LAKE COUNTY.

Otago Daily Times, Issue 21242, 24 January 1931, Page 9

LAKE COUNTY.

A QUESTION OF BOUNDARIES. PETITION FOR SEPARATION. DISAFFECTION IN KINGSTON RIDING. (From Our Own Correspondent.) QUEENSTOWN, January 23. Arising out of dissatisfaction that has existed among a section of the ratepayers at the southern end of the Kingston Riding of Lake County regarding alleged anomalies in the expenditure of riding moneys a petition signed by over 40 of the ratepayers in the affected area ‘was presented, to the Southland County Council some time ago. The petitioners asked that the boundaries of the county be altered so that a portion of Kingston Riding might be transferred to Southland County, with which it was considered greater community of interest existed. Together with this petition another from the Southland County Council was presented to the Governor-General praying that the boundaries of the two counties be altered in accordance with the wishes of the petitioning ratepayers. Following the customary procedure a commission was appointed to inquire into the matter, and the date and place of hearing were fixed for January 20 in the Courthouse at Queenstown. Those appointed to the commission were —Messrs J. Macdonald (Commissioner of Crown Lands, Invercargill), G. T. Martin (district valuer, Invercargill), and Charles Weavers (farmer, Alexandra). The proceedings commenced at 10 a.m., and the inquiry lasted for two days. Mr S. M. Macalister (Invercargill) appeared for the petitioning ratepayers, and for the Southland County Council. Mr H. E. Barrowclough (Dunedin) was associated with Mr W. A. Harlow (Clyde), county solicitor, in representing the objectors, the Lake County Council. The area, which throughout the hearing was referred to as the affected or “ disaffected” area, is some 100,000 acres in extent. It is that portion of Lake County running from the present boundaries to a line from Eyre Peak, Halfway Bay, and to the southern boundary of Glen Nevis Station. The chairman of the commission, Mr Macdonald, explained that the_ order of reference required the commission to report whether an alteration in boundaries 'of the two counties or any other alteration of the boundaries of the two counties ought or ought not to be made. The preedure would be on the lines of contested civil courts, and he did not anticipate that any legal points would be raised. Mr Macalister said that the matter before the commission was one of justice to the petitioning ratepayers. If a case could be made out, owing to the nature of the area and the way it had been treated, he would submit that whereas a hardship might be caused to Lake County, it was not a matter of concern to the commission. The question to be decided was whether the “ disaffected ’ area should be transferred to Southland or whether the commission had any other proposal to make concerning the contiguous counties. The dissatisfaction among the ratepayers was not of recent origin. Some 25 years ago a petition was dodged praying for the cutting off of the appendix” (a term applied to the area on account of its shape) which lay between the Waikaia and Oreti ridings of the Southland county. About four years ago it was again discussed, but was not proceeded with. The ground of dissatisfaction was, briefly, that the ratepayers had been over-rated in proportion to the benefits received. The alteration of county boundaries was not a rare matter. The Local Authorities’ Handbook for 1980 showed that since counties were established in 1876 there had been, an increase from 63 to 129 in the number, the significant conclusion being that the extra counties were created by subdivision. It was evidence that as settlement increased different interests arose that could not be administered by the large body. Motor traffic had quite altered the face of local body administration, and the tendency now was the drawing together of places. A glance at the map showed that the affected or “ disaffected ” area lay in to Southland county. The extreme end ot Waikaia riding lay 106 miles from Invercargill; the extreme end of the affected area of the Kingston riding was only 90 miles from Invercargill, and could be administered by the Southland County Council. Regarding tho maintenance of roads in the area, motor vehicles were essential on present day standards; yet this area was cut off from the centre of the county by the lake. Motor' vehicles had to be carried across it., Southland county employed motor traction in the contiguous area; Lake county had only surfacemen’s tools. There was a Lake county surfaceman at Nokomai, and a Southland county man at Athol, alongside. An anomaly, too, was that the Lake county surfaceman bad to cross or traverse a lot of Southland county roads to go to bis work, and vice vex - sa. Another anomaly was that a number of settlers in the Southland county who lived in the area and