The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. WEDNESDAY, JUNE 15, 1932. A WELCOME REDUCTION

Southland Times, Issue 21729, 15 June 1932, Page 6

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. WEDNESDAY, JUNE 15, 1932. A WELCOME REDUCTION

Ninety per cent, of last year’s rates was collected before the penalty became due, a fact which speaks well for the financial stability of Invercargill. It was anticipated that as a result of the depression the amount of outstanding rates on due date would be much larger than usual, but the results disproved prophecy and the position at the close of the year was creditable to the ratepayers and to the municipal administration. This year, as a result of further economies, it will be possible to maintain the reduction in the rates made previously, and, despite a falling off in the revenue under various accounts, to cut the rates down by a further ten per cent, and budget with the expectancy of a small surplus. Relief to the ratepayers at this time is very welcome, and the benefit will be felt by all sections of the community. The small ratepayer will be grateful for a concession which will mean much to him, and business houses, who provide the larger sums, will find this relief a distinct aid in the current year. People do not realize to the full the position of business firms which have to pay heavy taxation on diminished turnovers and at the same time are compelled by force of circumstance to carry on their books a larger sum in unpaid accounts. While they are carrying on they are providing employment for a large number of men and women and the relief given through the reduction in rates, however small it may be, assists them to maintain their staffs and so keep down the numbers who have to be provided for out of the Unemployment Fund. This year the City Council will have to make arrangements to meet maturing loans amounting to £43,700, but there will be available in the sinking funds some £13,000, so that the amount to be dealt with will be £30,000. Of this sum £lO,000 has been dealt with, leaving £20,000 of the Sewerage Loan of £31,000 domiciled in London to be dealt with by a redemption loan raised in New Zealand. This is the major financial transaction confronting the City Council, and in view of the excellent condition of the city’s finances this matter should be dealt with successfully. The fact that the loan of £8350 issued to redeem the balance of the North Invercargill loans which matured this year was almost fully subscribed without undue effort suggests that the larger transaction will be completed on good terms. From the statement made by the Mayor last night, it would appear that the total sum available, by direct vote and from loans, for providing work which will ease the unemployment situation is over £12,000. This is not a large amount, but it will enable the City Council to give relief to a large number of men during the winter and in the spring, when it is possible that there will be some easement in the situation. It is not wise to be over-optimistic, of course, but though the position at the moment may not be cheerful, there are solid grounds for believing that we are now experiencing the worst of our difficulties, and that the end of the year will see the future more hopeful. Readjustments in the Dominion will have become more effective, and it would appear that by then the world situation will have become clearer. The City Council has overhauled its estimates thoroughly, and it is necessary to bear in mind that the city made its first big cut in the rates before most of the other municipalities in New Zealand ventured to take that course. Judging by the previous years, the estimated revenue has been put at a conservative figure and the reduction in the rates, therefore, has been made prudently. The main point on which criticism can fall is the reduction in the sum allotted for the maintenance of the streets, and undoubtedly the city in the future will have to undertake a larger outlay to make good some of the present economies, but in these times the risk must be taken, and a prudent application of the funds available will minimize the ill effect of the paring in this direction.