“COSTS MAY INCREASE AT FIRST”

Northern Advocate, 23 June 1937, Page 7

“COSTS MAY INCREASE AT FIRST”

Minister On Financial Side Of Question The important question of costs in relation to the proposed amalgamation scheme for local bodies in Northland was dealt with at length by the Hon. W. E. Parry, Minister of Internal Affairs, in his address to the conference of local bodies being held in Whangarei today. “At the risk of severe criticism, but in order that there may be no misunderstanding of the position, I want to make it quite clear that I am not necessarily aiming at rei duced costs,” he said. “I am quite prepared to find that there might be an increased cost of running some of the new local authorities proposed to be created out of our reorganisation plan. > In particular, I am quite prepared to find an increased cost of running local government in Northland. Tremendous Development Ahead. - “There is tremendous development still ahead of Northland, and that development can. only take place at some cost to the district and to the nation, but the development of the district will increase the productivity of the district so there will be a corresponding asset for the additional money ‘spent. 1 ,'

“That is really my objective, to create local bodies which are strong enough and able to cope with the modern requirements of local government in a really scientific way, and to carry out such development as is necessary, in order that population may increase and the national productivity of the Dominion increase.

“That, as I say, can only be done at cost, but the additional cost must be offset by the additional assets created. “I am not for one moment suggesting any increased cost through injudicious or wasteful expenditure. Money should be spent judiciously and according to a well-conceived plan for the whole of the Northland district. Rational Basis Wanted. “This result can be achieved by reorganising the local bodies of the district on a rational basis. It cannot be fully achieved by continuing a process ot disintegration. If this policy is pursued and the natural resources of such a valuable part of the Dominion are fully exploited, then the. Northland district will be playing its real part in earning the national income of the Dominion which, after all, is but the national productivity of the Dominion. Farmers’ Union Interest. “I have touched on the question of the importance of Northland as a farming district. Every farmer is anxious to see costs reduced, at any rate in terms of the money spent, he wants to see increased service rendered. The Farmers’ Union over a number of years has taken a keen interest in the subject of local body reorganisation.

‘*l have been impressed by the insistent demand which they made for a reduction in the number of local bodies throughout the Dominion so that greater service could be rendered to the community and a greater degree of development of the rural districts take place, “The Northland organisation has been one of the branches that has taken a prominent part in the proceedings. Today I look for the support of farmers in helping me to bring about this much-needed reform so that our local government in the future may be run along more rational and economic lines. Position In Future. “I have been asked what will be the position in the future regarding the expenditure of moneys for reading purposes, that is to say, Government grants and local rating revenue. I have been asked to define what policy will take place, whether the expenditure of these moneys will be solely within the hands of the new local authorities or whether some will be spent by the Government and some by the local bodies.

“My answer to this, at the moment, is that local bodies, particularly county councils, have not done too badly as far as Government grants are concerned. Over a number of years, local authorities seem to have become very reliant upon the general Government for financial assistance, particularly in major problems, and, or. roading matters, the position has developed where, so far as main highways at least are concerned, local authorities today are responsible for shout only 2C per cent of current expenditure. “In addition, I find that for flood and storm damage, the Government has responded liberally to the requests of local bodies, and in the Northland district alone, many grants have been made to the extent of £3 for £l. “The Government has done its duty, and it looks to local bodies to do their duty. My answer to the question as to the future expenditure of roading moneys is this —Put your own houses in order and then you can speak with greater weight when approaching the Government. But do not think that the Government is going to give all and expect nothing. Reply To Allegation. “Whilst I am on this point, let me reply to certain allegations that have recently been made concerning centralisation of roading control and expenditure. This criticism, no doubt,

emanates from the policy of my colleague, the Minister of Public Works, in taking over some 4,000 miles of arterial highways as State highways.

“The necessity for that system arose from the multitudinous number of local authorities exercising control over the principal arterial highways of the Dominion and the varying manner in which those local authorities discharged or failed to discharge, their responsibilities to the Dominion’s transport requirements which today are so paramount for our national welfare; ■ * “The policy of centralised ; control of State highways is justifiable. But I would point out, as my colleague has already pointed out, that such policy

is not depriving the local authorities of opportunities for serving the community, as after the -4,000 miles of State highways have been created, local authorities still have more than plenty to do to maintain . properly and control the ordinary rural roads.

“In fact, if all existing main highways were taken over by the State, local authorities would still remain in control of over 30,000 miles of formed roads, apart from the maintenance of tracks and other public services. Not Aiming At Centralisation. “I may say that I have been criticised that I am aiming at centralisation. My answer to that is that I am not aiming at centralisation. I realise

the necessity for local government and the value which results from a strong system of local control. I have made the point' that centralisation is necessary on a matter such as State highways where uniformity of results is so essential, and no real objection to centralisation can be raised there. ' .'. : “On the other hand, decentralisation is indispensible where particular local district interests are paramount. .We need local government to maintain effectively our democratic institution, and I would be the last one to suggest" otherwise, but we need a strong system of local government, and that is what I am aiming at with my present policy.”