COSTS OF LOCAL GOVERNMENT.

Press, Volume LXIX, Issue 20904, 11 July 1933, Page 10

COSTS OF LOCAL GOVERNMENT.

COMPREHENSIVE REPORT. MEETING OF INVESTIGATING COMMITTEE. A further stage in the enquiry into the advantages of amalgamating local government areas in the Christchurch district was reached yesterday afternoon, when the committee of local body representatives appointed to make the investigation had before it an exhaustive report on the finances of various authorities. The statenr \ was prepared by Mr James Anderson, formerly city treasurer. Cr. M. E. Lyons presided. Also present were Cr. J. W. Beanland (Christchurch City Council), and Messrs E. H. Andrews and W. Hayward (Christchurch Tramway Board), S. C. Bingham (Christchurch Drainage Board), H. Kitson (Christchurch Domains Board), C. G. McKellar (Riccarton Borough Council), and A. S. Taylor. Mr Anderson was occupied for several months on the preparation of the statement, which is among the most complete of its kind relating to the finances of local bodies in the Christchurch area ever compiled. In view of the wealth of detail in the statement, it was decided to defer consideration of the whole question of local body amalgamation viewed from the financial aspect until the next meeting of the committee to be held in a fortnight. Mr Anderson's statement dealt, among other things, with the revenue and expenditure, the income from rates, and administration and debt costs of the city, the three boroughs of Riccarton, New Brighton, and Sumner, and the three counties of Heathcote. Waimairi, and Paparua. Rates and Highways Cost. In a memorandum accompanying his report Mr Anderson said that had the districts referred to been part of the city in 1931-32 the revenue from the Government subsidy on rates, totalling £6827, and the highways subsidies, amounting to £13,158. would have been lost unless the last-named figure had been compensated by an increase in the motor spirits tax allocated to the city. The 12J per cent, rebate allowed to county ratepayers, totalling £7OOO, would also have been lost. Cr. Lyons said the committee was deeply indebted to Mr Anderson for the exhaustive work he had undertaken in compiling his comparative statement. This statement would be of great value to anyone interested in the question of amalgamation, and in that respect Mr Anderson had performed a real community service. Everyone knew that Mr Anderson had been asked to undertake a heavy task, but it had not been fully appreciated just how exhaustively it would be necessary for him to search the financial affairs of local bodies. It was stated by Cr. Lyons that the 12A per cent, subsidy on local bodies'" rates had been intended to relieve farmers, but actually it had been found that money had gone to wealthy urban areas in counties, which was certainly not intended when Parliament passed the legislation. Benefit to Two Counties. Cr. Beanland: Cashmere Hills for instance. Mr Lyons: And portions of Fendalton. The main highways subsidy is a very important item and one to which we will have to give some attention. The meeting passed a resolution moved by Cr. Lyons expressing appreciation of the months of work by Mr Anderson in compiling his statement, a document characterised by the chairman as a mine of information. Mr Kitson said Mr Anderson had completed a Herculean task, for which everyone was deeply appreciative. (Applause.) The meeting was adjourned for a fortnight to enable members to study the figures prepared by Mr Anderson before attempting to discuss them.