Further to Councillor Drage's letter in your October 5 edition (Get in a Pickles over facts) I would like to look at the basic economic assumptions behind his assertions.
The largest asset most people own is their house. In the council's case it is a lot of properties.
Most people only increase the mortgage on their house when the value goes up. In fact generally lenders would not increase the borrowings on a falling asset. Yet this is exactly what this Lib Dem-controlled council are doing.
Last year the assets of the council were £756million, down from £805million the year before. The long term borrowings of the council rose from £51million to £63million, an increase of 20 per cent.
The time that the council will pay this back also increased to an average of 29 years from 23 years, meaning the taxpayer will pay a great deal more interest back to the banks.
The Lib Dem council by their own audited figures is over £66million worse off this year than last.
Coun Drage seems to think this isn't anything to worry about but neither did King Canute when the sea came in.
COUN TIM CROWLEY Carshalton South and Clockhouse ward
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