COUNTY FINANCE

New Zealand Herald, Volume 78, Issue 24104, 24 October 1941, Page 8

COUNTY FINANCE

COROMANDEL "BANKRUPT" ASSERTION BY CHAIRMAN (0.C.) COROMANDEL. Thursday "We are bankrupt this year," said the chairman, Mr. C. C. Rae, at a meeting of the Coromandel County Council, "and I'll defy anyone to prove the contrary." Mr. I? a e pointed out that the council's overdraft at the bank was not met by outstanding income, and he said that the Local Government Loans Board, in deferring sanction of a loan of £SOOO under the Rural Housing Act, had described the finances as being particularly unsound. The discussion arose when the letter from the Loans Board was being read. The board asked for further information on the county finances. Several councillors pointed out that some of the houses for which the loan was asked were already being constructed. Mr. A. J. Denize said the council's position was better than it had been two years before. The system was wrong, and capital works should be i paid for out of the Consolidated Fund. When the appointment of a county engineer was being discussed, the chairman said that if the bank manager refused to cash a council cheque he would be within his rights. Eighteen months ago he had moved for the appointment of a commissioner, but the council defeated his project. A motion to rescind the decision to appoint an engineer was defeated by five votes to three.