AMALGAMATION SCHEME.

New Zealand Herald, Volume LXIX, Issue 21116, 25 February 1932, Page 12

AMALGAMATION SCHEME.

MOUNT EDEN AND CITY. FINANCES OF THE BOROUGH. An address on the proposed amalgamation rjf Mount Eden with the city was given by Mr. W. 11. Nagle, chairman of the finance committee of the Borough Council, at Mount Eden, last evening. The Mayor, Mr. T. McNab stated that if the borough was to continue to function and to meet its obligations next year's rates would have to be increased by Is in the, pound. Amalgamation with the city would thus relieve the burden of rates; provide cheaper water; and materially aid the unemployment position in the borough. Mr. Nagle said the current year's revenue from rates would amount to only £49.000. The borough's fixed charges for this year, excluding sinking fund, totalled £56,422. There was an outside revenue of only £B2OO, and the cost of the borough's services to its ratepayers was £16,300. The council would have to start next year with a floating debt of £58,000 on its general account. The council had correctly estimated that a rate of 5s would be absolutely necessary. MOUNT ALBERT PROPOSAL. PROTEST AGAINST TERMS. Objections to the terms of the proposed amalgamation between the city and Mount Albert are contained in a statement by Mr. R. E. N. Matthews, president of tho Mount Albert Loyalists' League, "and issued as the league's official reply to the circular signed by the Mayor of Mount Albert, Mr. W. F. Stilwell. In particular, objection is taken to the suggestion that shouW remain a separate rating area for three years after amalgamation. It is stated that possible future benefit from amalgamation is an extremely doubtful quantity, as if the depression continues the heavy fall in annual values will force a considerable increase to be made in the rate to be struck by the City Council. The opinion is expressed that the Mount Albert Borough Council failed to obtain reasonable terms from the City Council and should absolutely have declined to undertake the responsibility of . putting the proposals before the electors on March 9. "The Mayor's circular frankly admits that the average ratepayer must expect a substantial increase in his water rates if we join the city under the proposed terms." savs the statement, "and it is unquestionable that there is no possibility of relief in our general rates during the succeeding three years. Ihis, to our minds, is the most serious feature of the whole business, and explains the reason why the city insists that Mount Albert be made a separate rating area for the next three years." The statement adds that although the Mayor's circular is an obvious attempt to fairly present the position from his point of view, it has failed in many respects to do so. The advantages of some of the city's assets are said to be illusory and really onerous burdens which represent a heavy drain on the ratepayer's purse.