BULLER COUNTY

Grey River Argus, 23 November 1944, Page 2

BULLER COUNTY

State of Finances ACTION OF GOVERNMENT. WELLINGTON, November 21. The action being taken by the Government to put the finances of the Buller County Council on a sound basis is reviewed in an explanatory memorandum issued with the Local Legislation Bill which was introduced in the House of Representatives today. The council has got into financial difficulties because of the inadequacy of revenue to meet the high cost of maintaining services. A clause in the Bill authorises the council to capitalise a sum of £20.000. winch is the bulk of certain liabilities of the council in excess of the limits prescribed bv the Local Bodies Finance Act. and to repay the amount bv annual instalments of £2OOO or more.

"The position is that through certain circumstances beyond the control of the Buller County. Council, the council has got into financial difficulties,’’ says the memorandum. “The reason for the difficulties is known to the Government, and at the present time investigations are being made with a view to determining a more permanent solution to the council’s financial troubles. This, however, is not a simple matter, and it may take some time to bring about a permanent solution. In the meantime the Government has placed the finances of the council under the control of the Treasury and Internal Affairs Departments with a view to those departments' reviewing the estimates of revenue and expenditure each year, and generally determining what methods should be employed in bringing about financial equilibrium each year. “Up till March 31, 1944. the council had accumulated excess liabilities to the extent of £22.810. With liabily ties such as this remaining it would be impossible for the council to restore financial equilibrium, or to continue to carry on. Consultations have taken place with the council’s bankers. who have agreed to capitalise this amount and secure repayment over a' period of 10 years. It is necessary that this be done before any scheme can be worked out towards adequately placing the county on a sound financial basis. _ Legislation is necessary to enable this capitalisation of liabilities to be effected, and this is the primary purpose of the clause.’’ KUMARABOROUGH. A similar clause is provided with respect to the Kumara Borough Council " which has incurred liabilities in excess of the limits prescribed to the extent of £414. According to the memorandum, the council s indebtedness is due to the fact that when the borough water supplv system was recently, overhauled, the renovation of the existing pipe lines, as well as extensions, were found to be necessary, though it had not been anticipated when it was decided to do the work out of revenue. Because of the council’s' limited revenue, it is not possible for" the outstanding liabilities to be met during the current year. The Bill therefore proposes that the council should borrow by way of overdraft £4OO. to be repaid by five annual instalments.