BAD TIME TO BUY

Hauraki Plains Gazette, Volume 55, Issue 32707, 1 May 1946, Page 7

BAD TIME TO BUY

REPORT BY THE CLERK SPEND MONEY IN HAND RISE IN RATES OPPOSED “In my report on April 3 presented to your meeting of April 10, I made a statement that this council was becoming ‘work bound’ and recommended that serious consideration be given to having a clean up before undertaking further commitments. I understand discussion was deferred pending my return to duty and I thank the council for taking that course. .This recommendation was made after twelve months of study not only of the council’s position, but of current possible developments during the events in local body affairs and of current year which may govern the policy of all local bodies in this and succeeding years,” stated the report of the county clerk, Mr E. A. Mahoney, presented to a special meeting of the Hauraki Plains County Council when the estimates for 1946-47 were considered. The report continued: — “It will be conceded that the present is a bad time to buy or to embark on expenditure on a lavish scale. Neither is it a sound policy to levy rates for works which will not be carried out for several years, to come. Neither is it sound to apply for and obtain subsidies for works for which no provision has, been; made in the council’s own estimates while other equally important works have been approved by the Highways IBoard 1 , the council’s share raised by rate and the works deferred for varying reasons. Cash In Hand “This council has works and objects to which it is committed amounting in cost to £1'8,74'5. This commitment was made prior to or soon after the commencement of the war and against it the council has almost £15,0'00 .in cash and subsidies . The levy of £5,60'0i for Pipiroa bridge has been omitted on both sides. Add to commitments the maintenance of highways and roads for the current year and a total of £41^719tO l is, made for road works. This is one reason why I recommend that there should be a construction of these works so that their completion will at least be in sight'before a rate is made for any further loading works. “If the council considers some of the commitments should be postponed in favour of more urgent works, well and good postpone them and borrow the accumulated funds without piling up more. One further factor on road works. One resealing job just commenced, has been delayed because the .quarry could not produce chips in .sufficient quantities. I will assert positively that the quarry will be unable to produce sufficient -metal of all grades requirred to complete in one year the programme stated above. I think the engineer* will agree on this point. Must Stick To Estimates “In submitting estimates last year and in reports, to meetings since, I have stressed that the estimates, once made should be adhered to. If, when they ; are submitted, the council considers any item is insufficient, then is the time to. discuss and amend it, but having adopted and, published the estimates, there can be no justification for any one or more items being overexpended except in very exceptional circumstances. Even then the person responsible for the finances and who will be called to account for any financial debacle should at least be consulted as to ways and means, but this has. seldom been the case. There is still less justification for introducing any work which has not .even been included in any estimates. An example of the latter in the past year .was. the Willow drain bridge and until the writer was asked l to call ■tenders for construction, he was not fully cognisant of the fact that a consulting engineer had- been employed to prepare plans, that plans and specifications had been submitted and. approved by the Main Highways Board for a work for which the council had no funds. It is beside the point that .the work was not done in the past financial year. Prices Will Not Rise “It is inconceivable that costs of plant and reading material will increase further now that war risks are over and shipping facilities are better. Already there are

slight signs of a downward trend. I am optimistic enough to hope for considerable decrease in the next three years, particularly in

bitumen, petrol, oil and machinery. The Parliamentary Committee appointed’ to investigate local government reform has lodged its report, which will be considered by Parliament this year. Among recommendations likely to affect counties are those concerning hospital rating, subsidy for road works other than main highways, and perhaps further subsidy for works on highways. Very substantial relief in hospital rating must come, otherwise there will in my opinion, be every justification for 120 counties as well as cities and boroughs going ’Monganui.’ Wait and See Policy “For the reasons stated in the two proceeding paragraphs, I feel justified in recommending a ‘wait and see’ policy. The council is at pre sent in a sound financial position. To preserve this will entail very careful watching and any rushing into new works at the present time with consequent steep rise in general rate might have unpleasant repercussions. Rather, I think, the council should await developments even though it may have to budget for a deficit for one or perhaps two years. “At this point I will make a statement which will probably astound the council. During the past two years a number of projects have been discussed and urged. Recommendations have been made by committees and adopted by the council. Were these all put into effect in the next two years as seemed to be the intention, a general rate to the council’s full legal capacity would be required nearly Bd. in the £ or double the rate for the last three years plus a separate hospital rate for whatever the levy happened to be. Purchase of Truck “I dio recommend that the council plan its works and purchases ahead and recommended this years ago without' effect, in 1'935: to be exact. By doing this a certain amount could be included in each year’s estimates in addition to ordinary maintenance. “At the March meeting of the council I advised against immediate authorisation of the purchase of a further metal truck until the financial position could', be reviewed. It was urged that such a purchase would be a good business proposition for the council. I have still to be convinced that it would be. Top heaviness in plant has spelt bankruptcy to many private concerns. “I am not in any way questioning the engineer’s right to say what he considers desirable in the way of plant. I do question the immediate acceptance of his recommendations before ways and means of putting themi into effect have been investigated. My part is to advise the council whether it can be done and I cannot do that offhand at a meeting. Housing of Equipment ‘“No . business concern, farmer or other private individual can buy anything, however desirable or good a proposition it may appear to be in the long run, unless they have the means to purchase it either by cash or on deferred payments. If they have the cash alright. If not circumstances often catch up on them before they have even paid for their purchase. In this council’s case the enlargement of plant will involve a series of other things which simply cannot be met except piecemeal, i.e. accommodation for plant and drivers, workshop, mechanic, stocks of spare parts, in other word's thousands of l pounds, which it would be suicidal to try and find at present. Add to this a continuous renewal of each item. “My recommendation is that a hard line be drawn now and that the council be satisfied, with periodic renewal of its present plant; which it will find to be crushing enough and leave any surplus work to private enterprise. It may be urged’ that private trucks are not available, but here again I have reason to think otherwise. “Before proceeding with the estimates proper for this year, I would like to state that the foregoing very frank statements are made with no motives beyond the interests of the council and ratepayers and the fact that the clerk and treasurer is in the ultimate responsible for every phase of local body administration. Unless he is frank in his opinions and advice he is rightly made the scapegoat if things go wrong. This has been amply demonstrated in more than one local body.”