Finance Committee Recommends

Its Finance Committee investigated the problem and emerged with two recommendations, one of which the Executive adopted in full and the other in a slightly modified form. These ideas will be placed before a General Meeting to be held in the Gym on Wednesday, May 30, at 8 p.m. The purpose of this article is to urge you to be there and to place before you in advance the reasons for the proposals. It is not intended to be a detailed examination of all the pros and cons but rather a general summary. The matter will be fully debated and all questions frankly answered at the General Meeting.

The first proposal seeks to divert part of an appropriation fixed in the Constitution to our General Fund for a period of three years. The appropriation is that at present paid to the Building Fund. At the moment 4/- per head of membership plus at least £100 is paid annually to the Building Fund. As we have now collected a large amount towards the building and as we have urgent need of money which cannot reasonably be met out of any raising of the fee, the idea is to divert the 4/- per head for three years. This will provide a sum of just over £1200. What will it be used for?

In the first place of recent years the finances of the Cafeteria have been our No. 1 headache, at least until a private contractor took over. In the first two terms of 1950 a very large sum of money was lost in running the cafeteria. At present the cafeteria's liquid position is in deficit to the tune of about £800. The off set is equipment rapidly depreciating. Executive feels that if the Association is to be financially stable this deficit should be liquidated as the assets cannot be realised and do not represent anything like the amount of the deficit anyway.

In addition to this the money available for grants in the current year is only about £750 when £950 appears to be the reasonable minimum. As a result the only money for grants this year so far has been to [unclear: cover] club essential administration. Therefore £200 is needed to make up the difference". On top of all this we are the hosts for faster tournament next year and the extra expense entailed cannot be all borne by next year's accounts even if the present fee is raised.

The second financial proposal is to raise the fee to £2/5/-. Now the fee was last raised to £1/12/6 in 1945 and before that to £1/7/6 in 1938. All things considered the Association probably offers all its members the best £2/5/- worth available in Wellington. It must be remembered that payment of this fee entitles all members to free membership of all student clubs. This has for years been held a sound principle as it tends to obviate cliques in the more expensive sports. However it carries with it for the Association the burden of paying all normal club expenditure.

The finance committee and Executive consider that £4700 is needed to finance the Association in a proper fashion for a year at today's cost. The biggest single item in that is £1000 for grants. This is caused by the need to meet huge costs for equipment and in some cases, essential affiliation fees. Further to that is the desire to restore some of the cuts made in recent years, particularly to cultural club grants. With a student roll of 2100 £2/5/- is called for.