MUNICIPAL FINANCE.
SOME" STRONG CRITICISM.
"by telegraph.—special correspondent.]
Wellington, Saturday. Municipal methods and muddles concerning the keeping of accounts and finances relating to loans came in for a free criticism at a meeting of local accountants. The Chairman (Mr. J. S. Barton) said the Wellington corporation, had altogether failed to recognise good accountancy and sound financing in their relation to the tramway loan. It had, apparently on the advice of the Government auditor, provided a sinking fund of one per cent, on the amount of the debenture loan, and, presuming this fund would earn four per cent, interest (the debentures had a currency of 30 years), the one per cent, provision at four per cent, interest would take 41 years to accumulate to the required amount. But the more serious phase of the question lay in the possibility of the present electric tramway service having a life of only 20 years, which was the estimate of competent authorities in regard to similar undertakings. He thought the City Council should have put aside a sum of not less than £10,000 out of profit and loss for repairs and renewals and depreciation, and that the sinking fund instalment should be at least 1£ per cent.
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New Zealand Herald, Volume XLII, Issue 12908, 3 July 1905, Page 3
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203MUNICIPAL FINANCE. New Zealand Herald, Volume XLII, Issue 12908, 3 July 1905, Page 3
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