Minister orders spending cut

Press, 9 April 1979, Page 28

Minister orders spending cut

PA Dunedin Local bodies have been told to cut spending by the Minister of Works and Development (Mr W. L. Young). Mr Young told the annual conference of the Municipal Association in Dunedin that he had to cut back spending, and the same message was equally appropriate to municipalities. “Throughout the country we have to live within our available resources. It is a matter of cutting our cost according to our cloth,” Mr Young said. “While we would all like to be able to do more, we will just have to disappoint some people if rates, and taxes for that matter, are to be contained. “I am sure none of us likes saying no. but every project requires the closest scrutiny before it can be sanctioned,” he said. Nine out of the 14 conference remits sought financial assistance from the Government, Mr Young said. Tax sharing and an increased share of petrol tax were some of the suggestions. “Municipalities are not in-

sulated from the effects of inflation and rising costs. Neverthless, we must not lose sight of the fact that there is only one source of revenue, and the burden falls back on individuals and companies, both of which already consider the demands on their incomes are too high.” Mr Young promised that New Zealand’s reading system would not languish because of a cut-back in spending. The major legislation this year involving municipalities was the review of the Public Works Act, Mr Young said. He said that local authorities would be allowed to see the bill “if time permits” for some preliminary discussion. “Every endeavour will be made to have a new act passed this session, but procedural matters must be thorough.” Mr Young said.