INTERNAL AFFAIRS

Hokitika Guardian, 10 August 1923, Page 3

INTERNAL AFFAIRS

The report of the Department of Internal Affairs for the year states that the practical effect of the Local Bodies Finance Art was felt during tlie year, inasmuch as local bodies were failed upon to commence to liquidate their antecedent liability by one of the means provided in the Art, and also lo keep their expenditure within the limits provided by the Act. In stances of hardship were revealed, but these were met either by arrangement or, where ncees-ary, by legislation. Despite adverse criticism from a few quarters, it is now generally admitted that the Act is working well, and will materially strengthen the linaiieial position "l local bodies. An impression is current that tlie Act is harsh in that if a Hood, for example, came and necessitated unexpected expenditure, then the local Ixidy would require to erase it' ordinary operations for a period. This, however. is not the ease. The Aci aims ar keeping expenditure by local bodies within the limits of their income in each year, hut emergency is provided lor by section 7. whieli empowers Hie Minister to authorise a local body to l.i now money bv overdraft or f.t’i r sin !i means in special eases of .‘hioi 1 , earthquake, fire or other aceib'iii. .Moneys borrowed for such purposes are an addition in the usual borrow-ng powers antlmiised liy the Act, and : re dealt with as an antecedent liahilirv of the local body. Such moneys may be extinguished in any of I lie ways provided in the Act -out <fi revenue by direct loan without a poll of rilr-p;i.\ci-L nr liv special into.