LOAN PROPOSALS

New Zealand Herald, Volume LXX, Issue 21578, 24 August 1933, Page 11

LOAN PROPOSALS

CITY COUNCIL'S SCHEME APPROVAL OF RATEPAYERS RAISING PURCHASING POWER Endorsement of the City Council's £116,000 loan proposals was given at a small meeting of ratepayers in the Point Chevalier Hall last evening, after members of the council had explained the purposo of the loan. Mr. M. J. Coylo presided. "Perhaps the small attendance is a sign that the bulk of the ratepayers have implicit faith in the council," said Mr. H. P. Burton, chairman of the Works Committeo. Ho said the number of letters' that had been received congratulating the council on its decision to take a bold step toward increasing confidence and prosperity had heartened the council very considerably. It had to" bo realised, ho continued, that tho works would not represent any charge on tho ratepayers The waterworks portion of tho loan could be met fully in its own account at the present rate of income without any extra charge, while the charges on the remainder of tli3 loan represented only one-fifth of a penny on tho rates. He >was satisfied, moreover, that even this small charge would not fall on tho ratepayers, since he was confident tho exchange rate would be lifted before long, and this relief would more than meet tho sum required under the proposals. "More necessary works than these have never been placed before the ratepayers," ho said. "The world is just beginning to come to tho conclusion that prosperity can be regained only by increasing the purchasing power of tho people," said Mr. D. Donaldson, referring to the proposals of the council to pay full rates of wages, plus an extra day, to men with four or more children, engaged oil the works under tho scheme. Ho said the maximum at present for such men was £1 16s, and the council proposed to increase this to £3 9s 2d weekly. Ho expressed the hope that other local bodies throughout the Dominion would before long follow Auckland's lead. "Although we did not know our beliefs would be endorsed so soon or so influentially, it is most gratifying to the council to see President Roosevelt and the American nation commencing a scheme along the same lines as our small one," said Mr. T. Blood worth, amid laughter. He pointed out that not only would the unemployed and their families benefit from the increased wages, but the landlords and ■the shopkeepers also would receive a direct gain. "Above all, the chief fact to remember is that all tho works are essential, and would have been undertaken three years ago if the depression had not intervened," lie added. Questions concerning the work being carried out in the vicinity of the "Old Stone Jug" were answered by the speakers, who pointed out that the Unemployment Board dictated the conditions under which relief works were to be undertaken.

A motion expressing approval of the proposals was passed without dissent.