A LEADING Southampton Conservative member of the Cabinet facing a charge of “profligacy” by opposition councillors defends the council’s position, with the accusation that they clearly failed to understand the difference between capital and revenue expenditure, as if “capital expenditure ” were of no significance in containing the city’s economic excesses.
With the greatest respect, both are of equal importance. From my experience as former vice chairman of the policy committee, I know only too well that the sums involved would have been out on loan, even if only overnight earning significant interest, and in the process reducing the requirement for raising rates. I also appreciate as he must [clearly if this is not the case he is in the wrong position] appreciate that nearly all capital expenditure involves thereafter a drain on income from the rates, either by way of wages or expenses. So please do not treat your electors as fools, stop evading the issue and answer the questions posed by your opposing councillors!
The truth might even help your cause, evasion will destroy it.
Alan Reynard, Southampton.
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