quietly ' and pay for the amenities desired out of revenue., which, after all, in Wellington, is more than half a million per annum. TAX GATHERERS. "■• "Municipal and local body debts in New Zealand now amount to more than our national debt was prior to the war. Governments have deplored the rapid growth of local body indebtedness, but, strange to say, they still authorise the raising'-of loans. Why? Because political influence permeates local, bodies today, and instead of councillors being trustees for the funds ratepayers place in.their hands and managers' of the work entrusted to them, they have developed into veritable tax-gatherers planning all sorts of schemes to create a desire for expenditure in the minds of ratepayers. "The latest list is a fair example of what is meant, with perhaps the one exception of drainage. And there :is some doubt as to the urgency even of this proposal.. Doubtless repairs and renewals are necessary, but could not much, of what is required .be done year by year from revenue? The other proposals are all items that' can take I their turn and be done, as revenue is available. ■•■■■': CARDS NOT ON TABLE. "The Rongotai ■ proposal, the associa-1 tion maintains, is a matter ■ for the national Government to shoulder, and in any case the whole of the cards have not been placed upon the table I in the discussions that have alreadytaken place- in regard to Rongotai. Ratepayers will be well advised to1 have nothing to do with this proposal to burden ratepayers with a liability of an additional £70,000. "Finally, the Wellington Ratepayers', Association -maintains that it is not the. duty of the City Council to busy itself finding large works to keep big staffs together. The affairs of the;j city' have to be administered, it is ' true, but now that the city's major works have been completed it should . be possible to do all that is necessary with a much less expenditure of money than- at present obtains. "An unfortunate practice has developed in our civic affairs. Committees now vie with each other, not to- see how economically the city can be administered, but as to how much can be extracted, from ratepayers annually so' that this committee or that can "show what 'it has done in work for this' group of interests or that. Committees approach their estimates from an angle opposed to, all business principles, arid unless ratepayers 'place some' check - upon' them, their burdens will. continue ■to increase. ' These proposals, • involving over £300,000, require very serious thought on the part of the home owners of Wellington, and it is hoped ratepayers will not treat'the" matter I lightly." . ' ■ '