FUNDS FROM ART UNIONS

Press, Volume LXXXVI, Issue 26211, 7 September 1950, Page 8

FUNDS FROM ART UNIONS

ALLOCATION SYSTEM UNDER REVIEW MR BODKIN REPLIES TO QUESTION (New Zeaiana Press Association) WELLINGTON, September 6. Replying to a question by Mr T. H. AicCombs (Opposition, Lyttelton) in the House of Representatives today, the Minister of Internal Affairs (Mr W. A. Bodkin) said that a complete review of the administration and allocation of art union funds was now under way. “When the information is to hand, the situation will be reviewed, and it will then be possible to make a pronouncement on the subject,” said the Minister. M.r McCombs had asked what reductions were to be made in art union grants to mayors’ funds, and what alternative use would be made of the funds diverted. Mr McCombs, discussing the Minister’s reply, said it now appeared :hat the Minister wanted to get his hands on mayors’ funds. The only inference to be taken from a letter which had been circulated to all mayors was that their discretion in handling the funds was to be taken away. Mr McCombs said he wanted to make the strongest possible protest □gainst any interference with the discretionary powers that mayors had in the disbursement of relief funds. Reason tor Change Mr Bodkin said that the change of policy on the administration and allocation of art union funds and mayors’ funds resulted from an application from the chairman of a rural town board, asking for permission to divert the sum of £640 into a building iund. Mr Bodkin said his opinion was thai the building should be provided by the town board, and that charity money should not be used for such a purpose. He had found on investigation that the funds were not subject to Government audit, and in some cases no audit had been held at all. In some cases, substantial reserves had been established, and money had been diverted to work which., m his ipinion. should be carried out at the latepayers' expense from ordinary unds. the Minister continued. Some mayors had not replied to his request for information about the funds at their disposal, but when he had dll the information required, he would propose certain alterations to the present system. He would insist that al’ money should be subject to Government audit. Administration of Funds “It should not be left to a mayor to distribute largesse, and in some cases I have a shrewd suspicion that that is what has happened.’ said Mr Bodkin He considered that mayors’ funds should be administered by committees. There seemed to be a weakness in the system of allocating funds, in that some local bodies received more in comparison with others. Mr C. L. Carr (Opposition, Timaru) said that se me people would be gratified with the steps the Minister proosed. There were cases of largesse being distributed, rather than social amenities to those who required help. Mr S. W. Smith (Government, Hobson) said he had brought the matter to the Minister's notice. Money was paid into mayors' relief funds, irrespective of whether the funds were used. The particular amount in question (£640) had been built up entirely by money paid into a distress fund Surely local bodies should have to account for such funds. It was their elementary duty to see that whatevei money was voted for any particular purpose was needed and applied. The Minister had taken a stand which was iong overdue, and whatever he decided would not mean that any case of genuine distress would not be relieved.

“Snooping” Alleged Mr A. E. Armstrong (Opposition, Napier) said that Mr Smith had been “snooping” into the internal affairs of some local body and reporting on it to the Minister.

Mr Bodkin: At the request of the local body. Mr Armstrong said that in the case of Napier, every penny received was well spent on cases’ of real need.

Mr R. M. Macfarlane (Opposition, Christchurch Central) said there was certainly no loose control in Christchurch of funds received from art unions. All expenditure was controlled through the city treasury. If there were a case where that was not done the Minister had some justification in requiring the funds to be spent through the proper administrative channels. He hoped, however, that there was no suggestion that the department should ?heck actual payments to individuals Mr Bodkin: I want to get it as far as possible on a population basis; that is all.