THE PRESENT CRISIS.

Horowhenua Chronicle, 19 February 1931, Page 6

THE PRESENT CRISIS.

COUNTY COUNCIL’S ATTITUDE. SUGGESTIONS FROM ASSOCIATED BODIES FORMALLY RECEIVED. RELIANCE ON THE CENTRAL EXECUTIVE. The receipt of circulars from three other counties, relative to the country’s economic position, at the meeting of the Horowhenua County Council on Saturday, concided with the publication in the Press of the Prime Minister’s statement on the general situation and his proposals towards remedying it. Among the suggestions contained in the correspondence was one for the calling of a conference of counties’ representatives and another for the postponement of capital expenditure on new works, but neither of these was supported by the Council, the communications being merely “received,” after some discussion. RATHER PROPHETIC. The concern of the Westland County Council at the general financial outlook for New Zealand was recently expressed in the form of a resolution, a copy of which in circular form was received. The resolution was in the following form: —“That the present economic condition of the Dominion demands the immediate attention of the Government of the day and that a respectful memorandum be sent to the Prime Minister urging Cabinet to —(1) Seriously consider the necessity of reducing the honoraria of all Cabinet Ministers, members of Parliament and civil servanrts whose salaries exceed £350 per annum; (2) that special attention be directed to the ever-in-creasing cost of Government, and that a genuine attempt be made to curtail the departmental expenditure now going on in the Dominion. ’ ’ A covering letter solicited support for the resolution in-order to emphasise to the Government the general feeling on the subject indicated throughout the Dominion. SUGGESTION FOR A CONFERENCE A conference of county representatives early next financial year was advocated by the Waitaki County Council, Oamaru, which urged the need for such a meeting to discuss such matters as de-rating, legislation relating to maximum speed limits, hospital rating, and the cost of education. In soliciting support for the suggestion, the Waitaki Council contended that the farming community generally was vitally concerned with the matters outlined, and that concerted action on the part of the county councils, expressed through their representatives at a conference, was essential. MAINTENANCE BEFORE CONSTRUCTION. Another series of resolutions having their origin in the prevailing economic conditions was forwarded by the Awatere County Council, Seddon, as under: — “That all capital expenditure on new works not yet commenced be postponed until normal times return, and the Main Highways Board apportion the money thus saved as an increased subsidy to county councils for the purpose of road maintenance instead. “That in lieu of the present system, the funds of the Main Highways Board be diverted and paid direct to local authorities in proportion to the amount of rates collected (or on valuation) with a view to tremendously reducing the main highways costs of administration, and also avoiding extravagance entailed by unnecessary work. “That the Government be urged to seriously consider the necessity of reducing the honoraria of all Cabinet Ministers, members of Parliament, and heads of departments, and review the nvhole of the public, service generally, with a view to effecting economies and reducing expenditure in all directions.” A MATTER OF EXPENSE. The Chairman (Mr G. A. Monk), at the outset, referred to the fact that proposals for economies, including reduction of salaries, were contained in the Prime Minister’s statement published that morning. As to the question of calling a counties’ conference, lie remarked that apparently the Waitaki Council did not understand that to hold a conference like that would cost about £SOO and the counties would have to pay it. The Awatere Council suggested that all capital expenditure on new works be postponed. There was an appeal in the Press that morning on a proposal by the Government to further appropriate some of the highway funds for the -consolidated fund. Cr. Gimblett: The biggest danger we have. PURPOSE OF HIGHWAY FUND. Continuing, the Chairman said that, as far as this Council was concerned, whether under the head of works to be commenced or works in hand, it would be economical for them to be finished. Therefore he did, not, see that it could altogether support the proposal from the Awatere Council. The highway fund should be expended on the roads, whether for capital expenditure or maintenance. FUNCTIONING OF THE COUNTIES ASSOCIATION. Cr. Gimblett did not agree with the Chairman’s opposition to the suggestion that a counties conference be called. He admitted that to call the whole of the Counties’ Association together would be wasteful expenditure; but that association had an executive body. The Association met last July; since then there had been nothing in the Press or before this Council to indicate that the executive was in existence. The Chairman: It has met two or three times since then. Cr. 'Gimblett said that, while it would not lie businesslike to call the whole association together, the executive bodies could meet, and could place the position before the Government in a more pronounced manner than had been done hitherto. The Chairman stated that the whole of the business and requests of the July conference had been placed before the Government. The executive could only keep on representing the matter as the session came round. Cr. Gimblett: Has the executive pressed on members of Cabinet those very important questions that are embodied in those three letters? Has the

man on the land or the Council any knowledge of what that executive has been doing? The counties are not pressing the Government for relief as they should to-day. The Chairman; Sometimes, I suppose we make statements and don’t get answers. You suggest that you know nothing about what the executive has done. The inference is that, as a member of the executive, I should report fully to the Council as to what the executive is doing, but I am not called on to do that. Reports come from the president of the conference. You probably get more information than most counties as to what has been done. Since last July, we have had two or three meetings of the executive and dealt with matters that were directly referred from the conference, also those matters that are brought directly before the executive from counties. If you have a complaint, it is quite in the sphere of the Council to pass a resolution and send it on. The executive meets quarterly and a committee is set up and the matter represented to. Cabinet. We cannot do more than that. The president of the Association is a member of Parliament. At our last executive meeting, I impressed on him that I believed we had for once a truly county representative as a member of Parliament; that he should lay all the information he could —of which he has a vast fund —before Parliament; and I believe he will do that. DIVERSION OF PETROL TAX REVENUE. The Chairman reminded members that a suggestion was formerly made for an increased petrol tax in the interests of de-rating, that it was duly imposed, but that the money was seized by the Government for the purpose of paying the highways subsidy originally paid' out of the consolidated fund. "We have protested against it,” he said, “and cannot do more than that.” HOSPITAL LEVIES. Coming to the question of hospital rating, Mr Monk said he had helped to frame the motibn that a conference be called of the various local bodies, the Hospital Boards’ Association and of the Health Department, to endeavour to make the system of levies more equitable. That conference had not yet been called. There had been a promise from a former Minister of Health that that conference would be held, but they had not had the same promise from the present Minister. EDUCATION. The cost of education had not come before the counties’ conference, the Chairman added in answer to a question. “The executive are alive to the wants of the counties,” he continued, “and are doing their best to represent to the Cabinet Ministers and the Government our requests. Not a very big percentage becomes law, but some good comes out of our work. The present Government did. very little last session except to take away ,our moiicv, ’ ’ ‘ NEARLY ALL HARD UP. “I don’t think that, at the present juncture, we should go too far,” said Cr. Jensen. It seemed that nearly everyone was hard up, and he did not see how the Government could materially assist in the Avay of de-rating, It would have to take over local bodies’ loans, in order to give them any benefit, and he did not believe that the Government was in a position to do this. One thing he felt was that the Government would perhaps be only too willing to impose a heavy benzine tax. Until he knew what benefit the counties were likely to receive from this, he would not press for more taxation. Cr. Catley was of opinion that the question of going on with any public works should be left to the judgment of the counties concerned. The Chairman: Probably these people have done very little of it. The communications were formally received, on the motion of Cr. Ryder, seconded by Cr. Jensen.