Untitled

Hokitika Guardian, 17 January 1922, Page 2

Parliament is putting through a mea-; sure this session which will have an i important bearing on local body ad- . ministration. The measure is the Local Bodies Finance Bill which passed the Lower House last week, and is now with the Upper House. The bill is designed to secure the finance of local bodies by preventing an undue increase in overdraft. It is a measure which administered with care will have the effect of causing local bodies to live within their moans. Under its provisions no local body may have at the close of its financial year, a greater overdraft than a proportion of its''uncollected rates or revenue. Local bodies which in time past liorrowed to pay off former existing overdrafts, were already restricted in the creation of a now overdraft beyond the amount of revenue actually outstanding. Ibis provision is to be made general and is a wise one. The measure is being received generally in a favorable light by the members of local bodies which is an earnest that the peoples’ representatives are anxious to do the b**st for the ratepayers. Some local bo-1 1

carry a considerable liability in tlio burden of its overdraft. Recently, bank interest on all overdrafts went up substantially and a considerable sum has to bo paid out in bank interest which could be utilised to advantage on works. The proposals of the bill are to the effect that existing oveidrnfts are to he funded and the local body within a stipulated period has to provide for the paying off of overdraft. From the time the funding takes place, the local body may not have a fresh overdraft otlie- than a sum equal to a proportion of its cash outstanding assets. When this legislation becomes effective it will have a curtailing effect on outgoings for interest, and good money will be saved for more useful purposes than paying interest. In the event of flood or other extraordinary damage to he met suddenly, provision is made to meet special cases, so that the local bpdies will he put in the way of maintaining sound finance. It will he necessary for local bodies to collect their annual revenue earlier in the year—once overdrafts become prohibited. A rate is struck for a year, and if the local body is to carry on effectively, the rate will require to he paid at _ the beginning and not the end of the financial year. There is no doubt if rates were paid promptly many local bodies would save greatly in interest on overdraft, so that the ratepayers will find it to their advantage to pay promptly and keep interest charges down.

Tjtf, cordial character of the welcome extended to Sir Joseph Ward at Invercargill Inst week was an expression of public feeling somewhat' oyprdue. 41fW

it was something of a Bign of the times; an expression of the feelings of the people. The Mayor attended for this impromptu function which was made . specially interesting by the speech- j making. There is beyond doubt a feel- ; ing all over the country to see Sir Jo- • seph Ward return to politics. Sir Joseph has been greatly missed from the ; present Parliament, and his absence is still felt. His return depends largely on the state of his health, for ve would fain believe that personally Sir j Joseph is still anxious to place his mi- j doubted talents’ at 'the disposal of j the people. The present crisis thiough j which the Dominion is passing is essen- j tially financial. That is a sphere in which Sir Joseph Ward has been outstanding always. During the past two years many palliatives have been attempted, but the country is going rntlior from had to worse. Just now there is the possibility of a meat pool ty meet tnc exigencies of the occasion, and it is being pointed out that the ultimate result is fraught with great danger to the finances of the Dominion. I We know that during the war period Sir Joseph Ward rendered signal serI vice in handling the finances, and when lie retired from office, he left the Treasury which he had accumulated were soon frittered away, his successor pursuing a line of policy quite opposite to that which had proved so sound. Ever since then the country has been going to leeward, and is now face to 1 face with serious difficulties. The Government is content to wait for some- ' thing to turn up, but fortune is not always favorable, hence the growing desire up and down New Zealand to see Sir Joseph Ward returning to politics. It is pleasing indeed for his own salto learn of his improvement in health. If he could re-enter politics at this ! juncture lie would do a great service to New Zealand. His presence alone I would hearten the people, for he has i their confidence, and that is the stepping stone to a progressive rebuilding of the . financial fortunes of the Dominion