NEED FOR ECONOMY

King Country Chronicle, Volume XXVI, Issue 3447, 19 November 1932, Page 5

NEED FOR ECONOMY

LOCAL BODY EXPENDITURE. CLOSE REVISION OF ESTIMATES URGED. A warning to local authorities to keep a careful check on their estimates throughout the year is contained in the annual report of the Controler and Auditor-General (Mr G. F. C. Campbell), which was presented in the House. “The present adverse economic conditions are reflected in the accounts of the local auhorities,” states Mr. Campbell, “and it is apparent that many authorities, owing to the inability to collect rates levied, are finding it increasingly difficult to keep within the statutory limits of the overdraft, or to meet their obligtions. During the past yer here were no fewer than 40 instances in which the statutory provisions governing borrowing- on overdraft were contravened by local authorities, and in each case the local authority concerned was called upon to take immediate steps to reduce its ovei'draft to within the legal limit.” Mr. Campbell goes on to mention the case of the Thames Borough Council, which was unable. to meet the interest payments on its loans. “Other local authorities,” he says, “are experiencing a difficulty in meeting their obligations to pay interest and sinking fund on loans. One of them at least has placed its financial position before its bondholders with the object of obtaining some measure of relief from the burden of loan charges. I desire to stress again the necessity for local authorities carefully to review their estimat s from time to ime during the year, with the object of endeavouring to keep the expenditure within the bounds of available income.” In a later section of his report Mr. Campbell mentions that during the year 15 members of local authorities forfeited their seats on account of their being interested in contracts with the local authority concerned or.on account of their holding offices in its o-ift. In all instances they appeared to have acted in ignorance of the law. Mr. Campbell draws attention to the diversity of the statutory provisions governing disqualificaion, and urges the necessity for the enactment of uniform provisins.