RIDING ACCOUNTS

Te Awamutu Courier, Volume 77, Issue 6974, 6 October 1948, Page 7

RIDING ACCOUNTS

MOVE TO ABOLISH DEFEATED DECISION OF OTOROHANGA COUNTY COUNCIL One of the most controversial subjects that has occupied the attention of members of the Otorohanga County Council for many years past, and one that consequently took up a large measure of time, did so at Monday’s meeting of that body when the abolition of Riding accounts and consolidation of special rates was discussed. The clerk, Mr M. P. Goldsbro’, submitted the following report and tables, which are self-explanatory. The report read:— Riding accounts were first introduced by statute, under the Counties Act, 1908. At this time and until comparatively recent times, many roads in counties were constructed to provide access to existing farms or for the purpose of opening up new country. Finance for forming and metalling some of these roads was provided wholly by ratepayers, usually by way of loan monies, but most of the work was carried out with the assistance of Government grants on a subsidy basis. Some roads, however, w’ere formed and metalled wholly by free. Government grants, while in some cases a, small contribution was found by the local body. In 1922 the Main Highways Act was passed, and all roads declared to be highways were subject to maintenance and construction subsidies. The introduction of the State Highway system came in 1936 when most of the main arterial roads in the Dominion were taken over by the State, thus relieving the local bodies of the high maintenance and construction costs which had become a heavy burden on ratepayers on account of the high standard requirements. Local bodies were not relieved of the existing loan liabilities incurred on these roads. General Rates: Section 121 of the Counties Act 1920 provides that general rates are to be levied in ridings separately, while Section 131 deals with the apportionment of income. Section 2 of the Counties Amendment Act 1931 provides that the council of any county may by special order declare that Sections 121 and 131 of the principal Act shall not apply to the council. On the taking effect of such special order at the close of the financial year in which it is gazetted or from the close of such later year as is specified in the special order, the separate riding accounts are closed by incorporating the riding balances in the general account. Thereafter the council levies all geneial rates over the county as a whole instead of separately in each riding. Before making such rate an estimate is prepared of the proposed expenditure for the year, the sums available and the additional sums required, the total value of rateable property and the general rate necessary to raise the money required. Special Rates: This council has 38 unexpired special loans, the majority of which were raised over special rating areas. The last of these loans mature, during the year 1963/64. In many cases where the amortisation of loans is effected by the provision of sinking funds, it is apparent that these will fall short of the amounts required on the various maturity dates. These have not been taken into account in the table dealing with the special rates at the end of this report. In addition to the abovementioned loans the council contributes its share of the annual charges on loans raised by the Waitomo County Council. Powers are given to county councils under Section 43 of the Finance Act 1937 to consolidate special rates made before Ist December, 1937, and to make and levy by special order an annually recurring rate on a uniform basis over the whole of its district. Every county council that has made a consolidated rate under this section is empowered to raise a special loan for the benefit of a defined part of its district, not exceeding in the case of any special loan the sum of £lOOO, without the taking of a poll, and as security therefor may make and levy a special rate over the whole district. Effects obtained on Abolition qf Riding Accounts.—The following figures show what the position would be had the council abolished Riding Accounts as at Ist April, 1948: Honikiwi Riding: Valuation, European only, £64,407; present general rate in £, 1948/49, sid; amount produced, £1476; general rate in £ on uniform basis of 4 12/16d, £1293. Mangaorongo Riding: Valuation, European only, £223,779; present general rate in £, 1948/49, 4 3/8d; amount produced, £4079; general rate in £ on uniform basis, 4 12/16d, £4491. Te Rau-a-Moa Riding: Valuation, European only, £125,594; present general rate in £, 1948/49, sid; amount produced, £2878; general rate in £ on uniform basis, 4 12/16d, £2520. Waipa Riding: Valuation, European only, £104,608; present general rate in £, *1948/49, sBd; amount produced, £2397; general rate in £ on uniform basis, 4 12/16d, £2lOO. Wharepapa Riding: Valuation, European only, £202,571; present general rate in £, 1948/49, 4 5/16d; amount produced, £3640; general rate in £ on uniform basis, 4 12/16d, £4066. Total European value, £720,959; amount produced, £14,470; on uniform rate basis, £14,470. Riding variations would be as follows: Honikiwi Riding: Decrease of 11/16d in £, amounting to £lB3. Mangaorongo Riding: Increase of 7/16d in £, amounting to £412. Te Rau-a-Moa Riding: Decrease of 11/16d in £, amounting to £358. Waipa Riding: Decrease of 11/16d in £, amounting to £297. Wharepapa Riding: Increase of ?>d in £, amounting to £426. _ For all ridings, the total increases and decreases amount to the same amount, £B3B. Effect of Consolidation of Special Rates: The following figures show the amounts levied on ridings for special rates for the. year 1948/49, ar.d the estimated requirements until the maturity date of the last of the existing loans, together with the rate which would be required on a uniform basis over the whole county:— 1948/49.—Honikiwi: Amount £195, rate, 2d. Mangaorongo: Amount £941, rate Id. Te Rau-a-Moa: Amount £323,

