CITY FINANCES

New Zealand Herald, Volume 82, Issue 25179, 17 April 1945, Page 4

CITY FINANCES

EFFECT OF NEW AWARD RATES LIKELY TO RISE Nearly £30,000 will probably be added to the wages bill of the City Council as a result of the new award recently issued for the Auckland and Suburban Local Bodies Labourers and Related Trades Union. This is one of several factors which, it is considered, will make a rise in rates inevitable this year. The award, which is current for a period of two years from April 1, embodied the wage increases set out in the Arbitration Court's pronouncement of March 17. Since the award was announced council officers have been engaged on an estimate of the additional cost involved and an early report will be made. It is understood that the increase for the works department alone will be in the vicinity of £IB,OOO, and this figure is stated to be much larger than the increases for other departments. , ... As these figures are based on existing staffs, a further increase in the wages bill will result if the labour market improves and the council is abie to secure much-needed additional staff. This extra labour is essentia! to permit of reasonable headway being made with the council's heavy and costly works programme. Paralleling to a small degree the higher wages allowed under the award are increases in salaries recently granted to members of the professional staff. Further expenditure in this category may be involved by possible new appointments. The council's outgoings are certain to be increased by a higher hospital rate. It was stated authoritatively yesterday that, with new commitments such as the Middlernore and 39th General Hospitals, there would he no alternative lor the Auckland Hospital Board but to raise its ievy on local bodies. What the city's rates will be lor the current year can only be a matter of speculation at present. It is certain, however, that they will go up at least one penny in the pound to 4s 6d, and it is not improbable that the rise will be 2d or more.