MUNICIPAL CONFERENCE

Waikato Times, Volume 94, Issue 14767, 5 October 1921, Page 5

MUNICIPAL CONFERENCE

PROPOSED LEGISLATION. OUTLINED BY SIR F. BELL. CAPITALISATION OF OVERDRAFTS. (Bv Telec-raph.—Press Association). WELLINGTON, Tuesday. "I do not want the Municipal Conference and all local authorities to agree that it is long past the time when we ought to live within our revenue," said Sir F. Bell to the delegates at the Municipal Conference, when informing them of the proposal of the Internal Affairs Department that legislation should be introduced dealing with the overdrafts of local bodies. As the law now stood a council could spend the revenue of two years in one, and many bodies had exceeded the overdraft authority so as to leave an incoming council practically penniless. This was what they wanted to slop. The Government wanted local bodies to abstain from borrowing except in anticipation of revenue, and to obtain loan money with the consent of the ratepayersThat would mean that at the end of the year they would owe nothing except the amount of revenue which bad yet to come in, and an amount equivalent to that in regard to antecedent liability. It was proposed that municipalities might borrow to pay this off without a vote of the ratepayers and ignoring all questions as to Whether the overdraft had been lawfully incurred or not. Should there he a difficulty in borrowing, then it was proposed that the overdraft be paid off by seven annual instalments." Sir F. Bell asked the conference to consider the proposals.