Wellington City’s Extra Load

Manawatu Times, Volume LVI, Issue 7066, 27 January 1933, Page 7

Wellington City’s Extra Load

Times' Special, WELLINGTON, Last Night. “The full detailed figures showing the ultimato effect of the increase in the exchange rate on the city linances are not yet complete," said the Mayor of Wellington (Mr. T. C. A. Hislop) to-day. "But it can be said definitely, however, that there will be an increase in our interest bill overseas of between £15,00.0 and £.16,000 a year. In addition to this, various indirect effects of the exchange rate upon other sources of revenue make it appear clear that wo will be about £25,000 worse off next financial year on account of the exchange inflation. Added to this, there are other items upon which the revenue will be decreased, so that, as I see it at present, it may be taken that the available revenue for ordinary set purposes next financial year wilt be- at least £30,000 less than in the current year. The net result is that next year there .will be available for carry-

ing on the services of the city appa* ectly only half the amount that was expended in the year immediately prior to the present council coming into office. “One thing is now quite clear, and that is that after the 31st March of this year the council will not he able tc carry on any unemployment relief work. That will have to he financed and controlled wholly hy the Government. Last year out of revenue alone the council spent £BOOO on unemployment relief. The exchange inflation wipes out definitely any possibility of the council carrying any unemployed in the future. “Perhaps Mr. Coates, as Minister of finance, will find that the burden he has created by his exchange inflation policy will be passed on to him to carry. “One matter I did not mention at the public meeting to-day was the in. equality of Mr. Coates’s exchange inflation policy. Under it the farmers, no matter what their resources, are going to get the benefit-at the expense of others. It is well known from figures available in certain financial quarters that there are large numbers of New Zealand farmers who have on doposit sums of £IO,OOO, £20,000, and £50,000 and more, and yet these people are going to get a bonus at the expense of those unfortunate individuals who are without anything.”