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Hokitika Guardian, 21 September 1929, Page 4

At Auckland this week, Professor Belhaw, who wid be remembered here as a lecturer under the W.E.A. scheme when in force locally, lias been addressing a public gathering of the Rotary Club with regard to local body finance, ana the rapid increase of debt. Mr Belshaw made the point that the local bodies in New Zealand have laid far too much stress on rates as a source of finance but the rates are the foundation for tho security under the law for all local body borrowing. Although local body debts have been increasing greatly of late, the cause is due in the main to the great expenditure by Power Boards, Harbour Boards and Borough and County Councils. The Power Boards have been installing at great cost plants and reticulaiion services which ordinarily will give a return for the expenditure but pending effective completion the security given through the rates has to be levied, but in due time the ratepayers will derive an advantage from the installation, first by reason of the improved service, and later by the earning power of the plant and service which should tend towards the reduction of rates. In regard to Harbour Works the expenditure is designed to give improved shipping facilities all for the betterment of a community over a wide district, and there will be a quid pro quo, or should be, in due course. Respecting boroughs and county councils, these bodies are chiefly coiuerned in sanitation; drainage and roading. ’These of course are amenities which do not supply direct revenue in earning power to any great extent, but they are essential from a health point of view, and for the steady development of flie centres affected. Economically it is oetter to perform works out of revenue or income than from borrowed money but in large undertakings io is necessary to borrow, and not inequitable that the cost covered by repayments should be spread over a fair period so that those who come after should pay their contribution for social services to be enjoyed. There is of course a limit to the spending of annual revenue on public works. The ordinary • charges for maintenance and general upkeep of a town or district are the first charge on any centre, and the surplus over and above these demands is never large. Local bodies as a rule do not seek to levy too much from the ratepayers. They have estimates before them when levying the general rate required, and the bodies invariably cut the cloth to the gar= ment, and even curtail the size of the garment for the time being, rather than make an excess rate. On the whole the ratepayers are well served by local bodies. They are essentially democratic institutions composed of representatives who come up for review at regular intervals. The general policy of local bodies is such that it can hardly be said that there is any disposition to go in for a spendthrift riot, or to attempt works outside the means of the community.