RATEPAYERS' BURDEN

NZ Truth, Issue 1062, 1 April 1926, Page 3

RATEPAYERS' BURDEN

Demand for ßetrenchment [ M "Municipal Activities DEBT 'OF £35 PER HEAD (By "Fiat Lux") , ■ /'< ' ' Truths recent criticisms of municipal accounts are helping ratepayers towards* a better understanding* of the financial affairs of local bodies. .

. TNT 1895 the gross indebtedness of local * governing bodies m New Zealand was a modest £7,422,000— equal to only £10/2/11 per head of the whole of the population of the country. Ten years later — m 1905-^-the figures were £12,056,000, equal to £13/15/11 pcr 1 head./ In the ten years ended m 1915, however, the collective debt had more .than doubled itself, jumping to £24,634,000, which worked out at £21/8/3 per head. In 1924 (the latest returns at present available) the gross debt had increased to the astounding total of £47,126,000, equal to- a shade under £35 per head, and involving an annual charge of. £2,799,000 for interest and sinking fund. The yearly increase l-eached its peak m- 1922 — 1923, when £.6,478,000 (equal to £4/7/1 per head) was added to the total. x . , Whilst a considerable proportion o£ all this money has been sunk m directly productive ventures, such as hydroelectricity works, drainage, sanitation, tramways, waterworks, etc., it is the general opinion among financial critics that the time for strict economy m the spending of loan money by local, bodies is long overdue. ,- RAPID INCREASE It is with this tremendous and rapidly increasing debt of local bodies m. mind that "Fiat Lux" has taken up the question of municipcl accounts. Gisborne's plight has already been dealt with, and -m future articles it is proposed to review the financial position of Wellington, Christchurch, Dunedin;' Wanganui, New Plymouth, Napier and other important centres. It is felt that ratepayers generally fail to take sufficient interest m municipal accounts^ Certainly, as these accounts ax ; e now presented, they leave very much to. be desired and reforms m this respect 'are urgently required. ■-; Failing the publication of simplified accounts, however, "Fiat Lux* will do his best to enlighten ratepayers regarding the true position of any particular local body. , . •_'.. Ratepayers m, general, are really . anxious to help things along, but without guidance m the interpretation of accounts they find it very difficult to do so. j . To those confirmed / pessimists who can see no good m anything, and to whom all clouds appear black, "Fiat Lux" would say: "Get your coat off and help those who are carryng on the legacy of debt bequeathed by a long period of ill-considered and improvident expenditure on the part of local bodies." Ratepayers must get a real economy campaign going and should not ' let their efforts end by dealing only with loan expenditure. ' .;■ >. They must apply principles of strict economy to the spending ;. of every ; penny of the rates, , arid .their efforts should . extend to. the : whole 'of , the nruriicipal 'undertakings - — tramways,, electricity, gasworks, and street maintenance, ■■ / - "■•■.■ ,--.-■■■ .."•■.- .'.'"■

It must b,e rememljered that the expenditure of local bodies has a direct influence on the cost v of living. ' . Take for instance, the case of a family visiting Christchurch for -a short period — say twelve months. They naturally rent a dwelling, the owner of which last year got 35/- a week- for the place. Owing to increased expenditure by the City Council, however, the total rates on the property have this year been increased from £12/10/- to £16, and the owner quite reasonably demands additional rent to cover his extra outgoings. Now, if this increased rent was the actual amount of increased rates (3/10/-), the position would not be so bad. . > But £3/10/- per annum is a shade over 1/4; per week, and it is' incredible under the circumstances that a landlord should assess his rental at 36/4 per week. No, it is much easier to calculate at 37/6 per week so you pay 37/6 a week without realizing what has happened or how it has happened. All you know is that your money doesn't go as far as it did m the little backblocks town, and you promptly seek the easiest way out by asking your employer for an increase' m wages J to cover the increased cost of living m the city. ....■,'.. , Let this little example serve to pi'bve that strict economy in ' municipal activities is the concern of all sections of the community — not only city councillors and property owners. -