Government’s Views On Local Finance Disputed

Press, Volume XCIX, Issue 29145, 4 March 1960, Page 12

Government’s Views On Local Finance Disputed

(New Zealand Press Association)

WELLINGTON, March 3. The Municipal Association today expressed disagreement with many of the views of the Government on the recommendations of the Royal Commission on Local Authority Finance. The conference went through the Government's views, as given by the Prime Minister (Mr Nash) in a circular, point by point and decided to raise several of the recommendations with the Government again.

The conference passed a resolution expressing “extreme disappointment” at the attitude of the Government to the financial problems of local bodies, as revealed in the report of the Royal Commission.

There was considerable discussion on the finding “that, the Government feels the fact that total rates represent a lower proportion of the national income today than in many past years is a fairly clear indication that the rate burden, though admittedly high, is not necessarily at a point where Government or other assistance is required.”

Mr T. K. S. Sidey (Dunedin) said that local authorities were having difficulty in financing work

out of rate revenue. The cost of borrowing was fantastic. If a local body borrowed £lOO,OOO a year, by the twelfth year the interest and repayment charges would be equivalent to the £lOO,OOO first borrowed. Mr F. J. Kitts, M.P. (Wellington) said Wellington was building up its loan indebtedness at the rate of £1,000,000 a year and the money was all for essential works.

Mr H. P. Smith (Christchurch) said it appeared from Mr Nash’s reply that local bodies could expect no help whatever to relieve the rate burden, except the reallocation of the National Roads Board subsridy. Mr D. M. Robinson (Auckland) said it seemed local bodies had been on the defensive in obtaining financial assistance. The motion to take the matter further with the Government was carried. Rate Exemptions Many speakers also disagreed with the Government’s view that, it did not feel in general there should be any radical departure from the present practice on exemptions from rate payment for Crown and other properties. The conference resolved to press for the implementation of recommendations of the Royal Commitfion that exemptions from rates on Crown and other properties should be substantially reduced. The Government’s view that there was no special reason why the Crown should provide a subsidy to local bodies on their expenditure on library services was also contested, and it was decided to raise this matter again. The conference decided by 103 votes to 40 to approach the Government again on the proposal for a further tax of 2d in the £ on all income to assist local bodies. The conference also decided to thank Mr Nash for making the Government’s views known to the conference.