LOCAL BODY FINANCE

Wanganui Chronicle, 26 January 1948, Page 4

LOCAL BODY FINANCE

A BRIEF COMPARISON Something in the nature of a comparison between local body administration today and what it was some 30 years ago was made at Maxwell on Saturday by Mr. T. Dix, retiring engineer of the Waitotara County. Mr. Dix said that when he first was appointed to his position as engineer the county could work on overdraft as much as it liked. Some councillors, not being businessmen, thought that was a good idea—to keep rates down and keep the overdraft up, pay a little more to the bank and use as much borrowed money as possible. “Then the Government took a hand,” Mr. Dix continued, "and the counties were told that they had to live within their means. They could only borrow according to what revenue they could obtain. The bank would advance them money against rates levied.” Speaking of the Waitotara County Mr. Dix said that some 14 years ago the loan indebtedness had been round about £40,000 and that had since been reduced to something like £15,000. That reduction was due in large measure to the guidance of Mr. Morrison as chairman. When he (Mr. Dix) had been appointed engineer the roads were in a bad state. He had been asked to give an estimate of what it would cost to put them into shape. His report was that the rates would have to be raised to produce an aggregate of £lO,OOO. The county raised the rates accordingly—round about 1919. Then, when the slump came after World War 1, the county, by prudent financing, had a surplus of £6OOO. That enabled the county to reduce the rates to £4OOO, and it got through that lean period. The rates had since been raised gradually to £6OOO, to £BOOO and they were more or less stabilised at between £BOOO and £lO,OOO. In effect, they were £lOOO less than 10 years ago, and the cost of every item of expenditure had gone up by leaps and bounds. Mr. Morrison, replying to tributes paid to Mrs. Morrison and himself, said that the Waitotara County owed a great deal to Mr. Dix. The roads had improved under his direction, and during the slump period he had conserved the funds of the county by holding the dual positions of clerk and engineer. Mr. Dix is to retire shortly, Mr. Morrison said, an ch it was a coincidence that he (Mr. Morrison) and Mr. Dix were leaving the county service together.