GROWING BURDEN OF LOCAL BODY FIANCE

Manawatu Times, Volume LIV, Issue 6633, 21 August 1931, Page 7

GROWING BURDEN OF LOCAL BODY FIANCE

Premier Urges Need for Review

CROWN’S LIABILITY FOR RATES

Dor Press Association. WELLINGTON, Aug. 20. The position of local body finance in Now Zealand is becoming a very serious problem of its own and wifi undoubtedly have to be reviewed, said the Prime Minister, Mr. G. W. Forbes, whon replying to a deputation representing local bodies, particularly county councils and suburban borough councils. Tho deputation asked for the passing of legislation to place the Crown in tho same position as a private mortgagee concerning liability for the collection of rates for the payment of interest on special loans and also general rates. A statement was made that the local bodies were in a real difficity because of the action of tho State Advances Department in refusing to recognise rates which had accumulated. The contention was advanced that unless the law were amended a chaotic condition would arise in relation to local body finance. If the local bodies were unable to collect the rates and tho Crown, as mortgagee, refused to accept liability, the question of default would arise as there would be no funds for the payment of interest on State Advances loans and it would be a case of putting a receiver in.

Mr. Forbes said previously the Government had set aside special funds to meet rates on areas of necessitous Crown settlers that showed recognition of their obligation. The position of local body finance had become a hefty problem and tho whole matter would have to be gone thoroughly into. Ho would be pleased to go into the matters raised and seo what could be done. “Of course, when the Governmnet’s finances are so short we cannot easily accept added responsibilities, but 1 recognise that something has to be done. Local body finance is a problem in itself and an inquiry into it cannot bo postponed much longer,” concluded Mr. Forbes.