BOROUGH DEBT.

Star (Christchurch), Volume XLIV, Issue 373, 15 March 1932, Page 1

BOROUGH DEBT.

Thames People Want Rates Reduced. Per Press Association. THAMES, March 15. A meeting called privately by- the Chamber of Commerce last evening was so largely attended by ratepayers that a larger hall had to be engaged to accommodate them. Burning questions, such as the town’s indebtedness, the payment of rates due on March 28, and what debenture holders required, as no interest :iad been paid them since August 1 last, led to much discussion. The present indebtedness is £215.000, the Harbour Board loan is £66,000,2 and the bank overdraft £20,000. Councillor Muir stated that the borough had borrowed a huge amount against its assets, the highest in New Zealand. The present interest liability was £17.000. The 3s rate imposed last year was expected to bring in £25,000, but it was more than likely that only 50 per cent of the collection would be made. Consequently, they could not carry r on. Councillor Garland said that it was unfortunate that the proposals from the bondholders’ committee were confidential, but he could say that they offered no relief whatever, only temporary postponement, and the position in eighteen months would be worse than to-day, but -what could they offer the bondholders? He advocated a reduction of interest to 2 per cent, which meant a 2s rate, which they could pay. The following resolutions were carried : “ That in the opinion of the Thames business people the crushing: rate at present levied is beyond the capacity of the town to carry. A continuance of such rating must inevitably ruin business and destroy the bondholders’ secur- “ That a commissioner be appointed on behalf of the bondholders and ratepayers to inquire into the present position and future prospects of the town and to recommend a maximum rate that ratepayers can reasonably be expected to pay to meet the reduced loan interest and general administration expenses. “ That the possibilities of further reductions in the borough management be “ TliaV the council be requested not to increase the rates fc-r the next financial year, but endeavour to reduce the same, and should the council be unable to legally operate without an increase in rates, that it be asked to consider its resignation as a body in th*e protection of the interests of the ratepayers.”