SUBSIDIES TO LOCAL BODIE.

Dunstan Times, Issue 956, 13 August 1880, Page 3

SUBSIDIES TO LOCAL BODIE.

In the House of Representatives on Friday, Mr Barron directed attention to a motion standing in his name re the withdrawal of subsidies to local bodies which had lapsed. He concluded by moving that these subsidies be paid up to the end of 1881.

Mr Pyke said that he could see no reason whatever why Government should delay giving the House information on the subject of its intentions regarding subsidies. The present state of matters was exercising a most injurious effect on the Colony generally, as local bodies were, in view of the present uncertain state of matters, debarred from prosecuting necessary works. Until the Financial Arrangements Act was repealed, the subsidy would have to be paid. ~ Mr M ‘Lean asked where the money to. pay these subsidies was to be got. There was a deficiency of L 225,000, and if they added L 275,000 for subsidies, that would make a total deficiency of 1500,000. The country could stand no more taxation. The Hon. Major Atkinson said that if the motion had been coupled with a proposal to doable the Property Tax, then it would have been worth while discussing, but with an empty exchequer it was impossible to find the wherewithal to pay a sum of L 300,000. It ill became the member for the Duns tain to make the remaks he had made, seeing he was Chairman of a County in debt to the Government. It was no breach of faith on the part of the Government, the suspension of these subsidies, as fair warning had been given them Local bodies were part and parcel of the Government of the country, and it was quite impossible to meet the demand for these subsidies unless there were more taxation imposed. Last year they had full notice that these subsidies would be stopped. There was not ns a matter of fact any subsidy due up to June next, the same having been paid up to the 30th June last. Ho regretted the necessity for stopping these subsidies, but he did not sympathise with those bodies who had entered into large engagements oh the faith of these subsidies, as there was timely wartiing given of their probable suspension He advised that the motion should be withdrawn, as the payment of subsidies simply meant additional taxes.

Mr George moved the adjournment of the debate.

Mr Pyke, in speaking to the adjournment, said there were L 300,000 of estimated land fund, and that was a fund out of which the subsidies could he paid without the necessity of going to the consolidated revenue at all. It was a mistake to say therejjhad been no breach of faith in the matter. Under the Financial Arranger ments Act the Government aud Parliament undertook to pay those subsidies for live years, aud in virtue of that the local bodies were justified in entering into contracts in anticipation of subsidies being paid until the expiry of that time. He denied that they had had fair notice that subsidies would be suspended, as the notice given last year was accompanied with an assurance that other satisfactory arrangements would be made tor these bodies. He would strongly advise them to take their financial proposals aud get them re-modelled. He hoped the motion would be withdrawn in the meantime, until the whole of the Government proposals ro local bodies was before the country. Both motions were ultimately withdrawn.