WORK ARRESTED

Evening Post, Volume CXXVI, Issue 77, 28 September 1938, Page 5

WORK ARRESTED

REDUCTION OF RATES

INFLUENCE OF POLITICS

"Due to the influence of national politics in local body affairs, the work done by the association in the direction of influencing a reduction of the extremely heavy rate burden, which now approximates £600,000 annually, has been temporarily arrested," stated the report presented at the annual meeting of the Wellington Ratepayers' Association last evening. "Mainly due to rising costs brought about by the policy of j the Labour Government, rates in Wellington were again raised this year, making a rise in two years of £100,000. Although, as stated, the primary cause of this heavy advance is due to the effect of Government legislation, it is necessary to point out that the prodigal borrowing policy of the Wellington City Council over the past 20 years has brought in its train a very heavy interest bill which now earmarks —so to speak—quite half of the actual rate levy, and the experience of the past few years has shown that the balance is not adequate to meet maintenance and other demands which are made upon the resources of the city as the year goes by. ! "Whilst the City Council has not yet adopted the policy of 'the sky is the limit,' its actions are dangerously in that direction," continued the report. "The net city debt, that is, after allowing for sinking fund credits, now approximates £5,000,000. Is it any wonder, therefore, that ratepayers have had imposed upon them excessive rate demands? DANGER OF OVER-BORROWING. "In 1930 when the Wellington Ratepayers' Association was inaugurated, the founders of the association realised the danger to ratepayers of overborrowing, especially when a great deal of it was not sanctioned by ratepayers whose property had to be pledged as security; and having in view the ever-increasing interest bill, they embodied in the object clauses of the constitution of the association these words*—'To see that no loans are raised for which the ratepayers' property stands as security for repayment without first obtaining a poll of ratepayers.' "All Citizens' candidates elected to the City Council since 1930 have voluntarily accepted this clause as an un-, written pledge and endorsed it on their election platforms. Unfortunately, however, the promise to electors has not been kept, and in spite of the fact that the present council has found that it cannot carry on the administration of the city without again advancing the total of rates levied and demanded, the Ratepayers' Association finds that within the past few weeks the City Council has obtained legislation authorising it to borrow £50,000 on the pledge of ratepayers' property without first obtaining their consent by poll as promised. And worse—the reason given to the Legislature for this right to override the will of ratepayers was that the council was of opinion that ratepayers would not sanction a loan. Leaving aside the merits or demerits of the scheme for which the loan is required, your association affirms that the reason given is a clear indication that councillors have deliberately broken their pledges and thwarted the will and rights of ratepayers. j " 'No loans without a poll' was a deifinite plank in the election platform of Citizens' candidates at the recent coun- { cil elections, a policy advocated upon! the hustings; and yet within three months of their being sworn, these chosen candidates are definitely found guilty of having violated their pledges to ratepayers."