The Southland Times. PUBLISHED EVERY MORNING, Luceo Non Uro. WEDNESDAY, MAY 17, 1922. THE CORPORATION ACCOUNTS.

Southland Times, Issue 19517, 17 May 1922, Page 4

The Southland Times. PUBLISHED EVERY MORNING, Luceo Non Uro. WEDNESDAY, MAY 17, 1922. THE CORPORATION ACCOUNTS.

The Mayor is entitled to be self-congrat-ulatory on the condition of the Corporation accounts at the close of the financial year ended March 31. He entered the year with the intention of keeping the expenditure within the revenue, and to him, more than to any other member of the Council, credit is due for the fact that a tight hand has been kept on the outgoings, a process which has teen in the main responsible for the surplus that is shown on the year’s working. I.a the past few of the municipal bodies have been living within their incomes, and the tendency throughout the country has been for the expenditure to run wild. Under the legislation passed last session, the local bodies will be required to change their rather easy-going methods, and the change will be for the better. The Act, though it may require some attention later, is certainly a step in the direction of sound local administration, and although in the initial stages the adjustments may cause municipalities considerable inconvenience, the ultimate effect will be to make people thankful that the Government introduced this piece of legislation. On all accounts the year shows a surplus of £4218, but it must be remembered that included in that figure are credits which are specifically earmarked and cannot be diverted to other account®, while in some of

the trading accounts nothing has been charged to renewals. If we take the principal trading accounts we find that the renewal items should be:

£ Electric Power . 1056 Tramways .. .. «. .. 1400 Electricity .. .. „ . . 927 Gasworks (say) 4 . ». 1000 Total .. £4383 This is enough to wipe out the surplus over the whole of the accounts, and this figure should be remembered in connection, with any consideration of schemes for the elimination of “antecedent Now that the general government is insisting that municipal bodies must live within their incomes, it will be necessary to see that trading departments are put on a sound footing, which means that the allocation of overhead charges must be dealt with on commercial lines. We may look in the future to legislation making it impossible for municipalities to make transfers between trading departments and the general account, except under special conditions. So long as our principal trading departments are relieved of charges which sound business requires, we cannot be satisfied that the town’s finances are in good shape. On the general question of the liquidation of antecedent liabilities as required by the Local Bodies Finance Act of last session, we feel that the Town Council will be well advised to avoid any loans is possible. It will not be long before Invercargill will have to devote serious attention to the condition of its streets. We cannot hope to go on much longer patching and tinkering. The alternative is a comprehensive scheme which will provide us with sealed roadways and a durable surface, which means, of course, the raising of a loan of substantial proportions. Improved roads are so urgently required that the financial operations of the Council must not be considered without the effect of a big Good Roads Loan being taken into account, and this makes it advisable for us to lean rather to the elimination of the antecedent liabilities by instalments from rates than by loan. The question is one of serious import, and it cannot be settled properly unless we are satisfied that when we take the step we are not including in those liabilities sums which more properly should be carried by the trading departments and liquidated by those departments, instead of by the general body of ratepayers. To discover our position in this connection, sound accountancy, is required, and we are pleased in this connection, to congratulate the Corporation staff on the manner in which the gasworks position is shown.