paid large sums to the Southland County Council, used the Lake county roads, and vice versa. Another point that arose was. What community of interest had the settlers with Lake and what with Southland?? The county boundary was defined in 1876, and the reputed reason for including the appendix” in Lake county was that it was needed to produce revenue for Lake county. Admittedly at that time there was a community of interest or personal touch with the Queenstown end, inasmuch as the area was settled by families of miners. There was only a wagon track to Invercargill, and no proper road beyond Lumsden. The affected area was completely isolated from the rest of the county on account of its geographical position, so that no community of interest existed between the ratepayers in that area with those in the rest of the county. No other area in the county was similarly situated. He made this statement for the reason that it might be thought that the area running down the east of the lake relied solely on the lake for its outlet; but it bad another outlet down the south. In the Cardrona district they had a main highway connection, but in the Kingston Riding there was no road connection with its centre. There was, however, a good highway leading to another local body centre —Inyercargill. Briefly, the grounds for complaint were: (1) The awkwardness of administration of the affected area owing to its geographical situation and boundaries; (2) the overrating of the area and the support of other ridings by money raised in Kingston Riding; (3) the failure to give this area a fair proportion of the rates paid

by it. The failure to rate equitably was a symptom of a more deep-seated trouble. A comparison of the rating of Kingston with what would be paid if it were in Oreti Riding of Southland County was interesting. The valuation of Kingston Riding being £165,300, the amount payable on the IJd rate levied on capital value was £1033; in Southland County a ]|d rate on the unimproved value and 19-80 d Hospital Board rate on the capital value amounted to £762. The valuation of the affected area was approximately, £100.140. The figures calculated on that basis were: Lake County general rates £626, Southland County £461, both being inclusive of Hospital Board rate. This was evidence that the area was more severely rated than if it were in Southland. What proportion of the rates collected (plus Government subsidy) was going back to the riding by transfer to the riding account? The balance sheet of the Southland County showed that fivesixths of the total general rate was so transferred, which appeared to be a fair way. The Lake County balance sheet for 1927-28 disclosed that rates collected in the Kingston Riding amounted to £899 lOs TOd, and the Government subsidy to £ll4 15s sd, making a total of £lOl4 6s 3d. A sum of £307 16s 7d was transferred to the riding account, and the sums spent out of the general account in addition brought the total to £437 16s sd, which was the amount returned directly or indirectly to the riding. The return of five-sixths of the general rate, as would obtain were the riding in Southland County, would have been £845. The respective figures for 1928-29 would have been £4lO 6s 7d and £Bl3 Is. and those for 1929-30 £532 7s 4d. and £737 10s. The system of finance in Lake County had been not to spend the money accruing in Kingston Riding in that riding, but in others. It should have been spent in the riding, or the rate should have been reducecL About two. years ago a petition was lodged with the council asking for a reduction of rates or for the expenditure of the money in the riding. The affected area was a little less than two-thirds oi the riding. The amount the riding was in credit was £2372; the deduction was that about two-thirds of that sum had been over-rated. Kingston Riding had a high valuation (£165,300),and the declaring of a main road affected it. A main road had been defined by the court as a road, the necessity for which was not confined to a district, but was common to a whole district. There was only one small main road in Kingston Riding on which money was spent. After quoting further figures from the county balance sheets, Mr Macalister went on to say that the declaration of main roads could act very detrimentally on other parts of the county, and that was what had occurred in the position under review. To sum up, counsel said his contention was: (1) That the county boundary was anomalous; (2) the boundary made the administration of the affected area more expensive than it need be; (3) the area was isolated from the rest of the county, and for a number of years it had been paying more and receiving less than it should have done; and (4) that whatever the reason for the dissatisfaction of the petitioning ratepayers and whatever the hardship that might be caused to Lake County this area had bought its freedom.

