COUNTY SUBSIDIES

Press, Volume LX, Issue 18187, 25 September 1924, Page 9

COUNTY SUBSIDIES

SOUTHLAND WANTS INCREASE. CARE IN LOCAL EXPENDITURE URGED. (p?.ES9 association telzgsaji.; WELLINGTON. September 2-i. The House of Representatives had before it to-day the report of the A to L. Committee on the petition of the Southland County Council for an increased subsidy on the rates collected i:i the county. The committee made no recommendation, as the matter vras

one of policy. Mr de la Perrelle moved that the report be referred back to the committc-.' for a definite recommendation. Tho Hon. J. A. Hanan seconded the motion/

The Hon. J. G. Coates (Minister of Public Works) said the matter hjid been before the House time after time, and no Government had been able to solve the problem. If r.ny Government brought down a motion for the amalgamation of local bodies it would meet with very considerable opposition, since local bodies themselves were at variance on the subjpet. Southland County was one of the lowest, rated counties in New Zealand, and one of the most ofneieiitlv administered, and was in a position to meet most of its requirements out of revenue. The Minister admitted that the present system was not satisfactory. It' the subsidy were increased, Southland, for example, would immediately reduce its rate. While something might be done by having a graduated scale" of subsidies, he thought that the principle of District Councils, as envisaged in the Highways Board scheme, would be a step in the right direction. The subsidy should be based on the rate levied. Mr 11. E. Holland said the present system was not as equitable as it might be, but one thing that must be remembered was the position of undeveloped districts. These must get i higher rate of subsidy, and to endorse tho Southland petition would be to overlook the needs of poorer counties. They would never get far from the present position until counties were given wider powers of government. Southland Too Big. The Hon. G, J. Anderson said Southland had over IGOO miles of metalled roads, to maintain, and nearly three times as many as tho next largest county in New Zealand. lie had tried years ago to get the county divided jnto two, and he believed that some of those who opposed tho proposal now regrettod having done' so. Tho county was wodded to a policy of working only on rates, whereas if it had constructed roads out of loans in places such as Waikawa, it would have aided settlement and produced a, greater revenue. If Southland was divided into three counties it would ovoreopie its difficulties. Mr Maasoy agreed that it would be a good thing it' committees did refer to matters of policy in their reports, but enatom forbade it. Local body government was a matter which used to be annually before tho House, but nothing was done to remedy matters. The position now wag better than it used to be. Many smaller J.jeal bodies, such as Road Boards, had disappeared, and counties were administering their affairs economically and woU." I* anything were done for Southland, such as was asked for, then similar treatment would have to be accorded-to all other districts. Something better than existed at present should be provided to assist those districts which were in, urgent need of special treatment for development;!. The'report was referred back to the committee ou the voices.

PRIME MINISTER'S WARNING. (JftOIAL TO "THE TEIM.") In his speech, Mr Massey warned the House that tho expenses of locul government wore going up tremendous, ly. and that tho burden iu the future wa? going to be heavier on the loeal authority" than on the Government. When they found land rated as highly as it was in some cases, the burden was going to be heavy for the settlers to carry. With tho advent of the motor vehicle there had come changes. It had assisted in production, but there was more in it than that. The trouble was that it had not decreased the cost of production, and had not increased the price of the articles that we produced. „ . . .. . Ho was strongly of opinion that greater earo should be taken in regard to the expenditure of local bodies than had been taken in the past. As_ to the question of larger subsidies, if they agreed to that they must find more raonev, and ho did not know how they were'to do that unloss they increased taxation. And in that respect we were carrying just as much a 3 we could carry, and a great deal more than we ought to carry. People had got into tho habit now of going to the Government for everything they required. The exception was when'they tried to help themselves. All they thought of was getting some money out of the Goverumont. Subsidies in the first rlace should be in proportion to the rates collected, and then in proportion to the ability of the district to pav in accordance with its requirements. There were places where little had been done to open up the country with roads.