COFFERS EMPTY!

Waipa Post, Volume 41, Issue 3187, 12 August 1930, Page 5

COFFERS EMPTY!

WAIPA COUNTY FINANCE.

CLERK URGES EXTREME CAUTION.

Waipa county councillors received something of a shock at Monday’s meeting when the clerk (Mr T. Grant) presented a very comprehensive statement of the financial position. He stated that at date the county overdraft was about £17,000. He advised a slowing-up of expenditure until the position had been improved by rate payments coming in. Government grants had not been coming to hand as promptly as in the past. At Ist April the credit balance was about £BOOO, and, since then this had been wiped out, and the overdraft had had to be called upon. The peak of overdraft in the past five years had been about £12,000 at this period of the year, whereas now it was up to £17,000. Since the main highways system had come into operation the Council had been inclined to authorise more work, and thus encroach on the finances, especially in the period each year from April to the end of July. At that period little money came to hand, due to farmers receiving much smaller butter-fat cheques than in other months of the year. The Council had to pay higher interest on overdraft this year. The Highways Board and the Government subsidies still to come totalled about £II,OOO, and if this had come in as expected the position would have been eased. But, added Mr Grant, very little rate money could be expected until about November; that was why he urged special caution for the next few months. The money from the Government would surely come to hand, but the delay was cramping the activities of the Council.

Mr Civil explained that about £4OOO had been laid out on Te Rore waterworks scheme. Other smaller -sums enumerated accentuated the matter. Little matters had been questioned by the Department’s inspectors, and all these'entailed delay. His department had been three or four weeks late in making application for the grants and subsidies, but this should not have been responsible for the long delay. Cr Johnson suggested that there was another side to the question. The main highways generally were being kept in very good repair, except the Pirongia-Frankton highway and the one between Pirongia and Te Awarnutu. The cost of maintenance was increasing until now it was probably exceeding the amount of subsidy from the Highways Board. The County Council could not keep on at that rate, yet the roads had to be maintained. Cr Peaoocke: If we do not get our subsidies we will have to hold up our work, that’s all. The chairman: We are doing our best, and the Highways Board is not meeting its obligations. The clerk quoted figures to show the abnormal increase in monthly expenditure. The chairman considered the Highways Board was not quite “ playing the game ” with the Council, which was paying out all the time, and the subsidies it was earning were not being paid.

Cr Peacocke said if the subsidies were not paid promptly the Council would have to hold up the road improvements. It could not go on. Cr Johnson said the position was fairly serious, and would have to be carefully watched. The clerk said it was very evident that money was tight everywhere at present, and the delay in receipt of one amount affected many others. Meantime the Council’s overdraft was creeping up steadily. He had made representations to the authorities a week ago, and the result was a payment of £3OGD"to relieve the position. The chairman considered a resolution of protest should be carried and forwarded to both the Government and the Highways Board.

The Clerk was instructed to write to the Highways Board protesting at the delay and pointing out again that such delay was seriously embarrassing the Council’s work.

Accounts totalling about £4600 were authorised for payment.