The City Rates And Estimates

Southland Times, Issue 23548, 30 June 1938, Page 4

The City Rates And Estimates

The Invercargill City Council is to be congratulated on avoiding any increase in rating at a time when most city rates are reaching new high levels. The general and special rates, which are levied on unimproved value, actually show an aggregate reduction of onethird of a penny, but this is exactly balanced by an increase of l|d in the drainage rate levied on annual value. Thus, according to the Mayor, it has not been necessary to increase the rate levy in the pound as compared with last year, “although the incidence of rating on individual ratepayers may vary somewhat as a result of the addition of _ the amalgamated area to the city.” The council seems to have balanced its accounts on the basis of the present rate in the pound without any serious cut in necessary expenditure. The only substantial reduction is one of nearly £3OOO in the projected expenditure on footpath reconstruction, but apparently this will be more than made good by expenditure on the same work from the new loan moneys. The elimination of the debit balance of more than £3OOO which stood at the beginning of the last financial year also helped to place the council in a position where it could face the payment of additional interest charges and certain new items such as a contribution towards a provincial court at the Centennial Exhibition, without having recourse to an increase in the rates. The bargain it has made with the Government over the provision of unemployment relief (an interesting commentary, f by the way, on the Government’s claim to have virtually eliminated unemployment) seems to be a particularly good one; and altogether the ratepayers have reason to be satisfied with the new council’s progress so far. It was perhaps too much to expect that the annual “raid” on the Electricity Account would be discontinued or made less severe, even though Cr J. R. Hanan—who last year advocated a reduction from £lO,OOO to £5OOO in the annual transfer from this source to the General Account—is now chairman of the Trading Committee. The transfer remains the sairje —£10,000; and this figure does not by any means represent the total profit, that the council makes out of its electricity Consumers each year. The actual profit in each of the last few years has been something between 40 and 50 per cent, on the annual outlay. Our objections to the council’s practice of profiteering in electricity are well known and do not need repeating now. The practice is one which we are. convinced is opposed to the city’s advancement. But it is at least gratifying to see that the council is increasing the scope and extent of its reductions to consumers and that this policy is being amply justified by results. This year the council has also the advantage of a more favourable agreement with the Government for bulk supply and has been able to offer reductions in charges which are expected to save consumers a further £ 3000 a year on top of other recent concessions. Of particular interest is the substantial reduction in the. charge for household water-heating at off-peak periods. Perhaps now Invercargill will lose the unhappy distinction of having one waterheater, compared with Palmerston North’s 971, New Plymouth’s 1378, and Tauranga’s 549.