ECONOMY REPORT.

Auckland Star, Volume LXIII, Issue 234, 3 October 1932, Page 5

ECONOMY REPORT.

LOCAL GOVERNMENT ASPECT. APPEOVAL IN AUCKLAND. RELIEF FOR TAXPAYERS. "The recommendation of the National Economy Commission for a comprehensive investigation, with a view to effecting economics in local government administration, following the recent announcement of the Minister of Internal Affairs in tlie same direction, will, I feel sure, meet with general approval," said the 'Mayor, Mr. G. W. Hutchison. '"The palpable extravagance in administration costs due to multiplicity of controlling authorities renders such an investigation imperative. Not only should such a Commission be able to point the way to substantial relief for local body ratepayers, but also by a reorganisation of the whole system there are many functions at present in the hands of the State Departments that might be more economically dealt with iii tlie ordinary course of local body routine. "One Department that I have in mind in particular is the newly-created Transport Department, which, I am afraid, will develop into an unnecessarily expensive organisation." Changes in Social Conditions. While agreeing that the recommendations would meet with general approval, Mr. J. A. C. Alluin, chairman of the Auckland Transport Board, said it muse not be hastily assumed that any particular local body or department was to blame for the present system and its results. The cumbersome present-day machinery was the result of radical changes in social conditions. "The time has arrived," said Mr. Allum, "when thought must bo given to the subject with a view to removing restrictions that have become irksome. These have been introduced in all good faith, but the time has come for a general review, with a view to simplification and modification.

"Here in New Zealand the Government and local bodies have assumed responsibilities that other countries have left to private interests. Anything that is attempted now must not be in the direction, however, of increasing our difficulties at such an embarrassing period as the present. Merely reducing staffs will not be of much use, as it would mean an accentuation of the unemployment problem. It would be better to endeavour to revise our methods and improve the various departments in the direction of co-ordina-tion of services. Administrative changes must come with caution, and nothing drastic should be attempted if the oountry is to avoid stepping out of the frying pan into the fire." Grouping System. "On general principles I agree that there could be much improvement by tho grouping of local bodies, and the recommendations and comments of the Commission are a valuable contribution to the controversy that has been proceeding for some considerable time," said Mr. W. F. Stilwell, Mayor of Mount Albert. "New groupings could take place in selected localities to lower administrative costs. "It is difficult, of course, to lay down hard and fast rules off hand. Some areas are excellently handled, but it does seem that where, for instance, questions of high finance arise, there should be some system of centralisation. It will never do, however, to institute a schemo that eliminates 60ine form of local representation, as ratepayers have their rights and must be considered. "Water, 'drainage and roading are three important departments of local body work as far as capital expenditure is concerned, and there should be coordination in regard to them. The recommendations seem to point to the necessity of financial grouping in the nature of metropolitan board schemes dealing with the three items I have mentioned. It is obvious that under such a' system tho raising of money would be made easier, as financial stability would be assured. One sees now how much easier it is for the City Council to raise money than smaller bodies, owing to its easier access to the London market. Where grouping is found necessary, some degree of coercion may be necessary in the public interest." " Purely Superficial Survey." "It is ridiculous to assume that wholesale reduction in the number of local bodies means economy in administration," said Mr. S. Donaldson, Mayor of Newmarket. "On the contrary, the creation of large administrative units in New Zealand and other countries has been followed by increased rather than reduced costs. In some cases the result has been financial and administrative chaos. Brisbane affords a classical example. Even in Auckland amalgamations have resulted in increased costs. While it cannot be denied that the present system is capable of improvement by the co-ordination of certain services and utilities, and by the de-

velopment of regional government, it is doubtful whether any good will result by tearing down the existing structure in the manner recommended by the Commission.

"Obviously the Commission-has been hampered by its lack of local government knowledge and of development overseas. It is surprising to find such drastic recommendations, after what must necessarily have been a purely superficial survey of the whole problem. The public will have to guard against panic measures during the present period, when proposals may be introduced entirely opposed to their interests, ami in a direction from which it will bn difficult to withdraw. What will probably be needed in the future is a commission to rationalise rationalisation."