The Star. WEDNESDAY, MAY 26, 1880. LOCAL GOVERNMENT.

Hawera & Normanby Star, Volume I, Issue 13, 26 May 1880, Page 2

The Star. WEDNESDAY, MAY 26, 1880. LOCAL GOVERNMENT.

Some time ago the following circular was sent round to all the local bodies in New Zealand : — " I have the honor, by direction of the Colonial Treasurer, to transmit to you the enclosed form, in which you are requested to furnish the information required under section 32 of the Financial Arrangements Act, 1876. At the same time lam to bring under your notice the intention expressed by Government last session to discontinue the payment of subsidies after the expiration of the then financial period — a proposal which met with the approval of Parliament. While, therefore, a form is sent to you as heretofore, to enable you to supply the information required by law to be furnished to the Treasury, it is not to be taken as an indication that provision will be made during the approaching session for the payment of any subsidy to your district. — James 0. Gavin, Secretary to the Treasury." The document did not create so much sm-prise as might reasonably have been expected amongst the local bodies. Nearly every intelligent man in the colony has been looking forward to something of the kind, although few persons anticipated that the subsidies would be withdrawn for some time to come. The public debt of the colony has reached, such a height that the taxation, which is already very heavy — amounting, according to some calculations, to no less than one-sixth of the average yearly income of a farmer who is posseseed of 300 acres of land — would have to be still further increased, were the subsidies to local bodies continued. The public creditor will have to be paid at all hazards, and when the annual interest and sinking fund, and the ordinary cost of governing the colony, is taken out of the yearly revenue, there will not be muoh money left in the Treasurer's hands to distribute amongst the local bodies. Whilst readily admitting all this, we must protest strongly against leaving the local bodies entirely to their own resources. It will simply mean ruin to many of them. Thickly-populated places will not suffer much, and it will be as easy for them to pay taxation directly to the local governing bodies, as indirectly to the Treasury. But what is to become of sparsely-populated districts r 1 Can they pay rates and taxes — and indirectly contribute to the general revenue of the colony through the Custom-house — to such an extent as to ue able to make new roads and bridges, and to maintain

those already constructed ? Undoubtedly, they cannot. What will the Government give them instead of the subsidies ? Last session Major Atkinson stated in the House of Representatives that the Government did not intend any longer to trust to the Land Fund for the purposes of ordinary revenue. That was a wise step, because the revpnue to be derived from land is of such a fluctuating character that it cannot be depended upon to any re-

liable extent. As the Government have decided upon withdrawing the subsidies from the local bodies, we see no other course left but to give them the proceeds of the land sales, or, at all events, a very large proportion of the amount. Either this will have to be done, or else some of the local bodies must cease to exist. The whole system of local government will have to undergo a complete change. Circumlocution will have to be done away with, and the counties will have to give place to the road boards, with more extended powers, or the road boards will have to merge into the counties. Mr. Ormond, who " fathered " the present Local Government Act, admitted last year that something of the kind would have to be done. The sooner the difficulty is faced the better.

With the impending withdrawal of the subsidies, it is little to be wondered at that candidates are not coming forward in large numbers for the seats vacant in the Eoad Board or Town Board. The election of seven members to the former body will take place on Saturday, the sth June; and three members will have to be elected, on the 9th June, to the Town Board, to fill the places vacated by Messrs. King, Duffh-l, and Cockburn. So far as we can learn, there is no sign of opposition, and it is probable that the retiring members will be re-elected to both bodies. Mr. Hunter, the chairman of the Eoad Board, appears disinclined to come forward again, but as the members from all sides of the district are anxious to see him back in his old position, it is to be hoped that he will accede to what appears to be the general wish. Economy will be more than ever required, and as Mr. Hunter will be unlikely to require much for his own particular district, he will be able to hold the scales impartially between those who do. The question of making Hawera into a borough should engage the attention of the Town Board, and we have heard, with pleasure, that one of the retiring members intends, if re-elected, to ask for a committee to inquire into the matter. There is but little chance of Town Boards existing, if the subsidies are withdrawn. The sooner, therefore, they can be made into boroughs the better. If Normanby could be induced to join with Hawera, and so form one strong municipal body, any difficulties that exist might be easily got over, so far as an amalgamation of these towns is concerned.

[Since the above was put in type, the nominations for the Road Board have been sent in, and as Mr Hunter's name is amongst the seven who have been returned unopposed, it is thought that he may be prevailed, upon to retain his former position as chairman.]