INCREASE IN COUNTY RATES

Timaru Herald, Volume CXLVI, Issue 21361, 2 June 1939, Page 6

INCREASE IN COUNTY RATES

Budgeting for a Deficit Mackenzie Council’s ‘ Decision An increase of l-16d in the £. brlng-l ing the rate up to 1 3-lfld in the £ was decided on at the monthly meeting of the Mackenzie County Council jester-, day. This will leave a deficit of £44o* above the £3007 debit balance carried, over, from the previous financial year. The Council had three proposals before it. One was to leave the rate at. 1 l-8d in the £ as at present, the second I was to strike a rate of 1 5-32 d in the £, * and the third was to strike a 1 3-16 d in the £. The estimates allowed for a| deficit of £572 above the debit balance* brought forward. This left an estimated debit balance for the end of the | present year of £3579, and added to this was an estimate of £5OO which, it was anticipated, would be outstanding ini rates at the end of the year. The total ’ deficit above the £3007 debit balance brought forward would, retaining the f present rate, have been £1072. The rise of l-16d in the £ will yield £630, and when this is deducted from | the estimated debit balance It leaves a ’ deficit of £442 above the debit balance carried forward, or a total estimated ; debit balance of £3449. “Cold-Blooded Demand” “I cannot see how w T e can avoid rais- I ing the rates when we get a coldblooded demand for an extra £BOO from the Hospital Board,” said Mr C., V. ! Kirke. “It is no use leaving the ratd”* as it is and letting the county's finances drift.”

Mr W. Scott said he had made up his mind that the rates were at their peak., but he could not see how they couldJ avoid raising them this year. *

“Now is the time we should be reducing our rates,' said Mr W. R. Davison. "We have had an adjustment” commission around but the farmers are as badly off as they were before." He. < moved that the r ate remain at 1 l-8d as at present. Mr A. B. McKenzie, who seconded the" motion, said that even if they let the roads go a little for the coming year they should not raise the rates.

“One of my reasons for coming on to( the Council was to keep the rates down,” said Mr Kirke. “We must" realise, however, that to carry on we must stop our finances from drifting. It is no use to the ratepayers if we are going to let the deficit accumulate) like a snowball each year.” Mr Kirke moved as an amendment) that the rate be raised by l-16d to 1 3-16 d in the £. t

Responsibilities I "We do it with great reluctance," said Mr C. J. Talbot, in seconding the! motion. “I would like to see a reduc-> tion but we have our responsibilities to face. It is unsound finance to keep, budgeting for a deficit.” The experi-l ence of last winter had shown that the roads were going back. Good roads! helped the working of farms and rate-1 payers demanded that all roads should be in good order. The additional rate, would not decide between the success orj failure of a farmer’s working. The total rate might have its effect, but thel increase alone would not be the arbiter.! They would have to arrest the drift of the county’s finance and possibly a shingjing loan would be necessary be-i fore the deficit was wholly wiped out.' “Put a higher tax on petrol,” suggested Mr Kirke. “If the sum paid to the consolidated fund was reduced and the money put on the roads it would be a great help,") said Mr Talbot.

Business Point of View J Mr G. Murray said that looking aw the question from a business point of view they had to make an increase. J Mr J. Allan said the whole trouble la/ in the extra hospital levy. Mr Scott said that shingling wa< necessary throughout the county. The position was forced upon them, and if there was no alteration next year drastic steps would have to be taken. The. mileage in the county was great and the land poor. “With better organisation of the | staff and a determination to keep costs down we should be able to carry through,” said Mr Scott. , The amendment to increase the rate to 1 3-16 d was carried, the voting being: | For: Messrs Kirke, Talbot, Murray i and Scott.

Against: Messrs Davison, Mackenzie and Allan.