LOCAL BODIES' DEBTS.

New Zealand Herald, Volume LXVII, Issue 20603, 30 June 1930, Page 10

LOCAL BODIES' DEBTS.

REASONS FOR INCREASE. NEW SERVICES AND ROADS. In further roply to the Auckland Chamber of Commerce, a committee, of which criticised the growth of local body indebtedness, Mr. S. Gray, of Mount Eden, has written a letter to the secretary of the chamber, Dr. E. P. Neale. Mr. Gray writes, in part:— "You refer to my statement that' it is better to put down a good' road, from loan money and save maintenance, and say this would lead logically to concreting all roads. Concrete is not the only form of permanent roading, and-no one would put it down in side roads. It is,; however, possible to put down a surfaco that will reduco maintenance' to a minimum and satisfy the drivers of vehicles. "Tho original subject of discussion was the rate of increase in local body, indebtedness. I pointed out the directions in wiiich money had been spent, and that the great percentage. of increaso was duo to the further functions imposed by the public on local bodies, transport, olectric power and gas account for a largo part of the increaso, but do not normally increase the rates, as the services earn their own interest. I do not defend the system, but \vish :to point out the effect which it has on the total of local body indebtedness. The Chamber of Commerce would deserve well of the community if thoy would point out that by leaving tho risks and profits of such services to private enterprise capital would earn a little more and the public would pay a little less. "I nolo that your committee .is . con. vinced that many instances of wasteful expenditure' of loan money have taken place. 1 am not concerned to dispute this, which is not tho 1 subject under discussion. Local bodies, being human, are not immune from errors. Even Govern: ment departments have been known to make mistakes. Your committee are convinced that there has been much' unconomic capital expenditure, because' of the general increase of rates. : They should take into consideration tho demands of the past five or six years for roading of a totally • different nature, which has thrown great exponse on all local bodies."