COUNTY FINANCE

Timaru Herald, Volume CXLIII, Issue 20640, 1 February 1937, Page 3

COUNTY FINANCE

MACKENZIE COUNCIL’S RATES “FACED WITH A SERIOUS POSITION’’ “In view of the greatly increased expenditure in the County through higher levies to the South Canterbury Hospital and Harbour Boards and the new scale of wages fixed by the Arbitration Court’s award, and further, through losing road mileage which is given over to the Highways Board we should consider the advisability or possibility at our next meeting, of a reorganisation and reduction of the Council staff,” was a motion moved by Mr P. Kidd and carried at Friday’s meeting of the Mackenzie County Council. During the discussion on the motion, which arose out of a statement in the report of the engineer (Mr D. Jeune) to the effect that the Council should give serious consideration as soon as possible to its estimates for the coming year the chairman (Mr C. J. Talbot) stated that the Council was “faced with a very serious position.”

With regard to the coming year, the chairman said the Council would have to seek some general line of action. The rates to be collected this year would total some £lO,OOO, but he remembered past years when £13,000 had been raised. The question was whether the present staff was to be kept or the roads allowed to deteriorate. Even when the last boom had been on—and he thought the country was entering another boom—the Council had not taken the proper steps to safeguard its position. Rates had been reduced when the depression was felt and the Council was now feeling the effects of that action. As business men, members of the Council could not allow the roads to deteriorate. “Rates Must Increase” “If we are going to keep the roads up,” the chairman proceeded, “the rates must increase.” Already expenditure had been reduced by nearly £7OOO. He could not see how anyone would be businesslike enough to suggest further reductions. “As far as I am personally concerned,” he said, “I would rather resign my seat on the Council than see the roads deteriorate. It is rather an irksome duty to tell ratepayers that rates will have to increase.” If ratepayers were asked to put up with worse roads, however the request would not be honoured. “I think every member of the Council realises that the position is not so satisfactory as it should be,” stated Mr P. Kidd. At the last meeting he had commented on the matter and suggested that something should be done to meet it. Ratepayers would certainly object to an increase in rates. No reflection could be cast on the engineer. Every member of the Council was continually asking for improvements in his particular part of the county, and the engineer was forced to accede to the requests. When it came to the end of the year, the engineer was in a position when he had to meet all the slings and arrows thrown at him. “That is a responsibility which should not be put on him,” he added. “We are the directors. When we make all sorts of requests for improvements, we have got to realise that they cost money. Such a position has been created now and we will have to face up to it. We have either to reduce expenditure or increase rates.” The chairman: We might have to do both. Mr A. F. Campbell said he had to thank the chairman for his review of the position. “I have given the matter much consideration,” he stated, “and the rate we struck last year, even though it was greatly opposed, is not going to meet the position. I thought that all we could do was to reduce the staff but I asked myself what staff we could cut down, and I could not find any. I can’t see where we are going to retrench. We need all the staff we have and all the gear we have. When the slump came we were able to retrench because there was a reduction in the traffic. “The only thing we can do ” Mr Campbell continued, “is to increase rates. We are all going to be in a better position to be able to do it.” Back country men, for instance, would be able to pay greater rates without hardship. He was sure ratepayers would realise that members of the Council did not like increasing rates because they had to pay them themselves. “Where are we going to start retrenching?” he concluded. “Just ask yourself that question.” Mr W. R. Davison: “For the last two years we have met here. We have been coming along for the last two years and we have done nothing until it has developed into a position which I don’t mind telling you I regard as serious.” At the end of every 12 months months the Council was increasing rates. That policy was the easiest way out, but he did not agree with it. “I am in favour of reducing the staff, and very considerably,” he added. “Position Serious” Mr George Murray agreed that the position was serious. Members would

have frequently heard him asking for better organisation. Mr A. B. Mackenzie said he agreed with Messrs Kidd and Davison. The Council’s expenditure was too high. The chairman: We have reduced our expenditure by £6OOO or £7OOO. Mr Mackenzie: It does not look like it by the bank balance and that is what people go by. I think you will have to do something about reducing the staff and probably put the rates up. The chairman said that since the Council was bound by an award to pay certain wages, it would have to see that every employee was efficient. Consideration of families and other matters would weigh less than they did in the past. Mr Kidd stated that by carrying his motion, the Council wou’d not be committed to anything. The engineer (Mr D. Jeune) said he was pleased to hear Mr Kidd’s motion. It would not be absolutely necessary to settle the matter at the next meet ing. If employees were put off, the Government would want to know why, and if the Council said its rate bill was too high, the fact that other local body rate bills were higher, would be pointed out. The Council would have to watch and not make a laughing stock of itself by doing that. Mr Murray considered that the matter was sufficiently serious to warrant another meeting in a fortnight’s time but the suggestion was not adopted. Mr Kidd: We will certainly make i laughing stock of ourselves if the bank says some fine day, “Your credit is stopped.” That is what I am afraid will happen. On the monthly financial statement, a debit balance at the bank of £10,453 14/1 was shown, and the day’s paysheet amounted to £1529/17/8. Receipts for the month totalled £3976/17/.