LOCAL BODIES

Hokitika Guardian, 18 November 1932, Page 6

LOCAL BODIES

CHECK ON ESTIMATES,

AITDITOK-GENEBAL’S ADVICE

WELLINGTON, November 15

A warning to local authorities to keep a caret ul check on their estimates throughout the yetr, is contained! in the annual report of the Controller and Auditor-General (Colonel G. 1'- C. Campbell), which was presented in the House to-day. “The .present adverse economic conditions are reflected in the accounts of local authorities.,” says Colonel Campbell, “and it is apparent that many authorities owing to the inability to collect the rates levied are finding it increasingly difficult to keep within tho statutory limits of overdraft or to meet their obligations. During the past year there were no fewer Jinan 40 instances where the statutory provisions governing borrowing on overdraft'were contravened by local authorities, and in each case the authority concerned was called upon to take immediate steps to reduce its Overdraft to within the legal l.mit.” INTEREST OBLIGATIONS.

Colonel Campbell goes on to mention the case of the 1 Thames Borougfh Council, which was unable to meet interest payments on its loans. “Other local authorities,” he continues, “are experiencing difficulty in meeting their obligations to pay interest and sinking fund on loans. One of them, at least, has placed its financial position before its bondholders, with the object of obtaining some measure of relief from the burden of loan charges. I desire to emphasise again the necessity foi local authorities carefully to review their estimates from time to" t me durthj year, with the object of endeavouring to keep expenditure uithing the bounds of available income. forfeiture of seats. In a later section of the report; Col-1 onel Campbell mentions that during the year 15 members of local authoiitios forfeited their seats on account of tlieiA being interested in eoalracts with f ie local authority concerned or on account of their holding offices in its gift. In all instances they appeared to have acted in ignorance of the law. Colonel Campbell calls «t- j teiition to diversity of statutory pi o' i- | sions governing disqual'fiention, and i urges the necessity for the enactment of uniform provisions.