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Hokitika Guardian, 12 August 1932, Page 4

Pom is given to tl?e need for some reform in local government by reason of the 1 difficulties of many local bodies, particularly in the North Island. In that quarter especially borrowing on a large stale was the order of the day when times were good, but today the debt remains and the local bodies are having great difficulty in collecting the special rates. I, ln many cases the settlers have left, their farms to the mortgagee, in several instances, the State Department, and in such cases the Department accepts no rate liability. In various eases there has Uee-n- 'extravagant-outlay in roads and bridges, and the revenue is hot; forthcoming now to ..meet interest and. sinking fund payments, and the local bodies are in a tight position. There have been i who’esota economies in ; reducing wages-and also staffs, and pressure is -being brought On the ratepayers in arrears to pay. The."' js also fv demand for derating of ba'deblock lards, making up. the loss of-rates out •of the highway funds. But these are being appropriated wherever possible by the Government. Another suggestion is to male© the loans 9 charge on highways expenditure under which scheme the local bodies concerned would Receive a subsidy on the payments. Both proposals are a" departure from the equitable position, but intended to relieve ratepayers of their liability. So fmy the Government has refused to sanction, the relief asked for, and it woulld appear in some cases matters; are approaching a critical position, [n both municipal and county local government the- bodies are, in for a stringent time, especially where there has been over-borrowing. The local bodies which resisted the desire I to borrow when money was to he had for the asking, arc the better off to-day. But with so many involved in heavy liabilities, there is 'a serious position arising, and something will require to he done if the debt payments are to b© met according to the undertakings. It will be this: state of affairs that will keep -the question of necessary reform in the forefront, but it would appear, the situation has arisen through ovef lavishness at a time when sounder administration was required. In other words th'e position was abused, and the unwary now find themselves face to face with a grave district situation.