PAYING THE PIPER.

Hawera & Normanby Star, Volume XLII, Issue XLII, 2 May 1922, Page 5

PAYING THE PIPER.

ABOUT THE ''ANTECEDENT 1IABILITY."

THE TASK OF THE LOCAjI.

BODIES

Local bodies throughout New Zealand are preparing accounts in accordance with the provisions of *■• the Local Bodies' Finance Act, which came into operation at, the beginning of this month. Many of them evidently are finding the task a rather unpleasant one, and requests are being made foi the amendment of the Act. It appears that there is no escape irom tjiw compilation of the information in any case, since the returns have to reach the Minister of Internal Affairs befoi*. the end of June, and failure to supply the returns will render each member ot an offending local body liable to a fine of £100. Parliament will not meet until the closing <lays of June. The provisions of the Act are more drastic than many of the local bodies seem to have realised when the legis-x lation was before Parliament last year. Every local authority is required to provide for the ordinary expenditure of any year out of the revenue of that year. Bank overdrafts may no longer be carried forward from year to year. Then there is a provision that local bodies may not borrow money in the future without legislative authority. The clauses that are causing the local bodies most concern at the present time relate to existing liabilities. Each local authority is to inform the Minister of the amount of .its bank overdraft on March 31 last, and of the amount then due to persons from whom money had been received on depost. The total of these two sums, less the amount of outstanding revenue for the financial year, is the "antecedent liability" that has been mentioned so frequently of late by Mayors and chairmen. Wellington's antecedent liability was stated by the Mayor on Thursday night to ,be about £350,000. The Act stipulates that the antecedent liability shall be extinguished either by loan or by seven equal annual instalments out of revenue. A 'ocal body may raise a loan to cover part of the debt and pay off the bal•*ncu in installment-.. Interest and charges in respect of the antecedent liabuitv Eave to be paid out of revenue until the debt is extinguished. The Net authorises the raising of loans and the imposition of snecial rates required to clear away the Hn.hil.tv