The Daily News. THURSDAY, SEPTEMBER 18, 1924. A BLOW AT LOCAL GOVERNMENT.

Taranaki Daily News, 18 September 1924, Page 4

The Daily News. THURSDAY, SEPTEMBER 18, 1924. A BLOW AT LOCAL GOVERNMENT.

The logical conclusion to be derived from the remarks made in the Upper House last week by the Hon. C. H. Izard, on the subject of borrowing by local bodies, is that not only are they unfit for the performance of their duties, but that the ratepayers are so imbecile as to need protection against themselves. Such a conclusion is by no means flattering to the public men of New Zealand who spend their time (often at great personal and business sacrifice) in the service of the community, doing the work which has been delegated to them by Parliament, and having to find the necessary finance involved therein. The particular grievance that appears to be ranking in the mind of Mr. Izard seems to be that four millions out of thirty-seven, which represents the total indebtedness of the local bodies of the Dominion, obtained from the Advances to Settlers Department, and that money “would have been far more usefully applied had it been used for settlers and not for municipalities.” The argument is one that not only is open to controversy, but it has all the force of a most undesirable move to set the country against the towns. If Mr. Izard has ever served upon a local body he must know very well that both the ratepayers in the urban and in the rural districts are directly interested in borrowing money in. order to supply' the needs of the people as a whole; also that the raising of loans is a matter of much difficulty, and at times impossible. The idea of protecting ratepayers from themselves is one that could hardly be expected from any other source than from the Legislative Council chamber. It may reasonably be expected that the ratepayers of this country will treat Mr. Izard’s estimate of their mental powers with the contempt it deserves. Local bodies do not formulate loan proposals merely for want of something better to do, nor do ratepayers sanction loans just for the pleasure of having to pay the interest and sinking funds thereon. There are very few cases where exception can be taken to the objects for which this borrowed money has been applied. Moreover, there is even justification for the State Advances Office providing some of this capital for improvement and developments desired by the settlers. Distinctive criticism like that of Mr. Izard’s is all too common; it does more harm than good. If those few who concur in the honourable gentleman’s peculiar views devoted such energies as they possess to the business of demonstrating how local bodies can carry out their duty to the public without borrowing, or the source from which loans can be obtained without stopping it from flowing into some other useful channel, they would be conferring a benefit on the whole community. It is to meet, the growing demands of the larger centres and towns that a very large proportion of the borrowing is due. New Zealand is a country in- the making, so that necessarily a heavy expenditure has to be incurred for the build-ing-up process. The Government has ample proof of this fact in connection with the carrying out of public works, and it has to be remembered that the part taken by public. . bodies in providing facilities for the people is an important factor in the democratic principle of Government by the people for the people, and that if these bodies were not in existence, the duties they perform would have to be discharged by the State. In advocating an official control over the borrowing powers of the local bodies who administer what may be termed local affairs, Mr. Izard would apparently have the country overridden by bureaucracy, an evil that is already too much in evidence. Surely, common sense would indicate that those who are on the spot and have to pay for all the facilities procurable by borrowed money, are in a far better position to estimate and carefully weigh all schemes involving expenditure for the benefit of the people coming within their province. The expansion of our cities, our towns and rural districts, and the increased population and prosperity of the country are all factors in having to raise loans, while the provision of .hydro-electric power, tramways and facilities for shipping all contribute their quota to the need for raising loans. It is unthinkable that, the development of a country like New Zealand is expected to stand still for the need of imported capital, and it is absolutely impossible to provide urgent requirements out of income. There can be no doubt that excessive expenditure out of loan money should be rigorously prevented, but there is no evi-

dence at present of such a deplorable position existing. So long as loans are actually a necessity, and provision is made for their automatic liquidation, it may be contended that, if local government is to continue, it would be intolerable to have these aids to progress subject to the veto of a public servant or a board created for the purpose.