The first evidence for the petitioners was given by Fred Naylor, settler, Nokomai, who represented six others living within a radius of two miles, and who, he declared, were unanimous in their desire to have the affected area transferred to Southland County. Witness said . the rates paid by these people amounted to £ll6, including the hospital rate. The Southland rate would have amounted to only £Bl. Their reasons for desiring the change were as set out by their solicitor. In addition, the cost of transport of road-making plant over the lake was a burden on the riding, whereas the Southland plant was right at hand. Witness’s commercial interests were 'all with Southland, in consequence of which he used the Southland roads. —By Mr Barrowclough: In witness’s opinion, the most important objection to remaini.ig in Lake County was want of expenditure, or neglect. Only £2O had been spent on the four miles of road in his immediate district. The Lake County roads, in his opinion, were not maintained to the same standard as were Southland County roads. He would be surprised to know that more money had been spent in the riding than had been collected, . excluding overhead expenses. He considered it would take away the dissatisfaction if that were proved. William Gordon, farmer, Gareton, said he represented some seven or eight settlers in hia immediate district, whose general rates amounted to £ll2 odd. Under Southland County rating, if the area were included in Oreti Biding, the sum payable would be £79 odd. The length of the “ appendix ” which it was desired to cut off from Lake County was approximately 12 miles from Fairlight to Parawa; the average width was about 4£ miles. The settlers consider they were not getting value for the rates paid, and that there was more community of interest geographically with Southland. Witness was ■a ratepayer in both counties. The dissatisfaction was of long standing. The Chairman; We would. like to kilow whether the lower rate in Southland County has caused your dissatisfaction or has been the reason for your wishing the change? Witness: Yes. • * Messrs Angus M‘Lean (Garston) and Samuel Soper (Athol) also gave evidence. Mr A. W. Service, clerk and treasurer to Southland County Council, submitted figures showing the system adopted by his council in regard to the proportion of rates collected that was transferred to the riding accounts. In 1928-29 the proportion was 53-61; in !927-28 it was 54-62; in 1926-27, 47-56; in 1925-26, 53-60. No main roads were declared in southland County. It was against the councils policy. The general rate was If dm the £ on the unimproved value, and. 19-80 on the capital value. . B C Basstian, engineer to Southland County’ Council, gave evidence expressing his opinion of the Lake County roads over which he had motored the previous day. Instituting a comparison, he considered that they were of a. lower standard than those obtaining in Southland County. If the affected area of Kingston Biding were transferred toGretißidmg the maintenance staff would have to . increased temporarily, but once the roads were in order they could be maintained fairlv easily by their Athol man vuth other easuaf help. His council had up-to-dlTh™included the evidence for the P °ln 10 opening the case for the Lake County Council (objectors), Mr VV. A. Harlow said the present statue of the county had existed for 53 years, in spite of the fact that there had been attempts to cut away a portion of it. If the pres ent state of affairs was to be disturbed the onus was on the petitioners to show why it should be so disturbed. What would be the corresponding benefits and would they outweigh any detriment to other portions of tire county? It mul require to be an overwhelming advantage to warrant the change. Sometimes alter ations or amalgamations took place, uuthat was a totally different matter, from the application before the commission. Some years ago the Lake County Council obtained a report on road-making plant and, acting on the recommendations made, plant was purchased to meet the needs of the county as a whole. The result ot any severance would be that the plan.would not be working full time, with resultant loss to the county. Equally important was the fact that a reduction in the area, and rates would not result in any reduction in overhead expenditure. Then, the whole of the balance of the riding was represented by five individual interests that were opposed to the petition. It would also be shown that the Lake County roads had been developed principally from gold won in the Shotover and Arrow Bidings, large sums received in goldfields revenue and mining rents having been spent in their construction and maintenance. The big credit in the-King-ston Biding account was due largely to the rates paid by the rest of the big pastoral runs. The affected area had actually been having expended on it more than it had been contributing. The ratepayers outside the area did not use those roads, and were satisfied to sec the money expended in other parts of the riding for the development of the county. With the opening of the Mount Kicholaf?Mavora road and the probable completion of the Kingston-Quecnstown road, these settlers would be reaping something from the credit balance they had assisted in Alexander Field Griffin, clerk and treasurer to the Lake County Council, was then called, and the evidence lie gave regarding methods of finance and the financial position of the county was of a_ most comprehensive nature. Since 1915 the riding accounts had been kept separate, and from that year up “to the end of the financial year ended March 31, 1930, the figures for the Kingston Biding disclosed the fact that, commencing with a debit balance in 1915 of £783, the position had improved steadily till the credit of the riding now stood at £2372. Goldfields revenue received since that time amounted

