CITY COUNCIL IS TO DRAW ON M.E.D. PROFITS

Star (Christchurch), Issue 19034, 1 April 1930, Page 16

CITY COUNCIL IS TO DRAW ON M.E.D. PROFITS

ADVANCE TO BE MADE FOR NEW AVON BRIDGE. A further phase of the question of the cost of the new bridge over the Avon at New Brighton came before the City Council last evening in a report from the Finance Committee. The report recommended that the Electricity Committee should inform the Finance Committee as to how it was intended to allocate the electricity profits, so that money could be drawn to meet the council’s share of the cost of the bridge or for any other purpose that the council might decide. The Finance Committee reported that it. had given further consideration to the question of making provision for pavment of the council’s share of the cost of the erection of the Seaview Road bridge and the additional cost involved in connection with the raising of the height of the bridge and the previous recommendation that the cost of the bridge should be advanced from the credit balance in the electricity department's funds. In view of the fact that the policy of the department had been to transfer to the general reserve its profits for each year, and as recently passed legislation prevented such allocated funds being drawn on for any other purpose, the committee recommended that the Electricity Committee be instructed that in future, on ascertaining its profits each year and before allocating them it should make a recommendation to the Finance Committee as to how it proposed to allocate such profits. This would allow the council to provide for a reasonable sum to remain as a credit balance not carried to reserves, which could be drawn upon to make an advance to meet the council’s share of the cost of the bridge, or for any other purpose decided on by the council. The committee recommended further that the amount of the advance in connection with the bridge be reimbursed to the department by a reduction in the administration charges spread over a period of thirty-six and a half years. Councillor D. G. Sullivan, M.P., moved that the word “shall" be substituted for “should," the recommendation to read, “cost of the bridge shall be advanced." It was decided to alter the wording as moved. The recommendation was then