WESTLAND COUNTY COUNCIL.

Hokitika Guardian, 10 May 1921, Page 4

WESTLAND COUNTY COUNCIL.

'■TUESDAY, MAY 10th

TREASURER'S REPORT

Sir and Gentlemen, —Further to last month’s report'on receipts and expenditure and the allocation of estimated revenue for the financial year new entered upon, I beg to submit the following statement of Ridings for the past year, showing the amount derived from

THE YEAR’S ESTIMATES. This matter may now he considered. It is to ho regretted that the new valuation will not'be available, and in consequence the rate will require (o be based on the old valuation. The Council will ■have the levy for the charitable aid administration before it. The demand is still very high and will mean the maintenance of a high rating levy. East year the Council levied at nine farthings. It was hoped this would be temporary for the year, but as tile figures are revealed now I do not recommend a reduction beyond one farthing, thus making the new rate twopence in the £ capital value. On this basis the gross revenue for the year is estimated at £10,170, and the expenditure on works other than district roads within the separate Ridings, £7,076. This will leave a surplus of £2,‘9oo'for Riding expenditure.

lii considering the allocation of this amount, the repayments on account of last year’s adjustment ljave to he taken into account. Rimu advanced £1,350; Pillmans, £100; and Okarito, £100; total £1,550. This amount was distributed ns follows:—Stafford £IOO, Aralmra £3OO, Kanieri £550, Kokatahi £4OO, Okuru £2OO, total £1550, A statement of the Riding accounts, excluding the repayments above, was before you in last report. Embodying the both statements in one the position is as follows:

Cr. Dr. Hiding- Cr. Bal. Dr. Hal. Advance Advance. Not. Dillmans 203 100 Cr. .‘503 Stafford 104 100 Dr. 204 Aralmra 8 300 Dr. 292 Kanieri 11l 550 Dr. 061 Kokatahi 324 400 Dr. 721 Rimu 155 1350 Cr. 150 Totara 46 Cr. 46 Oknrito 119 100 Dr. 19 Okuru 200 Dr 200

Tlk* County, however, is now divided into three Hidings, and fusing the districts accordingly, the* following is the net position of the Riding Accounts:— Riding Debit. Credit Northern 193 Central (southern 170 f)n these figures the Riding accounts would show a net debit of 0249, and as a new system of districts is now to be taken into account, it is recommended this small amount be written off, and the three Ridings make a fresh beginning from zero.

Assuming that to be clone, there is nmc the allocation of the £2,000 to be considered and this brings us to a new difficulty. The Counties Act was consolidated and materially amended last year, arid'amendments yisorted alters the incidence of allocation. Under the 1008 Act, (Section 128) the apportionment was to he in proportion to the total income. Last year’s Act (Section 131) fixes the apportionment on the total income from general rates only. There is a material difference on the latter basis, as some districts provide large general revenue such as goldfields, royalties, publicans licenses etc., while other districts without mining or timber and fewer accommodation licenses, .have their .revenue more largely in rate’s. The difference in the allocation as between tjie former and the new system is, shown as follows: —

I venture to suggest that the amended section is not equitable in its application, and the fairer way would be to seek a further amendment to the section in question whereby a local body would have tho permissive right of determining by resolution whether the apportionment should be on “total income’-’ or “general rates.” No doubt tfierc • are differing conditions, and while ' jn-settled agricultural Counties the apiendment of last year applying to rates only might be fair, tho conditions in a County such as this with varied interests and industries returning what is practically direct revenue to a local body then all that local revenue should reasonaby ho taken into account. However, for the current year the basis of allocation null require to follow tho statutory direction, i.o. in respect to general rates only and the amounts available for the year for the Ridings accounts will, thus, be:— Riding. Allocation. Northern 550 Central 1047 Southern 1303 £2900 This will permit of an average expenditure of £242. Last year the allocation was £230, and the actual expenditure £2555. As the average monthly expenditure was £213, this year’s figures show a little more elasticity, and in tho aggregate the general expenditure should suffice, but there will, no doubt, be a stringency in the Northern Riding before the year is through. t

Last year the expenditure was: Northern £627, Central £1142, southern £786. It will be a matter therefore for somo mutual assistance so far as the current year is concerned, with an adjustment later which will be more easily arranged if the amendment to the law above should be recommended by the Council and carried into effect by Parliament.

TREASURER’S SUPPLEMENTARY REPORT.