rate 5/Bd. Waipa: Amount £571, rate 1 6/16d. Wharepapa: £857, rate Id. Total, £2887; rates over whole county, 1 l/16d. 1949/50. Honikiwi: £lOl, 3/Bd. Mangaorongo: £932, Id. Te Rau-a-Moa: £lB3, 3/Bd. Waipa: £476,1 3/32d. Wharepapa: £B3l, Id. Total, £2523; rates over whole county, 15/16d. 1950/51. Honikiwi: £46, 3/16d. Mangaorongo: £928, Id. Te Rau-a-Moa: £lB3, 3/Bd. Waipa: £450, 1 3/32d. Wharepapa: £764, 29/32. Total, £2371; rates over whole county, 7/Bd. 1951/52. Honikiwi: £42, 5/32d. Mangaorongo: £928, Id. Te Rau-a-Moa: £l6B, 3/Bd. Waipa: £365, 27/32d. Wharepapa: £755, 29/32d. Total, £2258; rates over whole county, 27/32d. 1952/53. Honikiwi: £42, 5/32. Mangaorongo: £568, 5/8. Te Rau-a-Moa: £42, 1/16. Waipa: £365, 27/32. Wharepapa: £755, 29/32. Total, £1772; rates over whole county, 21/32d. 1953/54. Honikiwi: £lB, l/16d. Mangaorongo: £568, 5/Bd. Te Rau-a-Moa: £42, l/16d. Waipa: 334, 2d. Wharepapa: £755, 29/32d. Total £1717; rates over whole county, 5/Bd. 1954/55. Honikiwi: £9, l/32d. Mangaorongo: £568, 5/Bd. Te Rau-a-moa: £33, l/16d. Waipa: £304, 11/16d. Wharepapa: £755, 29/32d. Total, £1669; rates over whole county, 5/Bd. 1955/56. Honikiwi: £9, l/32d. Mangaorongo: £568, 5/Bd. Te Rau-a-Moa: £2l, 1/16. Waipa: 109, id. Wharepapa: £755, 29/32. Total, £1462; rates over whole county, 17/32. 1956/57. Honikiwi: £9, 1/32'd. Mangaorongo: £523, 9/16d. Te Rau-a-Moa: £2l, 1/16. Waipa: £5O, 1/8. Wharepapa: £494, 19/32. Total, £1097; rates over whole county, 11/32d. 1957/58. Honikiwi: £9, l/32d. Mangaorongo: £393, 7/16. Te Rau-a-Moa: £2l, 1/16. Waipa: £5O, 1/8. Wharepapa: £396, 15/32. Total, £869; rates over whole county 5/16. 1958/59. —Mangaoronga: £360, 3/Bd. Te Rau-a-Moa: e £6. Waipa: £l2, l/32d. Wharepapa: £2*49, 5/16d. Total, £627; rates over whole county, 7/32d. 1959/60. —Mangaorongo: £356, 3/Bd. Te Rau-a-Moa: £5. Waipa: £l2, l/32d. Wharepapa: £2OO, id. Total, £573; rates over whole county, 7/32d. 1960/61.—Mangaorongo: £348, 3/Bd. Te Rau-a-Moa: £4. Waipa: £l2, l/32d. Wharepapa: £lO2, 1/8. Total, £466; rates over whole county, 3/16d. 1961/62. Mangaorongo: £136, 5/32d. Te Rau-a-Moa: £2. Waipa: £l2, l/32d. Wharepapa: £lO2, 1/8. Total, £252; rates over whole county, 3/32d. 1962/63.—Mangaorongo: £6B, l/16d. Waipa: £l2, l/32d. Total, £80; rates over whole county, l/32d. 1963/64. —Mangaorongo: £6B, l/16d. Waipa: £l2, l/32d. Total, £80; rates over whole county, l/32d. Summary of Combined General and Special Rates: — 1948/49: Honikiwi, 63d; Mangaorongo, 5 3/8d; Te Rau-a-Moa, 6 l/8d; Waipa, 6 13/ 16d; Wharepapa, 5 5/ 16d; uniform general and special rate, 5 7/Bd.

1952/53: Honikiwi, 5 21/32d; Mangaorongo, sd; Te Rau-a-Moa, 5 9/16d; Waipa, 6 11/16d; Wharepapa, 5 7/32d; uniform general and special rate, 5 15/32d.

