COUNCIL’S DILEMMA

Taranaki Daily News, 14 February 1933, Page 9

COUNCIL’S DILEMMA

ACTION TAKEN BY BANK. NO FURTHER OVERDRAFT. Gisborne, Feb. 9. The financial difficulties of the Matakaoa County Council were the subject of further correspondence at the monthly meeting at Te Araroa and among the motions passed was one that efforts be made to have the bank overdraft arrangement, which is now terminated, renewed for the present financial year and to have interest charges on the overdraft suspended. The Minister of Internal Affairs wrote acknowledging a letter conveying the council’s resolution urging him to make provision for payment of the county clerk’s salary, otherwise the office would be closed. He was unable at present to say what could be done. The manager of the Tokomaru Bay branch of the Bank of New Zealand advised that the head office was not now prepared to allow any debit operations on the county fund account until fresh proposals were submitted and approved. He asked to be advised to what extent the council was at present functioning and what further steps the council proposed to take to further judgments it had obtained for outstanding rates. After a full discussion the following; motion was carried: “That the Minister of Internal Affairs be forwarded a copy of the bank’s letter with a letter from the clerk urging him forthwith to make representations to the bank for renewing the overdraft arrangement now terminated until the close of the financial year and for suspending further charging of interest on overdraft for at least 12 months, or until such time as the overdraft is sufficiently reduced to enable drawings for current needs of the council. That Mr. K. S. Williams, M.P., be forwarded a copy,of the correspondence.” In connection with recent actions for the recovery of outstanding rates, the council’s solicitors forwarded a further statement of account with them and stressed that the Department of Internal Affairs should again be urged to furnish the council with sufficient funds to enable it to reimburse them for the amount they had paid out. The council decided to reply that it had done everything possible toward having the department provide for a reimbursement- to the solicitors and that it could only suggest that the solicitors take the matter up with the department.