LOCAL BODIES' FINANCE.

Press, Volume LVII, Issue 17294, 4 November 1921, Page 7

LOCAL BODIES' FINANCE.

cm COUNCIL'S ATTITUDE. The Local Bodies Finance Bill, and also the Highways and Motor Vehicles gill foimed the subject of a special meeting of the City Council last n.ght. There were present—Crs. J. A. Flesher j (Deputy-Mayor), H. T. Armstrong, McOombs, H. Hunter, McGregor Wright, "W. H. Winsor, J. R. Biunt, E. H. Andrews, A. Manhire, A. McKelLar 1 , J. . L. Gantj H. F. Herbert, and J. K. j Archer. Dealing first with the Local Bodies Finance Bill, the Deputy-Mayor said that the Bill had been brought down with the avoived object of making local bodies live within their means. There vei'6'in it some very drastic provisions, one of which was that no local body ' could take money on deposit for its operations. " That was a most retrograde step. The action of the Governinent*ff s s not understandable. Hither- | to the city had boon enabled to borrow i np to. the whole extent of its revenue, jjjuing the time that system had b.vn i jn operation the city must have saved at least £20,000, and why the Government, in these times of stringency, ghould make such a provision was hard to understand. It was playing into the hands of the banks. Cr. Herbert said he thought it was rather crude on the part of the Gorenunent to introduce such a Bill. The municipalities had in the past shown their ability to carry on their own affaire in a better way than could be expected from the Government. After some further remarks on various aspects of the Bill, Cr. Fiesiier mpved: —"That the Council approve of the general principle that local bodies should so conduct their oporations that liabilities contracted and expenditure mode on the general account should be met by yearly income." - Cr. Armstrong considered that the Bil 1 should not go through without a .proiest from the Council. Gr. Manhire thought that the Bill should have been named the "Banks Protection Bill." There should certainly be a limit on the rates that the banks should charge on overdrafts Cr. Winsor said that the Bill gave a chance of introducing beneficial legislation later on. The power of borrowing without going to the rate-payers might prove an advantage they might receive / from the Bill. Cr Hunter moved as an amendment Uiat the local members of Parliament be asked to vote against the Bill m toto. / The Council, Jie considered, should ad- ' : mit noright on the part of the Govern.stent to interfere. It seemed to mm extraordinary that the most extravagant Government New Zealand had had stould bring forth such proposals. ". After some further discussion the. •chairman's motion was carried, as were the following additional motions: "That this Council, while approving . of tlje object aimed at by the Local Bodies Finance Bill, to provide for and limit borrowing by Local Bodies for-re-TOnue purposes.' strongly objects to the provisions 'of the Bill m the following•respects—Section 3, which prevents a local body from borrowing money from a corporation or persons by way of temporary loan in accordance with" Section 99 (1) of Municipal Corporations Act • 1920' ~ "That Section 3 (2) (o) should.be so amended aa to provide for such cases aa overdraft raised for matured loans, extraordinary expenditure such as j floods, «pidemi6, collapse of works, etc. _ "That, there should be power_to raise loans by special order without a poll unless demanded by 10 pec cent, of the ratepayers." Motor Vehicles BllL : . The Council then went on to consider the Motor Vehicles BilL - . The chairman said thai- trie-Govern-ment's object was. clearly to get as - much revenue as possible. YV heir it was known that all. boroughs ; and cities ot i'. the Dominion were practically cut out 'of tti"® revenue which-justly and ngntly to them,"the bodies concerned, naturally; would have objections, to >. •• make/ Th®.provisions.of the Bill werei -*iijust and inequitable BO far as the bodies were concerned.^ Cr. Hunter interposed t)hat the Go-. ■ Terament had taken,.good wire tb ne® that its own vehicles were exempted. , It-was pointed-out by several mem- • bers 'that the Bill meant a heavy tax on , tie motorist. Though a belonging to a oertairi district put in twothircla of. his -motoring' activities intuiat •dittriot, y«>t- the whole revenue .from u his activities would be taken away from, •■that-district. t , Several' speakers remarked .that the I Sill proposed to take away from the controlling local bodies the revenue justay • d\ie to them., y • ~ "; ■ C. Hunter moved: 'That the.prinv,-.. cipl© of all taxation for th© upkeep of roadways be levied on land values.' The motion wad not carried. After a lengthy discussion it was de- ' ded tp aphold the decisions arrived at by tharecent Municipal Conferanoe, " 7 on the motion of Cr. McELellar the foUowihg resolution differing slightly f ftoin that carried By the Auckland City '•Grancilj was adopted:—: ; v „ ■ *<That this Council approves and , :-eoWially supports an equitable' form of ' fcntinn- xghftther in the form of a tyre ; tax- or > manner, oil all motor vehicles, the revenue from such source t<> go to the national highway finance, • •anaanggests that tthe funds to provide the construction and maintenance of be provided frbmthe revenua obtained from- a tyre tax. on; motor '' JBehiolcs : and wbeel c tax on other ■ o.' 4t That the funds required for the oon- ■/ atatution .and maintenance of highways <■ be provided'by < means of a tyre wx on ,>Botor vehicles and a wheel tax on other v that an equitable, distribution • r «f sooh fundls be made- to all local bodies controlling higlhtvays, having refiard ito- ttenumberand volume ;of ;tanasc- thereon, provided that 'the dia.trflmtion of the.rund shall only be made to 3ocal.aathorities-wh.ose highways are .constructed.and maintained in accord-' Mine with ifca : standard laid down.by.the Board." The various principles of the recent Municipals Bodies Conference were •ffirmw, ; jrad it. was decided, that the • V>eal Bodies Financo.,' Motor -Vehicles, and Highways Bills should 'be confiider«d by a oonferenoe of representatives from tW.various local bodies in and - Wound Christchurdh, including the City ; aMfc Thursday week. v >:-r - • i - • - ■