WAIROA COUNTY

Hawke's Bay Tribune, Volume XXIII, Issue 75, 10 March 1933, Page 7

WAIROA COUNTY

THE ALLEGED THREAT

HON. J. A. YOUNG'S REPLY. ASSISTING THE COUNCIL. By Telegraph—Prete Association. (Per Press Association.) parliament Buildings, March 10. A denial that he was adopting an unsympathetic attitude towards the difficulties of the Wairoa County Council in meeting its financial obligations was made by the Minister of Internal Affairs (the Hon. J. A. Young) in the House of Representatives this morning. He referred to a question asked earlier concerning a newspaper report which implied that the Government had threatened to put a receiver in charge of the county’s finances. Mr Young said that the report gave an entirely wrong impression and it was evident that either the County Council did not appreciate the facts or the report was incorrect. The council was in default in respect of interest payments to the Treasury State Advances Office and tho Public Trustee. As far as he knew other creditors had been paid. The Minister detailed amounts totalling some £7300 owing by the county to these departments. At March 31 last, he added, the county had a bank overdraft of £725, while unpaid accounts totalled £2400, and a further £9OOO was involved in respect of heavy traffic fees. The three departments fiad complained of the situation and he had written the council in terms t which no exception could be taken. It had been stated that the council would not have taken so much notice of the letter had it come from the head of a department, but coming from a Minister, who ought to know something of the worries of finance, it was an unthinkable action. Mr Young said he had had as much experience in local body affairs as anyone else, and he recently demonstrated his sympathy with local body difficulties in the action he had taken with reference to the Thames Harbour Board and the Matakaoa County Council. In his letter to the council he had merely asked what steps it proposed to take to meet the position, and he had made it clear that the alternative action of appointing a commissioner had been deferred pending some indication by the council as to its intentions. The council did not seem to realise the distinction between an agreement to appoint a commissioner and the appointment of a receiver. A commissioner would work in co-operation with the council, whose functions would continue. the commissioner merely acting in an advisory capacity and not taking over the council's responsibilities. Gn the other hand, if a commissioner were not appointed, bondholders might go to the Supreme Court and secure the appointment of a receiver, which would be very much worse for the county. Under a commissioner bondholders received any surplus from rates entitled to be levied, but a receiver superseded the council and the revenue from rates would be applied solely to pay bondholders without regard to administration.

In these circumstances it was difficult to understand the county’s attitude. The letter had been written in the interests of the county. It could not be'overlooked that the council had taken no steps whatever to levy special rates. However if the county would co-operate with the department tie latter would do all it could to assist. Earlier this morning the Leader of the Opposition, on behalf of Mr. D. W. Coleman (Gisborne), drew attention to the report that the Government had threatened to put a receiver in charge of the finances of the Wairoa County Council and asked whether the Minister of Finance would stay his hand until such time as representations could be fully made by the member for the district in conjunction with the chair- « man of the Wairoa County Council. The Bt. Hon. J. G. Coates said he understood that the matter was a longstanding one. To be frank, he said, he was not aware of the exact details, but he would consult the Minister of Internal Affairs and ascertain whether effect could be given to Mr. Holland’s request. Later Mr. Young made the •tatement reported above.