RIOING FINANCE TROUBLE IN THE STRATFORD COUNTY. LEGAL OPINION.

Taranaki Herald, Volume LV, Issue 14011, 16 September 1909, Page 1

RIOING FINANCE TROUBLE IN THE STRATFORD COUNTY. LEGAL OPINION.

At the monthly meeting of the Stratford County Council yesterday Councillor Afarfell, by consent of the council, was permitted to reopen the question of the "alleged" indebtedness of the East ftfcttng. He said he had several reasons for asking the council to reconsider the decision arrived at at the last meeting. Since then Councillors Walter, Maxwell and himself had taken the trouble to get the opinion of Mr. Skerrett on the question, and that .fully upheld their contention. In fact, from what Mr. Skerrett told them, their position was stronger than they imagined it was. Mr. Skerrctt's opinion was as follows: — The provisions of section 128 of the Counties Act 1906 and section 145 of the Counties Act 1886 must be regarded as well settled. Tiic provisions in question provided that the whole income of the county should be apportioned in the following way, namely (1) In payment of the general debts of the county ; (2) in payment of contributions payable out of the county fund ; (S) in payment of the cost of constructing and maintaining all main roads and county roads and bridges and ferries on such roads, and (4) the remainder of ' such annual income should subject to the provisions of section 146 be apportioned among the ridings of the county in proportion generally speaking to the amount of general rates received from such ridings respectively in each year. Now it ia to be observed that what is referred to in subparagraph 4 of this opinion and in subparagraph 4 of section 143 is the balance of tbe net income after providing for all county expenditure' as defined by spctipns 1. 2 *Pd 9- It would be perceived that in «H counties where there are no road districts and where all the ridings are outlying, the expenditure on all the roads is a general expenditure, because what .would otherwise be district roads are in outlying districts county roads and are repairable by the county generally. Thu result therefore is that all expenditure in this class of county is expenditure payable out of the general rates and is a general county expenditure and the sum apportioned to each riding is a .proportion of the general rates which remain after providing for all the expenditure within the county. Now as to the meaning of section 146. It is to be observed that this account commences with a civdit — i.e., that to the credit of this eocount is placed tbe proportion of tho net balance of general rates allotted to such riding and to the debit of such account would be placed expenditure <n works in such ridjng, which exi>onditure is not a general county expenditure. As I h,ave said, \n counties whc;o tlje ridings »re aty w\tlyin,g districts it is difficult to cotioeive of any or at any rate any special expenditure within 'the riding. Tiw» object of keeping such account and the effect of keeping such accoqnt is th»t if the balance is to tn© credit or debit of a particular riding, that should be taken into ooi'-> sideration \H tho adjustment »\\<\ »}>• portionment made hetw?«n the ndiup. of tho n"t balance of general rates <n pacb yea?. |t follows from what I havo said that the ao-callrd domestic accounts aro not. in the least degree binding either upon the ridings or upon *»o county, It is perfectly clear that they have oeon prepared upon a completely erroneous oasis aud certainly do net bind the county or ridings. Tho principle on which these domestic accounts havo been kept is quite mistaken, .ilthough I am aware it is a common in i - take in the keeping of county account. namely, to debit to each riding tin' whole' of the general county <-x|m^i !iture within the riding and a proportion of the general liabilities of the touix '. As I have explained, strictly speaking the county is entitled to remodel 'is riding account upon the true ba.Ms. hut it is clear that this would be, if not impossible, practically Xnr would, it m a{| prp.lia.h.ilit.Y wiit tl"'.' jmri>omw> pf \\m' \\\»)ur\\y of vh«* pduih il. Morw)Vf<r w>f> alivration in the oriu"i.tl Kaat Riding by which it was constituted two ridings, namely, the East ami Mangaehu Riding (after a portion «;is .cut out to form the Whanga Count, O would make it very difficult to prep.-n-accounts. It is alse to be observed tliat there is no provision for an adjust menl of tho riding accounts upon tlio altei.ition of the boundaries of the ii;liiu, and no such adjustment ithich hits Ix-'wi made by the county would bind the pivHont riding. But on the whole it iquito clear that the county would find it impo«»jb,ln. Hf prsctically so, to remodel its ricririg accounts. The result therefore is that the domestic accounts arc not binding upon Ihe ridinu. mid that the remodelling of the riding accounts would be wholly unpractical)!'-. It is, of coura«, perfectly pleur (from what I have tUa^ tub transfer of thfi gr«ate,r. p,art of the overdraft of the Stratford County Council and the debiting to the riding accounts of compound interest is w^qlh 1 without any statutory authority. The; domestic accounts may therefore be wholly disregarded and any consideration urisiiiu: out of the riding accounts may also 1 c disregarded, because \t is clear that the faking of the ap9ou.n^e \\pon tho true prjiipiplo would, if i% were possible, rosuit in a v«ry different condition of things, with the result shown by the domestic accounts.