1956/57: Honikiwi, 5 17/32d; Mangaorongo, 4 15/16d; Te Rau-a-Moa, 5 9/16d; Waipa, 5 5/8d; Wharepapa, 4 29/32d; uniform general and special rate, 5 5/32d. 1960/61: Honikiwi, sid; Mangaorongo, 42d; Te Rau-a-Moa, sBd; Waipa, sd; Wharepapa, 4 7/16d; uniform general and special rate, sd. 1964/65: Honikiwi, sid; Mangaorongo, 4 3/8d; Te Rau-a-Moa, s|d; Waipa, sBd; Wharepapa 4 5/16d; uniform general and special rate, 4 13/16d.

Increase or decrease per £lOOO unimproved value on uniform rating:—

1948/49: Honikiwi, £1 11s 3d decrease; Mangaorongo, £2 Is 8d increase; Te Rau-a-Moa, £1 0s lOd decrease; Waipa, £3 18s Id decrease; Wharepapa, £2 6s lOd increase.

1952/53: Honikiwi, 15s 7d decrease; Mangaorongo, £1 18s 9d increase; Te Rau-a-Moa, 7s 9d decrease; Waipa, £5 Is 6d decrease; Wharepapa, £1 0s lOd increase.

1956/57: Honikiwi, £1 Ils 3d decrease; Mangaorongo, 18s Id increase; Te Rau-a-Moa, £1 13s 7d decrease; Waipa, £1 18s 9d decrease; Wharepapa, £1 0s lOd increase. 1960/61: Honikiwi, £2 Is 8d decrease; Mangaoronga, £1 0s lOd increase; Te Rau-a-Moa, £2 Is 8d decrease; Waipa, £2 4s 3d decrease; Wharepapa, £2 6s lOd increase. 1964/65: Honikiwi, £2 17s 3d decrease; Mangaorongo, £1 16s 3d increase; Te Rau-a-Moa, £2 17s 3d decrease; Waipa, £2 17s 3d decrease; Wharepapa, £2 Is 8d increase. The latter figures show what would be the position of the average ratepayer of the county if the proposal had been put into effect. The chairman, Mr J. L. Wallis, said that while they might differ on the matter contained in the report there would be no difference of opinion as to the amount of work put into it by the clerk, for the information set out therein was a revelation to councillors. Mr Wallis moved a hearty vote of thanks to Mr Goldsbro’ for his work in preparing the report, and the motion was carried by a hearty round of applause. In reply to an observation by one of the councillors the chairman said that only the ridings accounts would be abolished if the motion was carried, and it would not mean the abolishing of the. ridings, nor would it effect the Council’s' representation. The chairman said it was an important matter and at the last meeting he had asked the Council to give consideration to the matter, but he had no desire for councillors to be rushed into giving a decision. Cr Rothery suggested discussing the matter at the next meeting, and then they could hold a special meeting to pass the special resolution abolishing the riding accounts if that was so decided.

Mr Wallis said that rates would never build roads, for it was grants and subsidies that built roads. If the proposal to abolish Riding accounts was adopted by the Council the county would be placed in a better position. While they might be loth to advertise the fact yet it was out of the National pool to which all contributed, including county residents, that county councils built their roads. A somewhat prolonged silence followed the chairman’s remarks and it continued until Mr Wallis, continuing, said that in two Ridings ratepayers would have to pay more for their roads but the speaker appealed to councillors to take as wide a view as possible of the subject. If councillors wanted to take time to consider the matter further he would be agreeable to the discussion being postponed

until the next meeting. Cr Walters said he was quite happy about taking a vote on the subject that day. The chairman said that in the event of the proposal being carried he did not want anyone to think that they had been badly treated. «

Cr Jamieson: Vote on it now and clean it up. Cl* Hall expressed similar sentiments.

Cr Grierson favoured deferring the matter so that the ratepayers would have the benefit of the figures submitted by the clerk. He (Cr Grierson) believed such an action as proposed would be of benefit to the county. Cr Rothery also said he was quite easy about the question of chiding or otherwise on the question that day. As councillors appointed to the council they had to consider the best interests of the council as a whole and not merely that of their respective Ridings. If the matter was referred to the ratepayers they would get quite a difference of opinion. Cr Wynyard preferred to have the matter decided that day but he had no desire to stand in the way of anyone who wished to have it deferred for further consideration. Cr Jamieson said he could not go to his ratepayers and say he was in favour of it, seeing that they would be asked to pay more. The chairman expressed disappointment at Cr Jamieson’s attitude. At this stage there was some evidence of a little feeling being engendered and the chairman said he deprecated the introduction of feeling into the discussion. Personally, he had none.

