LOCAL BODY ECONOMIES

Auckland Star, Volume LXIII, Issue 260, 2 November 1932, Page 11

LOCAL BODY ECONOMIES

"THOROUGH INVESTIGATION." PURPOSE OF COMMISSION. STATEMENT BY PRIME MINISTER. (By Telegraph.—Parliamentary Beporter.) WELLINGTON, this day. The necessity for a drastic overhaul of local body administration, in order to lighten the burden of local taxation on farmers, was stressed by the Prime Minister in the House last night, when replying to the Budget debate. Alluding to the proposed reorganisation of the hospital system, Mr. Forbes recalled that for years in the House there had been discussions on boards, districts, the incidence of taxation, the amount to be contributed by local bodies, and the amount to be contributed by country districts as opposed to towns, and he believed that an investigation would reveal that some improvements could be made in these matters. He was not in a position to say what reductions or economies could be made, but the Government was appointing a commission to inquire into local body finance and administration, and to it could be referred, among other matters, hospital questions. As far as local body administration was concerned, it was important that everything possible should be done to reduce the load on the farming districts.

"Give the House the job," suggested Mr. J. A. Lee (Labour, Grey Lynn). "To Lighten the Burden." Mr. Forbes: It all becomes a burden on the landowners of the country, and in a time like this we should have a thorough investigation. We have had an examination of public expenditure. We have subjected that to scrutiny, and local body administration also should be subjected to scrutiny. I am not making any charges of extravagance, but we must look at the question squarely, and if there are amalgamations and economies that can be effected, in order to lighten the burden of the country, we must take the matter up. A Labour Member: Will the commission be the same in personnel? Mr. Forbes: Wait and see. It will be composed of men with some knowledge of local body affairs. Mr. P. Fraser (Labour, Wellington Central): Would it not be possible to get rid of commissions, and let the House deal with the job? Mr. Forbes: I don't think you would get members of Parliament to sit on a commission and make these drastic recommendations. , "That is what you wanted, then!" chorused Labour members. Mr. Forbes: We had to see that substantial reductions were made. "No Use Tinkering Around." A Labour Member: You instructed them to do it. Mr. Forbes said that in time of crisis it "was' no use tinkering around with a few pounds here and a few pounds there. The position had to be faced, and substantial reductions made. Mr. Fraser: Could not the Government itself do it? Mr. Forbes said there had been a feeling outside the House that Government expenditure was not being kept sufficiently in check, and that considerable savings could be brought about. That feeling was held by the . taxpayer, and the commission which had made the inquiry was one which represented the taxpayer. It was an independent commission, with absolute freedom to suggest ways in which economies could be made.

No Transfer of Burden. Mr. Forbes added that the commission had suggested that local bodies be charged for services performed by the Government, but it was realised that many local bodies were in a very difficult position regarding their own finances, and it was not considered advisable that they should be called upon to carry some of the expenditure which, in the past, had been carried by the Consolidated Fund.