COUNTY WITHOUT FUNDS.

New Zealand Herald, Volume LXIX, Issue 21165, 23 April 1932, Page 12

COUNTY WITHOUT FUNDS.

PLIGHT OF MATAKAOA. PROPOSED LEGISLATION. [BY TKLECtHATH.- —OWN COTIRESrONPENT. ] GISBORNE, Fridny. Tfc is anticipated that special legislation will he introduced by the Government shortly to enable at least temporary provision to be made for carrying on essential services in the Matakaoa County, the council of which decided recently that in view of the financial position it was impossible to continue to function. The position of the county has been placed before the Minister of Internal Affairs by Mr. D. McNaught, county clerk, who, after the disbandment of tlie council staff, volunteered to carry on his duties without remuneration. It is understood that Mr. McNaught is to continue to administer the business of the council in the meantime, and that the proposed legislation, while not offering any immediate permanent remedy, will enable some form of organisation to be maintained.

The present council is to bo authorised to continue in office without holding an election. Hie Government is not in a position at present to finance the county, but provision is to bo made for the payment of interest owing overseas, a payment of £1622 on this account being due on May 15. Other possible means of meeting the financial requirements are to be considered by the Government, but it will not be po»*;ble for the council to resume normal iVtivitics or to re-engage the staff.

It is expected that the legislation to be introduced will deal not only with the position of the Matakaoa but will, have important application to various questions recently taken up by the Counties' Association.

Duo primarily to the almost complete failure of native ratepayers to pay their rates, tho Matakaoa County Council recently found itself in such extreme financial difficulties that it was unable to meet its liabilities and this month decided, temporarily, to cease all activities. There are outstandng loans amounting to about £50,000, in addition to a bank overdraft of £IO,BOO.