TEN PER CENT.

Star (Christchurch), Volume XLIV, Issue 492, 29 June 1932, Page 8

TEN PER CENT.

Expected Cut in City Rates. RESULT OF ECONOMIES. A reduction of 10 per cent in the general rate for the present financial year is expected to be decided upon by the City Council at the special meeting to be held next Monday evening for the consideration of the estimates of expenditure. No official announcement regarding the matter will be made until the meeting of the council, but it is understood from a reliable source that at a meeting of the Finance Committee yesterday the estimates were pruned sufficiently to enable a reduction of 10 per cent in the rate. This reduction has been made possible, it is stated, as a result of substantial economies effected in all departments of the council’s activities. A large amount is to be set apart for the relief of unemployment, and the present subsidy on relief wages of 2s id a day is to be maintained. The Quarry Funds. Since the council purchased the Halswell Quarry some years ago, it has adopted the policy of charging itself a higher price for metal supplied for the city streets than was warranted by the cost of operating the quarry. As a of this policy, the quarry account has finished each year with a surplus, which generally has been retransferred to the general account. The quarry account at present has a credit balance of £31,177, and by transferring a large proportion of this sum to the general account the demands upon ratepayers for the present year can be eased. It has not been revealed what amount is proposed to be transferred, but an amount equal to the reduction in rates could be obtained from this source without impairing the financial position of the quarry. Metal Prices to be Reduced. The large credit balance in the quarry account has been built up in the past year as a result of the work done under the £39.000 unemployment relief loan, some of which is still unexpended. The council now proposes to reduce its metal prices by approximately 25 per cent, and it will still be in a position to- cover the whole of the expenses of the quarry and make a profit, which will be available for expenditure in future years.