AMALGAMATION OF LOCAL BODIES

Dominion, Volume 31, Issue 269, 10 August 1938, Page 8

AMALGAMATION OF LOCAL BODIES

Counties Give Evidence To Select Committee Yesterday COMMISSION WANTED FOR INQUIRY Broad Principles Of Local Government Thought In Danger

The Local Government (Amalgamation Schemes) Bill did not completely visualise the intricacies’of the proposed change-over, because it had been formulated “off the map,” stated the New Zealand Counties’ Association in its evidence yesterday to the J. arliamentary Select Committee on the Bill. A certain amount or amalgamation could be carried out with advantage to the Dominion, but not amalgamation to the wide extent suggested by the Bi . No plan of amalgamation, it submitted, should be formulated until an impartial commission had made a complete investigation iiito the numerous anomalies existing in local government and into the implications of interwoven State activities, and had provided solutions.

The Association’s evidence was submitted by the president, Mr. C. J. Talbot, who had with him a past president, Mr. A. E. Jull, and the secretary. Colonel J. Bow. Also present,' representing the Taranaki Local Bodies’ Association, were Messrs. J. B. Murdoch, S. Vickers and W. A. SheaL Mr. D. W. Coleman (Government, Gisborne) presided. Other members of the committee present were: The Minister of Internal Affairs, Hon. W. E. Parry; Hon W. E. Barnard (Government, Napier); Messrs W. T. Anderton (Government, Eden); C. M. Williams (Government, Kaiapoi); J ’ W. Munro (Government, Dunedin North) ; H. G. Dickie (Opposition, Patea). Counties’ Fears.

Fears which the Association said it felt were dominant among counties were: , , , That amalgamation of local bodies was another step towards bureaucratic control of the county system, and another nail in the coffin of local body control. During the past 18 months the State had carried out a policy of peaceful penetration into several phases of local body activities. That the process of amalgamation could not be satisiied unless the coalescing Of policies and ideas gave promise of being harmonious. During the past 60 years, counties had developed their own individual policies and ideas. Experience had shown that even minor internal mergers were not easily effected; they might come in time, but they could not be forced. That 10c... body reform was being unduly hurried at the expense of .insufficient information filtering through to counties, so that at the moment they were unable to size up the repercussions involved. That amalgamation would mean either an increase in expenditure in a newly-created area, or a curtailment of services that were at present being given to ratepayers. That the creation of large, unwieldy areas must mean an increased cost to the ratepayers without a'corresponding increase in efficiency. Large counties had not necessarily the lowest administrative costs. As the areas of amalgamated counties increased, the overhead costs would soar to uneconomic heights. ... If the number of councillors in a new area was to be restricted to l-» their time spent in supervision and contact would have to be greatly extended. As most county councillors were farmers, they would probably be unwilling to spend so much more extra time on county work without some compensation, and the association could foresee a danger of professional representation being evolved. That parts of the enlarged counties far removed from the new area centre would receive scant attention from the newly-created councils. That the process of reorganisation would be a lengthy, laborious and costly task, and there would be considerable disorganisation among the smaller counties affected. That the individual ratepayer would have less say in the control of the expenditure for which be was rated. Cost of Local Bodies. An analysis of the number of rural local authorities showed that too much stress could be placed on their number, 325, and their so-called excessive costs of administration, the association said. Of the 325 bodies, 125 were counties and 200 secondary authorities. The secondary authorities employed administrative staffs totalling 237, at an annual cost of £22,151, which was not excessive. However, the association considered that some measure of internal amalgamation of these secondary rural authorities with existing county councils should form part of the major plan. In some localities, also, amalgamation of some counties might be economically desirable, but the association could not agree to a reduction to anything like 40 counties, as had been suggested; It felt that medium-sized comities, say from 800 to 1000 square miles, would prove more economical and more efficient than those greatly in excess, or those much less. The average area of the existing 125 counties was 826 square miles. At present smaller counties were on the defensive and had to prove their case for their separate existence, whereas the onus of proving amalgamation advantageous in an area should rest on those formulating the scheme. Local bodies should administer those services for which persons in a particular locality had particular need, for which they contributed at least a share of the costs in rates, and for which other citizens of the country were not directly levied The relationship between central and local governments should be one of co-operation. “Generally speaking,’’ the association said, “the framework of local government is considered adequate to discharge all existing functions of county councils, provided it is allowed, and even assisted, to develop to meet modern requirements without State encroachment. It is considered Unit the national Government has ample supervision and control nuder the authority of the Controller-General.” Rating Difficulty. A difficulty in the amalgamation of counties rating on different bases was that either one or other system would have to be adopted in the new area. This would have the effect in many cases of reducing the rates in some counties in the new area at the expense of ratepayers in the other counties of the area, and would probably lead to a’ reversion to riding finance, with each amalgamated county acting as a riding in the new area. The association also felt strongly

that there was urgent need for a commission to investigate the most equitable method of uniting counties with varying loan burdens into one area. Indebtedness of counties ranged from £255,435 in one case, to nothing in another. There was a wide diversity of opinion regarding the feasibility of. the absorption of minor local bodies in counties’ areas. Only a minute examination of the district concerned by a competent commission could unrave] the tangled opinions.