Grey River Argus MONDAY, November 28, 1927. LOCAL BODY FINANCES.

Grey River Argus, 28 November 1927, Page 4

Grey River Argus MONDAY, November 28, 1927. LOCAL BODY FINANCES.

The local bodies of the Dominion, numbering 676, include 123 County and 119 borough councils, 41 harbour, 42 electric power, 47 hospital and 39 town boards, and the combined debts of these aggregated over six millions sterling equal to £42 15s per head, as at the end of the 1926 financial year. The annual charge on this gross debt is about three and a quarter millions, or more than £2 13s per head of the Dominion’s population. Certainly the National Debt is considerably _ more than twice as great, but it is noteworthy that in the past 45 years the ’ gross local body debt has grown by about fifty seven millions, and that in the past thirty years the net local body debt has increased by more than forty five millions. The State Advance Office has now loaned to local bodies about six and a-half millions, and the net debt to that office is over five and a-half millions. The increase in the indebtedness during the 1926 financial year was something like six millions in the gross, and five and a quarter millions net. The total charge has risen during the last thirty years by more than three and a quarter millions per annum. While the National Debt has been greatly augmented of course, during the last decade, the local body debt has increased at an even rate. Of the net total debt of fifty one and three quarter millions at the end of the 1926 financial year, Boroughs were responsible for half, and the Power Boards for more than a third of the remainder, or about eight and three quarter millions, while the Harbour Boards owed nearly ten millions. No doubt the Power Boards will soon overtake the Harbour Boards at their present rate of borrowing. The four years from 1929 to 1933 will sec about ten and a-half millions of the loans (apart from those to the Government) falling due, in the succeeding four years about seven millions mature, and then another ten and a-half millions will be due for repayment or conversion between 1939 and 1943; the bulk of these early maturing loans being those of boroughs, whereas the power loans mature to a greater extent during the succeeding 20 years. Of the total local body loans, well over half, or nearly 39 millions has been raised in the Dominion, and for over nine and a quarter millions the interest is 6 per cent., while 54 per cent., is being paid for five and a-half millions, and 51 per cent., for a similar proportion. The loans raised in Australia amount to four and a half millions, and those from the United Kingdom total over twelve! and a quarter millions. On nearly ! eleven and three quarter millions the interest is 6 per cent., while 61 per cent., is paid on two mil-1 lions, 51 per cent., on three and aj quarter millions 54 per cent., on’ seven and a half millions, 51 per

cent., on five and three-quarter millions, and 5 per cent., on eight and three quarter millions. As against the debts, the total assets are nine and three quarter millions in cash and fifty three and three-quarter millions in other forms. The taxation of the local bodies for the year 1925-27 amounted to about five and a-half millions, all but half a million coming from rates; while the total revenue was over twenty millions, two thirds being revenue and one third other receipts, and half the total, went to boroughs. The expenditure included wages amounting to £5,660,000 for 56,680 employees, including £2,965.670 for 14,363 borough employees, £930,428 for 9,599 countv employees £752.819 for 5792 Harbour Board employees, and £521,921 for 2050 Power Board employees. The figures combine to show that Governmental costs are growing at a rapid rate under the local as well as the general administration, but they also demonstrate that public enterprise and community obligation are extending in a proportionate degree. The necessity for revenue-producing resources, however,, is becoming more urgent as. time passes, and when the increasing demands for loan interest and repayment are presently to be encountered the local administrators will have to exercise their wits in making ends meet, because times are not likely to remain harder than they have been during the. generation which has seen the rise of the local body debt. The total public debt is nearing the two hundred million mark, and the total private mortgage debt is at least as great, so that the outlook is one which indicates an increase rather than otherwise in taxation.