CITY COUNCIL FUNDS

Press, Volume LXXXIV, Issue 25554, 23 July 1948, Page 8

CITY COUNCIL FUNDS

POWERS OF TRANSFER LOST

BILL TO REPEAL ACT PASSED IN 1946

(From Our Parliamentary Reporter.) WELLINGTON. July 22. The Christchurch City Empowering Act 1946 Repeal Bill was introduced in the House of Representatives this afternoon by Mr R. M. Macfarlane (Government, Christchurch Central). The City Council sponsored the 1946 act with the object of enabling the council to borrow on terms and conditions to be imposed by the Local Government Loans Board amounts which had been set aside for the renewal and depreciation funds of the trading departments operated by the council.

It was felt by the council that as there was statutory authority for such funds to be invested in loans raised by other local bodies it was also logical that authority should be given to lend such funds to the council’s general account. Officers of the Treasury were interviewed by a representative of the council, who reported that Treasury officials appeared to concur in the proposal. This opinion subsequently proved to be erroneous.

The act was framed to give the council these powers, but was amended. The effect of the amendment was not only to eliminate the power which the council sought but also to eliminate the power which the council, in common with all other municipalities, already had of transferring surplus funds to its general account.

The Local Government Loans Board has now advised that before the council can transfer funds under section 129 of the Municipal Corporations Act it must, unless special statutory authority exists, take a poll of ratepayers.

The council wished to borrow from its sinking funds, renewal reserve, and depreciation reserve, but. as the 1946 act did not give power to do so. the council abandoned any idea of seeking such power, but merely asked for restoration of the authority which, jt had before the passing of the 1946 act. It was with that object in view that the bill introduced by Mr Macfarlane this afternoon was framed. DRAINAGE BOARD MEMBERSHIP PROVISION FOR SEAT FOR SUMNER (From Our Parliamentary Reporter.) WELLINGTON, July 22. Power for Sumner to be represented on the Christchurch Drainage Board Is given in the Christchurch District Drainage Amendment Bill, which was passed by the Housp of Representatives. Mr R. M. Macfarlane (Government, Christchurch Central), who was in charge of the bill, said that it was necessary to give Sumner a seat on the board, membership of which would be increased from 12 to 13. Mr S. G. Holland, as member for Fendalton, gave the measure warm support.