Hokitika Guardian & Evening Star FRIDAY. MAY 11 1917 COUNTY FINANCE

Hokitika Guardian, 11 May 1917, Page 2

Hokitika Guardian & Evening Star FRIDAY. MAY 11 1917 COUNTY FINANCE

The Treasurer's report at the County Council meeting this week supplied in very interesting form a review of the County finance for the past year. The financial year closed on 31at Marob, and the report which was eirenlated among members two or three weeks later gave an analysis of the year’s figures. This was the more useful and informative, because it is usually some months before the annual balance sheet oan be published. In the tabloid statement of the year’s accounts published by way of report on Tuesday, the ratepayers as well a*, councillors had the opportunity of studying the year’s financial work. The main fact disclosed was that for the year the Counoil had retrieved its position by £540. Very few local bodies nowadays exist without an ample overdraft, and that of the County Council at the close of the jear was £3,839. There would, of course, be assets to cover this amount, for under the existing law the local Council may not have an overdraft at the close of the financial year in excess of its then outstanding revenue. There is thus security to both Council and ratepayers that unlimited extravagance may not be indulged in without serious penalties being incurred for overstepping the legal expenditure. This is a very proper safeguard for local body expenditure, namely, that each institution shall contrive to live within its meats, and this is a rule which might be extended and imposed in all forms of local government. Were it so we would not have the extravaganoe and excess of expenditure which marks the position of one looal body unenviably prominent at present. In the County review we have before us, the figures published show

both where the money comes from and where it goes. The divisions into the four headings under which expenditure has to be met distinguishes as to the various claims upon the Exchequer, and it is remarkable the many calls there are on a looal body outside the demands of mere roads and bridges. The latter by the way, if we include the general liability for old debts, absorbed £4,544 oat of a gross revenue of £8,838. This is a large proportion in the light of the fact that £2,738 had to be found for expenditure under various acts whioh impose all sorts of liabilities upon a looal body, apart from roads and bridges. The rates collected reaohed the good round sum of £4,125 so that by expeuding £4,544 on roads and liabilities therein, the Council has done well for the ratepayers. The latter sum, of course, did not inolnde the £1,831 spent out of special grants, which also went on to the roads. The figures therefore disclose a generally satisfactory state of affairs, both in regard to revenae and also to expenditure. One interesting table in the statement is that which analysed the revenue from the respeotive Hidings. It is perhaps a surprise ts find the Rimu Riding at the top, with Toiara district next. These two districts, it appears, have derived special assistance from timber royalties, but th's a class of ravenue whioh is not enduring, as there oannot

be a second otop of timber to look to* Okarito Riding has done weil to occupy third place, and Kckatahi stands foortb. These two districts have a more permanent financial future ahead of them because the rateable value of these farming districts oan never go back, but must go on increasing. The mining districts have not the same assurance for the future with an industry which at the best has bnt a brief life, Still," pastoral pursuits are expanding, and this must add year by year to the capital wealth of the ’and, eo that generally rateable values must be an ircteasing amount. The real value of the Treasurer’s report from a Council point of view, is the information sup. plied in regard to the Separate Rid. ing Accounts. This method of ar’mimetration is clearly a sound one, but it is not perfect unless it aims at making each Riding live within its own means. So far the districts have done exceedingly well, with the revenue at their disposal, and the excesses have not been ser.oas. It has been possible year by year by a system of temporary borrowing from riding to riding to keep within reasonable limits. But ibis form of adjustment should not be regarded as a definite precedent. There has been, probably full and ample reason for a Riding temporarily overdrawing its allocation, but were the excess due to extravagance, the Council should at once enforce the provision of the Act whereby differential rating is applicable. The statement not only discloses the actual financial position of eaoh Riding, bat the result is some measure of tbe care and attention devoted to the ratepayers’ interests in condnotiug tbe business on sound financial lines. Tbe evidence is very much to the credit of ihe Oonocdlo S who have done exceedingly well with all the calls upon them. Weetlvud -County is one of the largest in the Dominion, and with settlement scattered as it is, it is not possible to maintain communication with ail parts except under considerable cost, Tbe fact that thß County Conned has achieved the record it has, speaks well for the general administration, and particularly for the conscientious work done by the road staff. Altogether the position in tbe face of tbe many difficulties presenting themselves is very creditable to the mamb6rs of the WesTand County Council.