COUNTY OVERDRAFTS

Dominion, Volume 15, Issue 42, 12 November 1921, Page 12

COUNTY OVERDRAFTS

THE NEW BILL DISCUSSED MAXARA COUNCIL’S VIEWS The ' proposed new Local Bodies’ Finance Bill is occasioning no little concern to members of local bodies, whose finances have been seriously affected by the prevailing tightness of the money market. The members of the Alakara County Council devoted some little time to discussion of the subject yesterday. Councillor E. AVindley said the proposed new Bill had evidently been drafted by someone who knew nothing about the requirements of public bodies. The clause which stipulated that local bodies could only obtain an overdraft up to the amount of the rates which were outstanding lie characterised as ridiculous. The Alakara County Council had in the past carefully safeguarded their finances, and had taken the trouble to- see that the rates were collected. They would have no rates outstanding at the end of the financial year, and if the proposed Bill became law they would be unable to get one penny of overdraft. How, he asked, wero they going to carry on ? Tt almost tempted them to neglect to collect their rates, in order that they might obtain a good big overdraft. Tlie chairman (Councillor Bryant): "The Government have clipped our wings to such an extent that they have not left us a feather to fly with.’’ Councillor Bowler said he did not see that by neglecting to collect the rates they would be any better off. Councillor Windley: It would enable us to obtain an overdraft. If we have no rates outstanding we will not be able to obtain a penny. Councillor Bowler: "How will the City Council get on if the new Bill becomes law ?” / The chairman: "That is fhpir funeral, not ours." He added that they would simply have to close down until tho next year’s rates were collected. Thee lerk suggested that they might leave the Counties’ Association to fight tho matter out. This diplomatic suggestion was acted upon, and the council proceeded to the next business.