LOCAL BODIE'S FINANCE

Pahiatua Herald, Volume XXXIX, Issue 11830, 21 August 1931, Page 6

LOCAL BODIE'S FINANCE

NEED FOR REVIEW STATEMENT BY PREMIER. Electric Telegrapn—Press Association WELLINGTON, August 20. The- position of local body finance in New Zealand is becoming a very serious problem of its own and will undoubtedly have- to be- reviewed, said the Prime Minister, Mr G. W. Forbes, when replying to a. deputation representing local bodies, particularly county councils: and suburban borough councils. The deputation asked for the passing of legislation to place the Crown Ai the- same position as a private mortgagee concerning liability for the collection, of rates for the payment of interest on special loams and also general rates. A statement was made that the local bodies were in a real difficulty because of the action of the St-at.a Advances Department in refusing to recognise rates which had accumulated. The contention was advanced that unless the law were amended a chaotic condition would arise in relation to local body finance. If the looal bodies were unable to collect the rates and the Crown, as mortgagee, refused to accept liability, the question of default would arise as there would

no funds for the payment of interest on State Advances loans and it would be a case of putting a receiver in. Mr Forbes said previously the Government- had set aside special funds to meet rates on areas of necessitous Crown settlers that showed recognition of their obligation,. The position of local body finance had become a. heftv problem and the wh-ole matter would have to be gone thoroughly into. He would be pleased to e,o into the matters raised and see what could be done.

“Of course, when the Government’s finances are so short we cannot easily accept added responsibilities, but I recognise that something has to be done. Local body finance is a problem in itself and a,m inmu’r--into it cannot be postponed much longer,” concluded Mr Forbes.

SECOND EDITION