The Evening Star FRIDAY, JANUARY 8, 1937. LOAN PROPOSAL

Evening Star, Issue 22541, 8 January 1937, Page 8

The Evening Star FRIDAY, JANUARY 8, 1937. LOAN PROPOSAL

Comment appears in our correspondence columns on the proposal of the City Council to raise a loan of £IOO,OOO. The recommendation placed before the council by the Finance Committee read: —“ That the necessary preliminary steps be taken, for the raising of a loan of £IOO,OOO for city works under the works department, subject to the granting of a State subsidy thereon from the Employment Promotion Fund.” The discussion on the matter at the last council meeting was brief, and the recommendation was adopted without a division. It is provided in the Finance Act No. 2, passed last year, that local authorities may borrow without a poll of the ratepayers for public works subsidised out of the Employment Promotion Fund. The Act furnishes a safeguard for the ratepayers in the matter, for it is laid down that at any time before the date fixed for the confirmation of a resolution to raise a special loan by special order not less than 5 per cent, of the ratepayers may demand that a poll he taken on the loan proposal. Obviously, therefore, if there is any strong feeling on the matter it would not be difficult to have the test of a poll; indeed, if the ratepayers were alive to their own interests and those of the city they would take the necessary steps provided by law to have the opinions of the citizens recorded. It is to be presumed that the floating of a Joan of £IOO,OOO is generally approved, otherwise some definite indication of a feeling to the contrary would have manifested itself. If the ratepayers let the proposal go through without a poll they will not be justifed in blaming the council afterwards.

In placing the proposals before councillors, Or Silverstone, chairman of the Finance Committee, said, the money was required for important works. All over the city people were asking for footpaths to be formed or put in order, with the necessary kerbing and channelling. Reading also required attention. Cr Silverstone pointed out that in order to provide new works it was a case of either increasing the general rate or of borrowing' money and spreading the expenditure more easily over a number of years. Points of advantage stressed were that money could bo raised at present on excellent terms, and that the subsidy would amount to about £30,000. In the depression years the financial resources of the council were naturally much restricted, and it was inevitable that important and necessary works should remain in abeyance till the financial situation became easier. That time, it is contended, has now arrived. The direct purpose of the loan is nob to ease the unemployment situation, as has been suggested, though it will help in that matter, but to meet the requirements of a modern city, which though conferring benefits on the people are expensive. Under the new dispensation economy in administration is not the first consideration. Costs are mounting in every direction, and the city’s finances will have to be adjusted accordingly. The prospects are disturbing to many ratepayers, who, while agreeing that streets and footpaths, especially in some of the suburbs, are in urgent need of attention, realise that unless reasonable economy in administration is observed increased rates are inevitable, and this would press severely on the workers. There is much room for improvement in the city in our street-cleaning methods and in other ways, and if the loan proposal is carried it would ho reasonable to expect attention to be given to this branch of the corporation’s activitios. The responsibility rests on the ratepayers in the matter of the proposal to borrow £IOO,OOO. There is time yet for their verdict to be given if they wish to havo the issue tested.