COUNTY FINANCE

Hauraki Plains Gazette, Volume 60, Issue 4350, 1 November 1950, Page 10

COUNTY FINANCE

ADDRESS BY MR LUCAS

POSITION EXPLAINED

COROMANDEL CHAMBER MEETS

The October meeting of the Coromandel Chamber of Commerce was held in the school on Thursday, October 26, when Mr A. S. Tonkin presided.

A welcome was exterided to Mr J. H. Lucas, county clerk, who was present at the invitation of the chairman to discuss local body- matters of interest to members, particularly at the present time. After the routine business was dealt with Mr Lucas addressed the meeting, following which members were invited to ask questions which he would answer to the best of his ability. The first subject was loans. Mr Lucas said that a county had no capital of its own. ,It was a local governing or administrative body brought into being by act of Parliament and given jurisdiction over a certain area of land. Its actions were restricted by acts of Parliament. It “may” do some things and it' “shall” do other things. It “may” borrow from its bankers in anticipation of its revenue. Its revenue was derived from various sources—sundry license fees, Government grants, subsidies, rates and many other sundry items. All of those items had their restrictions. License fees could only be collected from the people who required the particular license and the amount of the fee was restricted. Government grants were made annually by the Government for certain specified works which had been approved. Rates were of different varieties, hospital, special, general and separate. The hospital rate everyone knew about. Special rates were for the purpose of •paying interest and sinking funds on loans that had been raised with the authority of the ratepayers. Separate rates were for some special purpose and had their limitations. General rates weje for the general annual administrative, maintenance charges and many and various yearling payments that had to be met and the general rate was limited by law to an amount not exceeding in any one year 3d in the £1 of capital value. Gener- ' ally speaking there was no authority to increase the amount of the levy on ratepayers without the sanction of the ratepayers. 'Continuing Mr Lucas said that the Coromandel County Council had for some time now realised that an alteration must be made. Roads and bridges were needed. The paramount

need of the county -was. improved means of communication. How was that to be brought about ? At present the county council could only do such work as it could find money to pay for work.

Although the county was collecting more pounds by way of rates, license fees, etc., than in years gone by, the increase had not kept pace with the rise in the cost of wages and materials. To illustrate that point the speaker instanced dog registration, the fees for which were'the same as when the act was passed in 1908, 2/6d and 10/-. Motor drivers’ licenses were the same as in 1921; impounding fees were the same as in 1908; heavy traffic fees of 1932 had been amended but were substantially the same. On the other hand wages and materials had risen. In 1931, the council paid 10/- or 11/- a day but now the award provided for approximately three times that amount. The valuations of property, dated from 1936. Was it any wonder there was insufficient money to enable the work very much needed to be carried out? asked Mr Lucas. During the past few years the council had carried out ‘quite a few works of a permanent nature and paid for them out of the general rate. Those works were the bridge at Waikawau south, the Otakaeo bridge on Thames Coast, the Opu culvert, near Te Kouma turn off, the concrete box culverts at Colville and Big bay, the concrete crossings on Port Jackson and Port Charles roads, the culverts on Kereta hill (Numbers 7 and 8), McKenzie’s bridge on 309 Main Highway and No. 5 bridge on the Kaotunu road. The council had paid its share on all such works. In addition there was the tar sealing on Thames and Wharf roads and at Whitianga. Some of those had been financed over periods of seven to ,10 years but the interest and principle had to come out of the general rate. Referring to the machinery and plant loan Mr Lucas said that the need for the various items listed was known to all. He could not think that the whole amount of the loan would be raised and spent in the first year. It would be for the council to initiate the programme, but he suggested that the quarry equipment was the most urgent. If the council could get its quarries working satisfactorily and

economically then it would be able to improve the roads. Better roads meant lower car and truck maintenance cost which meant lower transport costs. The County Office

There was no need for him to stress the need for proper office accommodation, continued Mr Lucas. In addition to providing a reasonable place and amenities for the staff, there was adequate housing of permanent records belonging to the people. Those were really priceless. Many documents, maps and records were irreplaceable. He personally had experienced the troubles resulting from records being destroyed by fire.

Mr Ball asked if there was any Government purchasing officers and if there was any supervision in spending the money raised by way of loan? Would the kind and type, etc., of machinery to be bought be based on the recommendations of the engineer which could be ignored by the council if it so desired?

Mr Lucas in reply quoted section 8 and 9 of the Engineers’ Registration Act, 1'944, which says that “It shall not be lawful for any local authority to expend any moneys borrowed by way of loan, etc., for the purpose of any engineering work, except under the supervision of an engineer who is the holder of an annual practising certificate issued under Section 3 of this Act.”

Mr Preece asked why the council was raising such a large loan when some of the items were not required for say two or three years. He quoted the grader as an example. In reply Mr Lucas said that orders had to be placed about 18 months to two years before they could be supplied and in some cases longer, according to the class of i-mport. Mr Jane asked if the council had to raise the full amount of the loan at once. If not did they have to pay interest on the whole amount frorft-the time the loan was carried ? ,

In replying Mr Lucas said, “No. We can raise what is needed from time to time and only pay interest on what, we raise as we. raise it. The f whole amount has to be lifted within two years. If the council needs it all it can raise it and invest it till required. If the whole amount is not needed and is not all lifted within two years, then it automatically cancels the balance of the loan.

AI Permanent Engineer The* question, as to whether the Coromandel (County Council should employ a permanent resident engineer was then discussed at some length. Mir A. S. Tonkin pointed out that something would have to be. done about a wharf at Coromandel wherever it was put, either at McGregor’s bay or Preeces’ point and the work entailed by the abandoned lands project together with the work which would follow if the loan proposals were carried, would warrant the council having a resident engineer. For some years past the small amount of work to be done, owing to lack of finance had not warranted a full time permanent engineer being employed. Mr Preece said the provision of a strongroom and facilities and a place for the staff to work, when explained by Mr J. H. Lucas, were essential and it was a pity those explanations could not have been 'made mbre; widely known to the public. Mr Tonkin referred to the loss of public records by fire and earthquake in the Hawke’s Bay district. That had been a tragic calamity and it had been most difficult to start again without records. Mr Tonkin moved a vote of thanks to Mr Lucas for his address and for information in reply to questions.

' “Unless the people of Coromandel,” he said, “are prepared to shoulder a certain amount of responsibility and if the loan is not carried then it is a deterrent to the advancement and progress of the whole county. On election day you should choose the people whom you consider fit to spend the money sd raised. “Quite frankly I hope the loan is carried and I ask the press to give as wide publicity as possible to what has been said here tonight.”