MUNICIPAL FINANCES

Otago Daily Times, Issue 25384, 16 November 1943, Page 6

MUNICIPAL FINANCES

Sir,—l was interested in the half-yearly report of the various trading departments presented to the City Council at its last meeting. I would like to thank Cr McCrae. chairman of the Gas Committee, for his very lucid statement of the affairs of his department. I am sure the ratenayers would have appreciated the same information from the chairmen of the other departments. The Tramway Department, for instance, is very much in the limelight at the present time. The same information with regard to its total indebtediness and the state of the renewal and sinking funds would, I am sure, be very much appreciated by the ratepayers generally. Reverting to the Gas Department. Cr McCrae states that the cash investments of the department are £31,000 more than its total indebtedness, and that in addition, book assets are shown at £474,000. Cr McCrae goes on to say that £12,361 was paid into the renewal fund last year and in addition £5813 was added for Interest earned. He also states that the amount drawn from the renewal fund for the last ten years averaged £5873. Now, Sir, surely this is sound finance gone mad. If the amount received in interest is sufficient to meet the average withdrawals, why keep on paying into the fund over £12,000 more than is necessary? Why not a reduction in the price of gas? That does not seem to be the view of Cr McCrae as he concludes by saying, “ I am not advocating any reduction in the amount paid to the renewal fund.” Why?—l am, etc., Watch Dog.