LOCAL BODIES’ FINANCE

Wanganui Chronicle, Volume LXXVI, Issue 18329, 12 November 1921, Page 2

LOCAL BODIES’ FINANCE

PROPOSED LEGISLATION CRITICISED. SOME INTERESTING POSSIBILITIES. That there are some interesting possibilities in the Local Bodies Finance Bill was endorsed by a discussion at the meeting ot the Wanganui County Council yefeterday. The Minister o£ Internal Affairs (Mr. W. Downie Stewart) stated ill regard to the proposed Bill:—■

That all rates and revenue would have to be collected before March 31 to keep the county fund in credit, and that no allowance would be made for uncollected rates.

In reply the County replied by letter that it would be almost impossible for any local body to carry on particularly as during the next year or two rates would be hard to collect. Even if all the rates were collected it would be impossible to carry on if they had a bad flood season like two years ago when the damage was £6OOO and caused the county fund to be In debt on March 31. The Bill made no provision for unforseen flood damage.

In reply the Minister stated that the County could raise money by loan and that a county could construct work in anticipation of floods. The County could also by way of overdraft borrow up to the limit provided in the Bill to meet sudden emergencies but such overdraft would have to be practically wiped out at the end of the financial- year. The County Council next communicated with the Minister that flood damage could not be estimated in advance and that the provision could be made for possible slips. It meant that if slips occurred as was previously the case to the extent of £6OOO it would mean that all labour would have to be transferred to remove the slips and that other work would have to stop otherwise the account would be over the limit on March 31. To take steps in advance to prevent steps was impracticable.

The Minister replied that the views would be carefully considered. When the matter was discussed the chairman said that it was evident that the Minister was not conservant with county matters. If a county finished up £5OOO in debt the councillors would be liable.

Mr. Allen: In that case you won’t get many councillors. The chairman said if the Bill went through Parliament they would have to dismiss every man from the engineer downwards. Cr. Broderick expressed the opinion that the Bill would not go through Parliament.

The chairman said that he did not think they could do any more, but they had recorded their protest.