The Northern Advocate SATURDAY, MARCH 15, 1913. FRENZIED FINANCE

Northern Advocate, 15 March 1913, Page 4

The Northern Advocate SATURDAY, MARCH 15, 1913. FRENZIED FINANCE

About eight months ago the County Council were in the throes of a.financial crisis. The councillors claimed tiiat this was caused by the Government £ for .£ grants, which meant that the Council was compelled-'to spend large sums of money in order t) avail themselves of the Government subsidies. To cope with this crisis, it was decided that the expenditure an repairs to roads and bridges should be the only work undertaken for the year, and the expenditure on this work was not to exceed a total of £ 500. Two months ago the county treasurer reported that the sum named had been exceeded. The councillors were surprised, and expressed determination to only do work which was absolutely essential for the public safety. Notwithstanding this firm riesoluljion., works involving fifty pounds each are being authorised. True, the money is not being paid out of the Council's funds at present, as private individuals are providing the money, to be repaid by the Council in one or two years. At yesterday's meeting of the Council, a ratepayer asked that repairs be effected on a certain road. The cost wouli not exceed £10, but he was willing to advance the money, and the Council repay him in twelve months' time to advance the money, the Council to repay him in twelve months' time. carry out formation work on another road. This sum is repayable by the Council in two years. Some few months back a metalling contract was let to a contractor, because he agreed to wait six months for payment, and or another occasion a big bridge repairing contract was let on condition the contractor waited for twelve months for his money. There are also n;any other instances where the Councillor.-; have engaged in this manner ol financing certain works. They, however, refused to accept a loan to provide a track for a man who had absolutely no means of getting into his property without trespassing on private lands. They alto declined to allow a councillor to advance a sum of money for the purpose of widening ' a two-foot track to a small township, where a large sawmilling industry is in progress, notwithstanding the fact that this is the only means of getting . out of the place, except by water, and that by means of a scow or launch. The Council's overdraft at the Bank of New Zealand is £0347 9s Id. There is also locked up in consequence of this overdraft sums of money for Government grants of £996 18s Id, sepaiate rates (which may not be legally

used for the reduction of overdraft) £94 11s 2d, so that the Council's real indebtedness, irrespective of accounts amounting to £700 odd, passed at yesterday's meeting, is over £6438. To this should also be added -t&e amounts received from private individuals, to be repaid at various intervals, and also the amounts of contracts let to contractors who have agreed to wait for stated periods for payment. A comparison with last year's figures at the March meeting show that the Council is in a worse position now by about £2000. It is possible that the Council may receive £ 517 2s Id from the Government Advances Department, this amount having been spent in anticipation of loans which had been applied for. They will also receive £331 Is 4d, being amounts paid on account of Government grants which have already been expended. A considerable amount of this money, if received, will be required to meet interest on the joint and several guarantee, on which the*** Council has been operating, and also to provide interest on the general fund overdraft. Nearly the whole of the rate for the current year has been collected, and beyond this there is little or no revenue to come in. The county treasurer reported to the Council at yesterday's meeting that it would be necessary to be very careful, as the overdraft is Hearing the limit again. The Council's legal overdraft is £6700, and were it not for the Council using the Government grant credits, and separate rates to reduce the overdraft instead of for the purpose for which it was received —road works—this would be exceeded by a considerable sum. The whole position calls for immediate intervention, for the county is clearly going from bad to worse.