REDUCING OF OVERDRAFT

Wanganui Chronicle, Volume 76, Issue 97, 27 April 1933, Page 6

REDUCING OF OVERDRAFT

MEN WOULD HAVE TO GO. THE MAYOR EXPLAINS. What would happen if Wanganui was to cease to lean on th c banks for overdraft was explained by the Mayor (Mr. N. G. Armstrong) at'Wanganui East last night. “Docs Mr. Hogan suggest that we put off the permanent hands to reduce overdraft?” h 0 asked. “Because that is what will happen if we do. “If a council issued its rate demands on April I and sued for the amount of each demand within 14 days, it might do without overdraft, but what council can do that? Will Mr Hogan do it?” Tho Mayor then explained that an overdraft was secured against outstanding rates. The trouble every year was getting out the rate demands. Owing to thc lengthy sitting of the Assessment Court last year it had not been possible to demand rates until September. Ratepayers did not pay up until the 10 per cent, penalty went on. Last year £30,000 was paid in the three days before the penalty was applied. This year the penalty could not go on until Mav 10 and the overdraft was now £2O. 000'. Mr. Hogan had quoted other centres in New Zealand, but had not quoted them all. For instance, he had not mentioned Dunedin, where, over the past four years. £7,897 had been paid in interest on overdraft. He quoted New Plymouth. There they had a very fine electrical service which was revenue producing. They were able to carry on from thc revenue from that until the rates came in. In Wanganui the gas works was the only trading concern and it supplied the cheapest gas in New Zealand A sum of £2OOO had been taken from tho gas department last year to reduce rates and £750 applied to the relief of unemployment.