Cr Rothery moved and Cr Grierson seconded a motion that the Council adopt the policy of abolishing the Riding accounts and consolidating the special rates. Cr Grierson said he believed it would be in the best interests of the county as a whole to do what other counties had already done. The chairman, in agreeing to it, had made a concession. The Honikiwi Riding, while getting something, were also giving away something. Cr Hall said that the Mangaorongo Riding would also be giving away something like £4lO, and when the re-valuation of the county was made they would be giving away still more. As far as the benefits were concerned, so far as he knew the county had never been refused a grant. If they abolished the Ridings it would be for all time, and he took it that there would be no reversion to the Riding system.' Cr Hall instanced Mangaorongo Riding Bridge Loan in support of his oppositiori to the proposal. Cr Walters, when asked to speak, said he did not wish to do so at that stage. He had not heard anything said in support of the report. He had not heard any of the advantages that would accrue if it was adopted. He had only heard so far of the disadvantages.

The chairman said that one of the benefits' of the proposal would be the development and progress of the county. He also wanted to get the policy of the council defined, but if it was turned down it could be left at that. They had tried to get- ahead of things, but had failed. Mr Wallis dealt with the position of the feeling in the Honikiwi Riding and he went on to refer to the special rating areas as belonging to the dark ages. Any major work such as sealing that had to be done made the figures look a joke. The speaker then dealt in detail with increases and decreases. Any Riding improvements did not come out of rates. They would in future have to present the strongest possible case in order to get grants. If the county was to develop, as he believed it would develop, much more money would be required. Eighty-five county councils out of 125 had abolished riding accounts, while others went in for a system of roading accounts. The Main Highways Board looked more favourably on councils who had one account and by having one pool they were able to more readily meet their commitments. Mr Wallis said he believed that they would make some progress if they adopted the proposal. He believed that the break must come. Cr Walters said he could not understand the reference to the question of subsidies. If such was granted to a special area the security offered was that of the whole county. The chairman said it would apply to the lender, but not to the ratepayer concerned. Mr Wallis spoke strongly against small special rating areas.

Cr Jamieson said he could not go along to his ratepayers with a proposition which meant an increase in the rates. The proposed increase would grow to nearly £lO,OOO in ten years. If the rates were consolidated they would be put into one pool and they would find individual councillors trying to get the most out of it. In the ridings accounts the money was spent in the ridings. Cr Jamieson said he believed that he would be belittling the efforts of the councillors who had kept the rates down. The chairman in refuting that assumption, instanced the late Mr W. G. Kay, who years ago had expressed himself as being opposed to special rating loans. Cr Walters said that so far as the Mangaorongo Riding was concerned they would be against it. No one questioned the chairman’s sincerity or the truth of the statements made. If the whole of the rates went into one common pool the majority of councillors would decide where the money was to be spent, and the order of priorities. It might well be that the money would go to more backward ridings. In the Mangaorongo Riding they had ten miles 18 chains of main highways and Cr Walters went on to detail the mileage of miain highways in other ridings, together with the mileage of mooted highways. They were trying to get 9.1 additional miles of highways so that the ridings which had the greatest amount of main highways were the ones that could take advantage of getting the £3 for £1 subsidy. The ridings that would get the greatest value out of the pool would be those ridings which had the largest amount of main highways. The speaker went on to deal with the figures in the report in detail. When it came to the striking of the rates no councillor wanted the rates to go up and that factor had a steadying influence on councillors. Under the proposed scheme that restraining influence would not be felt to the same extent, and there would not be the same responsibility in keeping the rates down, and everyone would want to spend the rates in their own particular riding, and they

would not be so conservative z as in the past. The old scheme had worked out fairly well in the past, and they had always overcome any obstacles that had arisen.

The chairman said one of the difficulties lay in picking up the money. Mr Wallis referred to the Honikiwi filling, but Cr Walters said that could be overcome by the creation of a special rating area. Cr Grierson said he realised the importance of more main highways and he believed in their great advantage to the county generally and because of that Honikiwi was prepared to put those advantages at the disposal of the county as a whole. Cr Wynyard said that since being on the council no one'felt a greater sense of frustration in regards getting big jobs done, but he did not think that the proposed scheme was the solution. His position on the council was due to the fact that his area needed a representative who would do his best for an area not so highly developed as some. Cr Rothery, as the’ mover of the resolution, said he had done so in the interests of the whole county, and he expressed regret at what he tetmed Cr Walters’ biassed attitude.

On the resolution being put, it was defeated on the voices.

On the motion of Cr Walters, the engineer was asked to bring up to date a report he had prepared on the main roads in the county. The engineer said he had done so some years ago, but the council had not agreed with it. “I suppose you want me to give it the new look” said Mr McKenzie, with a smile.