to £8240. its due share of which Kingston Riding received, though it contributed none. This riding formied between a fourth and fifth of the whole county, and the affected area about one-seventh. The total amount of goldfields revenue credited to the Kingston Hiding in the past lo years was actually only £SOO less than the credit balance of the riding. Witness submitted statements taken by analysis from the county balance sheets for the past five years. . Mr Macalister cross-examined the witness at length and made searching inquiry regarding the compilation of the figures. Questioned in relation to the expenditure of recent years in Kingston Riding, Witness stated that construction had been a big part of it, especially in the affected area. The charge to that riding was as in main highways work. Tha swale was adopted on main roads and by-roads. Its operation showed a credit. The total profit was transferred to the ridings iu accordance with the valuations. Witness stated that some time ago, in considering the general requirements, he had recommended to the council that light lorries be purchased for maintenance purposes. Examining counsel here endeavoured to get a statement from witness as to where exactly the expenditure had been carried out on Kingston Riding roads, but on its being stated that some time would be required to table it the chairman of the commission said it was not important. The chairman remarked, further, that the charge formulated by the petitioners was unfair administration, but it had been shown that there had been a perfectly adequate expenditure in relation to the revenue. In practically every county the ratepayers were dissatisfied about the money spent. In no county could one find perfect administration. The remedy seemed to be to get a strong member to support requests and push for what was wanted. Leo Lee, county chairman, was heard on matters of policy. He also emphasised that the calculations of the council would be seriously interfered with in regard to its acquisition of plant if the affected area seceded from the county. Plans for the future were also touched on in respect of expenditure on the Mount NicholasMavora road and other portions of the northern end of the riding, which was morally entitled to such expenditure. They did not anticipate any difficulty in finding, within a reasonable time, the £3O required for the proposed bridge work in the locality. The general rate was reduced from 7 to 6 farthings after the revaluation of the county. Cr M'Caughan, member for the riding, did suggest a further reduction in the rate in the Kingston Riding. The amount being paid in interest and sinking fund on loans and hire purchase on plant was £I7OO a year. This would be reduced by £6OO in 12 months’ time, by £538 in the next year, and by £4lO in the following year. In 1936 and 1937 all their present loans would be wiped off. Ims would make it possible to reduce tne rates by £I7OO and continue the present rate of expenditure on road works if no other big liabilities were incurred. A considerable sum had had to be expended in the past on constructional work on main highways. In future the council would be engaged more in maintenance. Following on a reiterated suggestion by petitioners’ counsel that it was not possible to see how the council could find the moneys which it had been declared it could, witness informed the chairman of the commission that when the annual estimates were made up the county inspector conferred with riding members individually regarding their requirements, and they were then submitted to the Finance Committee. These estimates were subject to some .fluctuation owing to the flood damage that a mountainous county was subject to. The council s road works programme was always reasonably carried out. . . The chairman: The, commission may take it, then, that the Lake County Council will make a service effective to.satisty the settlers iu the southern portion of the county? Has the council had any particular complaints? , . . Mr Lee: No. Requests for work to be done have been received from time to time, and they have been earned out wherever possible. The chairman: Has finance ever stopped any programme embarked on at tne n - ginning of the year ? The 'chairman: Can we be assured that if you promise work you will be able to carry it out? The "chairman: That clears the position a MrMacalister: If the county statements show that the affected area is a burden on the northern area, why did the conn cil not want to lose it. ■ Mr Lee: Because of the reasons already stated.—By counsel r Under the Act, Kingston Riding may have been entitled to two members, but . there had not been any expressed desire for increased representation. • , George Reid, mine manager, Glenorchy, said he had been the member for Greenstone Riding of the Lake Council for 16 years, and had been chairman oi the Works Committee for 10 or 11 .years. He was now a member of the Finance Committee. At their November meeting thev had considered the matter of a reduction of rates owing to the hard times the farmers and settlers, were having. They had in view that the county would be left intact, otherwise their calculations would be upset. Evidence on behalf of the remaining five interested settlers in the. northern territory of the Kingston Riding was given by Messrs John Mackenzie, of Mackenzie and Sons (Walter Peak station), James Burnett (Halfway Bay and Cecil Peak stations), Dickson J"™"?® (Kawarau Falls station), and Archibald M'Caughan, of M'Caughan and Son . (Glen Nevis station). The burden of this was a strong objection to the petition.. Ibey were all large ratepayers, and, though their geographical position was such that it had not been possible until recently, to spend money on roads to their properties, they had been quite satisfied to see the expenditure on the roads in other parts of the county that were of value to the general ratepayers as well as to themselves, Mr M'Caughan also spoke from several years’ experience .as road gang, manager with the council from 1892. The original survey of roads in river beds in Kingston Riding led to great difficulties with road construction, and frequent damage by floods, with attendant heavy upkeep. , , _ R. J. Powell, Lake County Inspector, was closely examined regarding actual expenditure in the affected area. This concluded the case. Counsel for the parties addressed the commisison. In reciprocating the thanks of the legal profession for the attentive hearing given, the chairman expressed the hope that the decision, which in due course would be given in accordance with the evidence, would be regarded by the parties as a just one, and that no ill-feeling would arise among the county settlers as a result.