LONDON COUNTY COUNCIL

Otago Daily Times, Issue 13858, 22 March 1907, Page 5

LONDON COUNTY COUNCIL

I'HE FINANCIAL POSITION. A SPECIAL AUDIT. PROGRESSIVE MEMBERS WITH-' DRAW. Press Association—Ky Telegraph—Copyright. LONDON, March 20. After six hours' discussion, the London County Council decided to have a special audit on a coinmcrciat basis in order to discover its present position. The Progressive members withdrew from the meeting in a body, 1 Owing to a doubt as to the council's powers to expend money for tins purpose, st'VtH'al city men have offered to (subscribe £SCOO to defray tho outlay. During the election campaign Iho Municipal Reform party stated lhat " the policy of Ihe Progressive parly has been, and is, in relation to finance lo embark upon schema? costing millions of money without, any proper control or eo-ordinaljon of expenditure by the Council's finance Comniitlee. and without any adequate system of audit showing profit and loss, and. in addition, lo ri'-lc tlm ratepayers' money 011 iinrcinuneralivo municipal enterprises." The Reformers also, referred lo the "rash, thoughtless, unbusinesslike, and extravagant _ conduct. of the Progressives." and add thai; "(lie delil. (if Hie County Council is now £45,000,000, the cost, of oilier schemes to ivliich the council is definitely committed is another £20,000,000, yet they wisli to embark 011 further rash and speculative undertakings such as the electrical power scheme, which, according to the opinion of experts, will cost the ratepavers from £35,000,000 lo £10,000,000." Mr 11. l'ercy Harris (who ha., since been elected chairman of the council), in ihe course of an interview with a representative of Iho Pall Mall Gazette, was asked what the policy of the Municipal Reformers wou'd be if they were victorious. lie replied: "Our first duty will bo to consider carefully the present, commitments of the council, in order to decide whether any of them can bo postponed or delayed without disadvantage lo the public, and the next will bo lo avoid undertaking new speculative enterprises which arc not necessary for the well-being and good government, of the metropolis. It, is, of course, impossible to free the council from majjy of the commitments in which the Progressive parly have involved the ratepayers, but the Municipal Reformers will tako to Spring Garden* what really is, after all, the prime necessity—an economical and improved financial administration by those \vho really have, a genuine ..desire for economy. Unfortunately, a. year, or even three years, must elapse before the results of such a policy: could bo 'reaped. Tho legacy wiiich the present Council will hand over to their successors is an enormous volume of commitments and a largo floating debt. Tho question, therefore, of i-sning stock to meet tho council's weds will bo a vety serious one for the Municipal Chancellor of tho Exchequer. I think I have said enough to show that there is urgent need for financial control, and that such control cannot. bo expected from the party lhat has been in power so long. This is the great issue of tho present election."