COUNCIL FINANCES.

Star (Christchurch), Volume LXIV, Issue 829, 1 August 1933, Page 4

COUNCIL FINANCES.

Cr E. H. Andrews Replies to the Mayor. “VERY UNFAIR METHODS.” A reply to statements made by the Mayor (Mr D. G. Sullivan, M.P.) on Saturday when commenting on remarks made by Mr S. G. Holland regarding the transfer of M.E.D. funds was made last evening by Councillor E. 11. Andrews. Mr Holland described the transfer as “ pirate finance,” and in his reply Mr Sullivan referred to an amount which had been transferred for the construction of the women's rest room on the motion of Councillor E. 11. Andrews, when he was chairman of the. council’s Finance Committee in 1930-31. Councillor Andrews said that the Mayor had used very unfair methods in making the statement without giving all the facts. As borne out by the minutes of the City Council, the Finance Committee, of which Councillor Andrews was chairman, on May 26, 1930, recommended the council to purchase the rest room site at a cost of £10.250, the money to be raised by a loan from the Electricity Department's . funds. An amount w ? as to be refunded each year equal to the sinking fund that would be required to pay off the principal under these terms. Provision for Repayment. “ I moved the adoption of the report and the motion was seconded by Dr Thacker and carried,” he said. “On June 23 I moved a further motion that £18,740 be transferred from the electricity account, to meet the cost of providing a women's rest room and conveniences in Cathedral Square. This was done definitely on the understanding that provision would be made for the repayment.” This, he stated, was proved by the motion of Councillor E. R. M’Combs on*the same evening that the question of the conditions under which the amount was transferred b- J referred to a. conference of the Electricity and Finance Committees for a report. “,As far as I can find out that conference was never held nor was any decision come to,” said Councillor Andrews. ‘‘No interest or sinking fund apparently has ever been paid on those loans, which have been transferred purely as grants. To show their wonderful further financing and how the Labour councillors evaded their responsibilities, only £12,350 was wanted for the rest room building when the tenders were received. Instead of returning the balance of £63SS to the Electricity Department, that wizard of finance, Councillor J. M'Combs, transferred it to the general account last year in order to enable him to make the 10 per cent' cut in the general rates.” Councillor Andrews said he would not support the transfer of M.E.D. funds while the council refused to avail itself of avenues of reduction in expenditure that were open to it, particularly the unemployment subsidy, which gave little or no monetary benefit to relief workers, but was simply used to chloroform the voters and make them believe the Labour Party were all good fellows and studying the interests of the poor alid down-trodden. “ But to the elector who has eyes to see, it is an immoral , method of buying votes with the ratepayers’ money,” he concluded.