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Hokitika Guardian, 30 July 1931, Page 4

Tim difficulties of public body finance brought home of late by the general stringency of the times, indicates that the position requires very careful handling and opportunities for economies should not be neglected. Many local bodies are meeting with difficulty in collecting rates, and tin the North Islaud where borrowing was so largelyindulged in lately, special rates for special development works are most difficult to collect. As a result some of the local authorities are having a difficulty in meeting their financial obligations for interest and sinking fund, payments. Default is threatened in ; sdnie- instances. This state of affairs fully justify economy- measures, and those are .now being enforced very generally. The reduction in wages for staffs' and employees is now very general. notwithstanding that much opposition. has been raised.. But it. appears to he inevitable. The local bod ies are like the country, if there is not the income to meet the expenditure, the latter must be reduced, or chaos will result. Naturally there are cases of apparent hardship brought to the surface, and naturally those op,P,osed,„tp, jvages cuts .make * the: most of the position. Where wages are small already no doubt there is a degree of hardship, till the situation is adjusted. Many affected by the “cut” have to "face next month a further reduction from their wages, but this visitation might remind them . how fortunate they are to be in employment, for the wages .tax is designed to help the unfortunate unemployed who will receive something in the nature of a dole under very, restricted conditions. When it is considered the single man can earii only £2 14s a month, or the married man with a family, only £7 'los a month, those in regular employment will realise how much better off they are. But apart from that, the local bodies and institutions have a duty to the taxpayer, and the expenditure on behalf of the public must he moulded within the means of the taxpayers. With this in mind the reasonableness of wages cuts are justified, for better solvent local body functioning pronerly to a bankrupt institution unable to meet a ll y wage expenditure at all. When prosperity returns, the whole position can be reviewed on equitable lines.