AUCKLAND CITY FINANCE.

New Zealand Herald, Volume LXVII, Issue 20713, 5 November 1930, Page 12

AUCKLAND CITY FINANCE.

REVIEW BY COUNCILLOR. SOUND AND STABLE POSITION. The undoubted stability of the municipal finances of Auckland was emphasised by Mr. G. W. Hutchison in an address last evening at the annual meeting of the Rcinuera Last Ratepayers Association. Speaking as a member of the City Council and a public accountant, Mr. Hutchison said the Auckland Municipality would rank as high as the Government, if not higher, on the London money market. It was satisfactory to know this, considering the atmosphere of pessimism that existed at present. The speaker displayed a series of graphs showing the growth of city revenue, assets, public debt, sinking funds and population. He estimated that 50 years hence, the population of Greater Auckland would bo not less than 750,000, and that of the Dominion 4,500,000. This was bfised on the assumption that Auckland would continue to grow more rapidly than the rest of New Zealand. Its progress, as shown by the graphs, had been not only remarkable, but reasonably constant, and periods of boom and depression alike had failed to affect the steady forward trend in any degree. > After a full review of the city's liabilities and varied assets, on the _ lines of addresses which he had previously given to commercial bodies, Mr. Hutchison said the net liability after deducting accumulated sinking funds was £6,477,500, and the surplus of assets over liabilities was £3,903,800. What concerned the London investor in an Auckland City loan was not so much the surplus as the annual ratable value of the city. This to-day stood at £2,715,876, compared with £424,149 a quarter of a century ago. The speaker defended the City Council's practice of accepting money on deposit at call, which, he said, had recently been attacked. The practice was expressly sanctioned by statute and had several advantages. It effected a saving in interest and enabled maintenance works to proceed pending receipt of rates, authorised capital works to start while loans were being floated and loans to be deferred if terms were unfavourable. It was also a convenience to business firms. . In a reference to the physical extant of the city, Mr. Hutchison remarked that possible protests from some quarters would not deter him from stating his firm opinion that it was essential for the proper development of the whole area that Newmarket Borough should be absorbed by the city. Traffic facilities alone were sufficient to warrant this.