Continuing, Councillor Marfell said it would be seen that this opinion quite upheld what they were contending for,

antLC'ey nieaiit to see it through. It

v. as -i ni.ittcr ol w(in<ler to him why the ccuiH-i! woiil'l not submit tho question to the arbitration of someone who mi ;h< tio }.^n«ed upon between the two p.irli'-s and abide by the decision. In the previous instance they had named a jk-. ,Un, !,»,( „1-n- uot bound to it. 11 tin-, ul^.u l^. «<•).( to rhc Supreme Court ;L u.-i.ll .X.ii j: biii bill, and it was <|tnl'' 1 .'s i\!e 1' ,\i)ii!l even then have

.v X' - i! '1 ( " ii't o! Appeal because it \.c. .. ,ti- ,ti . not biiiii.ly affectinK .■l;' h! .....; 1 C "iii 11 ty but practically tJi.- \ de 'i i!,( < i,x ■ ii'-s between Taram' 1 1 • ni'ilnt r ti>n, for they were all w<r' ..'. •■ 'ii - i"« I'i'es as this coun- <". .'. .. J'"ii m . '!«' ('(inteiid< i d they were

('■> 1 i< i'l •!• i : 'Ut - u'l vt-ars a^o the li.im I!"! 1-!'1 -!' h?<\ ;•, i)i^ credit, and the e< ;i ■'i ! '' (hi i' • '»} th" money with(nil !-■>''!' "|.| interest lor it Now t' f ii." ■ ' ■! : m-m in difficulties he '• 111 1 ' ' '-I 11 t -se grounds it would hi- .•• 1 <\r t'-ni" t.> Ij.-il.-uice the accounts.

( ■ < ,'!oi ">i."\H'ol| said licfore the r* hum! (on. I I'-'ir^e this indebtedness to t't - r 'ij •; it jiinst hive a legal claim, rv.<\ el- «'iv 1-1 (- ]••)'! ti.it <rot this. They '-!1!! 1 ! i-i :r l :!i-;o this money to the ricli 1 j nil •"( 11! I'neiit. ,(' u'!(i!;»r Astburv sa id tho whole tiling irii - ny tin- thn-at to take leyal I'm" 11 di.iL- n':-.fn ':-.fi a t the council for \.y\>i\: • i' ;.>•'• •!■> poetic accounts. 'I'lii , ;,<»i. cviT, would not affect the rate struck or the legality of tho rate in any v, .- . '1 he ci until could still .■>i/iht «<i tin i-r rate it thought necessar» ior tin- ridnif:.

Tlio ('}).< iriimu failed to see what benefit waX ; 0111; 1 ; to result to tho East Killing. The present position had arisen from the very firoat consideration sho «. si to the iO.ct Hiding iv the pa.,t. Tin 1 w. lS a .solid fact. The council tould have asked for a revalua-/ tion of the F-iht liidin^ years ago, but out or' consideration for those who wero always pleading poverty the council had refrained from doing so. The council had allowed things to drift along on count y overdraft. •

Councillor Jiarfoll: And present settlors have yot to pay for it. The Chairman: Just as they have to pay all over the county. It is a very ordinary tiling for land owners to raise a loan on their property for making a road or bridge and so on to improvu the propei tv for sale, and then leaving the buyer to foot tho bill. It is an abomination not only in this county but in others.

After further discussion the council adhered to its previous decision that expenditure in these ridings be confined to, the wages of the staff at present engaged. Should any works of an urgent character be required they will be referred to the chairman with power to act.