CURB ON SPENDING

Hokitika Guardian, 23 November 1932, Page 6

CURB ON SPENDING

LOCAL BODIES AND FINANCE.

AUDITOR UTTERS WARNING.

(Per Press Association a Copyright.)

WELLINGTON,- November 22,

A warning to local! authorities, to keep a careful check on their estimates throughout the year is contained in the annual report of the Controller and Auditor-General, Colonel G. F. O. Campbell, which has been presented to Parliament.

r “The present adverse economic conditions are reflected in the accounts of local authorities,” states Colonel Campbell, “and it is apparent that many authorities owing to their inability to collect the rates levied an finding it increasingly difficult to keep within the statutory limits ,of overdraft or to meet their obligations. During the past year there were nc fewer than 40 instances where the statutory provisions governing borrowing on overdraft were contravened by local authorities, and ia each mse the | authority concerned was called ' upon to take immediate steps to reduce its overdraft to within the legal limit.”

Colonel Campbell mentions the case of the Thames Borough 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 lr-s placed its financial position before its bondholders with the object of obtaining seme measure of relief from the burden iof loan charges. “I desire to .stress again the necessity for local authorities cnrefiilly to review their estimates from time to time during the year, with the object of endeavouring to keen expenditure within the bounds of available income.” In a. later section of the report Mr Campbell mentions that during the vear 15 members of locel authorities' forfeited, their seats on account of th#ir heing interested in contracts with the local authority concerned or on account of their holding an office in its gift.