There are some aspects of the Charitable Aid levy which I feel it a duty to bring before the Council for the consideration of members. As a result of the request from tlie County Chairman and with the insistence of some of the representatives of the County ratepayers, a slight reduction has been made in the levy as at first proposed. The reduction in respect to this Council is from £3113 first demanded, to £2781 now asked, that is from £259 per month to £232 per month. Last year the (Council paid at the rate of £285 per month. In the aggregate there is relief to the extent of £629 for the year. By the reduction of one farthing on the County rate the relief to the ratepayers will be £Bl6, the County Fund generally will therefore, have to make up a deficit. Last year’s Charitable levy was the highest on record. In the 37 years the Council has been contributing to hospital and charitable aid administration, the pouncil has had to find no less a sum than £43,'075 6s 5d or a yearly average of £1164 3s lid. Contrast this with the £2781 now asked and it will be seen how enormously the cost has risen.

With regard to the amended figures on which the Council is asked to pay, it is a question for members to decide whether under all the cicumstances the pruning knife has gone far enough. Per mit me to refer to some of the details.

Westland Hospital. The first demand was for £5856, now reduced to £5450. Last year, however, the institution cost £6OBB, loss £2269 recoveries, a net of £3820. This year £IBOO is added for capital expenditure. I venture to suggest that the £425 for drainage should be held over or seeing that it is permanent work, should be taken out of the building fund; the same applies to the £IOOO extra for the laundry, in respect to which work the Board already has taken £750 from the building fund. Relieved of those items of £1425 there would be material relief to the local bodies —particularly this Council.

Honiara Hospital. This cost last year £2529 less recoveries, £1322, or net £1206. It was proposed to levy for £I2OO, but that is now reduced by £2OO. Tf this reduction is possible at Honiara, a much larger reduction than £4OO is possible at the Westland Hospital where the net demand is nearly five times larger. South Westland Nursing. This cost £333 last year and the fees received were only £l3. A capital expenditure of £I2OO is now proposed for a building at Waiho Gorge to which voluntary contributions of £4OO are estimated, plus an estimated Government subsidy of £4BO, or a total of £BBO, which leaves a net sum of £320 for the local bodies to find. The building then has to be equipped and carried on at the recurring annual expense of the Board for which the local bodies have to find more than half of the money. In view of the persent cost of material and the financial stringency, together with the small call on the services of the nurse so far as a. centralised institution is concerned, the point arises whether the time is opportune to undertake this extra expense, and it is for members representing the ratepyers to determine with a full knowledge of the position. A review of the other figures of estimated cost would show possible reductions also, and it is a question for the Council how far this should be raised now, either by suggesting a conference with the Hoard for an amicable adjustment, or of asking for a Commission to decide the equities of the position and the reasonableness of the high expenditure at this juncture. A new departure and unfair request is being made also in asking for local bodies to pay up the levy by 31st T)ec. This means the Council would have to pay £309 per month for nine months, instead of £232 for 12 months. In the past the Council has been exemplary in its regular payments, while other local bodies have paid at their own sweet will. Tt would appear that the Council is to be penalised for its past promptitude. A protest can be justly urged against the calling up of the full levy by December 31st. 'Pile new rate cannot bo struck for some time, and five or six months of the financial year will have gone by before any material amount is paid in. Tt will strain the I Council’s finances unduly if the new system of payment is to be enforced. It should l)o quite unnecessary to stress the financial position, but Councillors must bear in mind the grants are being curtailed if not stopped. Certain urgent works were approved and commenced as the Labor was available, but the Department now with-holds the authorities. The money must be found by the Council for the time being. This will place an extra strain on the funds meantime, and render the position less elastic, so that there is urgent need for the charitable aid payments to be reduced to the lowest possibe %ure this year, or the Hospital Board in common with other creditors, will have to go short and await payment. This latter contingency ias not fair to the Board’s employees, but the Board members should realise the position from the outset.

Youro respectively, I). J. EVANS, Treasurer

each district:— £ s d Dillinans Hiding 2010 0 10 Stafford Riding 895 14 0 Aralmra Riding 3 11 Kanieri Riding 703 5 5 Kokatahi Riding 1550 10 0 R’iniu Riding 2014 4 11 Totafa Riding 1190 16 11 Okarito Riding 1630 6 3 Okuru Riding 780 1 7 Miscellaneous 804 0 10 £12,138 5 8

Riding. On total On Oonincome. oral rates. Northern "886 idSSf 550 peutral 1047 Southern 922 1303 £2900 £2900