LOCAL BODY FINANCE.

Waikato Times, Volume 110, Issue 18392, 28 July 1931, Page 6

LOCAL BODY FINANCE.

FUNDING OF DEBTS. PROVISION OF EMPLOYMENT. (By Telegraph.—Press Association*) AUCKLAND, Tuesday. Considerable controversy has arisen locally following the decision of the Mount Eden Borough Council to suspend payments, amounting to £8630, to the sinking fund for this year. This decision is opposed by the Sinking Fund Commissioners, who say that special validating legislation has been promised, but their view remains the same. A prominent authority on local body finance said to-day that it is apparent the position at Mount Eden and in other boroughs had arisen through the Inability of the ratepayers to pay rates, -thereby forcing recourse to borrowing by overdraft. Every local authority is being urged to keep Its public works going to provide employment. He suggested that it would be possible to provide for the position in a constitutional way. Legislation could with Justification be passed authorising the funding of all floating debts of every local body In the Dominion during the present depression. It would be sound in principle and real relief to local bodies, who would be able to continue providing useful employment, instead of being forced to . drastically curtail expenditure, as at present.