CITY ESTIMATES

Evening Star, Issue 17327, 15 April 1920, Page 8

CITY ESTIMATES

PROPOSED EXPENDITURE £117,383. LETT ON TRADING ACCOUNTS IN RELIEF OF RATES. £28,917 THIS YEAR. HIGHER CHARGES PREDICTED. The Finance Committee presented to the City Council last night the draft estimated receipts and expenditure of the general account for the year ending March 31, 1921. In summary the figures showed a proposed expenditure of £117,383, ae against £104,390 for the year just closed. The estimated income, on the basis of last year's rating and transfers was shown as £108,556, leaving an increased amount of £8,997 to be found either by advance of rates or increased levy on the trading accounts. In view of the heavy increase in the basic rate (in view of the Hospital rate of 8d) the committee recommended that the estimated deficiency should he made good this year by increasing the levy on tho trading accounts, and taking £28,917 from them; the general rate remaining Is 9d in the £, as last year. Cr Taverner (chairman of the committee) said the deficiency was considerable, and the committee were loth to suggest a higher general rate on top of the big rise in the Hospital rate. The

only other possible method was a levy on the trading accounts. The levy proposed on this occasion was 2 per cent, on the loan capital of the tramways, gas, and electric accounts, or an increase of double the amounts previously transferred. This expedient was suggested for the year; but it was certain that the position would not have altered in the next 12 months, unless for the worse, and the money must be found for works, since, if they retrenched on necessary works, they would later have to spend £5,000 for every £2,000 stinted now. While 2 per cent, must be taken to be the maximum transfer advisable from the trading accounts at present, if in, time it became necessary to provide a greater sum to make np deficiencies, that sum could be found from the trading accounts if the prices were increased at which tho commodities were sold to the City. He believed that such a situation would come to pass, and, for his part, regarded such indirect taxation as preferable to increasing the rates, since it spread the burden over a greater proportion of the public. If the time came when - it was necessary to increase the transfers from the trading accounts, that could he done onlv bv increasing the price of the trading departments’ commodities. He wanted that clear. With the present prices the process of transfer could not he carried further than the 2 per cent, now levied. It was, he knew, considered debatable in some quarters that this method should bo adhered to. Some thought that nothing should be transferred from the trading departments, but that their money should be used Internally to extend the' benefits of the services or relieve their cost. He. however, had always subscribed to the principle of transferring 1 per cent, of trading department profits to the general account, and he believed that in present circumstances it was a business proposition this year to transfer 2 per cent. In the future they must either raise the general rate or increase the the commodities the trading departmefrtl provided. Tli third alternative—restriction of work—would lower efficiency.

Or Walker seconded the motion pro forma.

Cr Jeffery said that councillors had not had time to digest the report. It was very easy to get oflt of difficulties by drawing on tho trading departments, hut bv doing so they were crippling their efficient departments. He looked upon the question of drawing upon the trading funds, instead of raising the rates, as a most objectionable feature. The more they drew upon the trading funds the more they would get themselves into the mire. Ho moved as an amendment “ That further consideration of the report be held’over for a fortnight.” Cr Scott seconded.

Cr M’Donald said that to carry on the works he saw no other way of doing so than by taking a substantial amount out of the trading concerns. He congratulated the town clerk on a most intelligent and well thought out report, and he had no doubt that the various municipalities would compel the Government to find the Hospital rate out of consolidated revenue.

Cr Bradley admitted that there was no way out of the question except as the committee proposed, but it appeared to him an anomalous position that the E.P. and L. Department, which had asserted that it could not afford to forego, meter rents as it had promised to do, could yet afford to pay over £9,000 by way of levy. Cr Walker supported the Finance Committee’s recommendation. The traders here had tlie cheapest commodities of any of the other centres. If some councillors were sincere in the matter let them move that the rates he increased. To increase the rates at the present time on people owning small properties would be a most wicked thmg. The trading departments con d stand the increase quite well. Cr Shaddock said the trading concerns could the drain this year, but it was high time the ratepayers had some consideration for the trading departments'! Sj r rbayward thought that the policy was bad—that of robbing departments so that tne City TDi’rrht spend more than its income. It might have been better to have made a small rise in the general rate. Cr Green was sorry the trading de- ! P‘} r tments had to be drained every vc-ar. I Ti councillors had been wise in their generation there would have been no surpluses to bo devoted to general account, and the works of the departments would have been further forward. For example! they wou.d nave had the necessary trollies to carry the material for their works from end to end of the City; they would have had rails; they would have had rolling -_ock. And so with other departments. They could have spent all the money accruing to them to the advantage of "their services. Again, they were taking £II,OOO trom the water department annually, with he result that they had to go before the ratepayers for a water loan with the possibility oi a 4d rate. It was with regret that he consented perforce to (ho rin a nee Committee's proposal. tw ,y ilson /; ai f there was no doubt that the council should adopt the Finance Committees report. He asked who were the councillors who onposed the Works Comnnrtee in purchasing certain motor trucks They were £2.000 to the had through not purchasing them at the time, and they had no idea now when they would arrive. . “

i\dnp te^ m611 611 f ' was ’ ost an d the report