LOCAL BODIES LOANS.

Hauraki Plains Gazette, Volume XXXVII, Issue 5013, 13 August 1926, Page 2

LOCAL BODIES LOANS.

PLAINS COUNCIL’S VIEWS ON BILL

CHAIRMAN’S PITHY SUMMARY.

In common with other local bodies the Hauraki Plains. County Council has taken exception to the proposed Local Government Loans Board Bill. To the monthly meeting yesterday the N.Z. Counties.’ Association forwarded a resolution dealing with the proposed Bill. It was. not opposed to the supervision of borrowing powers, but was anxious that the board would not unduly add to the administi a'tivo cost of counties, or delay the carrying out of legitimate, requirements. One of the members of the proposed board should be representative of county councils. Even if the Bill was not passed, loan proposal supervision might be greatly assisted if the Treasury investigated the financial merits of each proposal and submitted its report to local bodies prior to the taking of any loan polls As, the Bill had not been circulated in time to receive consideration at the recent Counties’ Conference the executive of the association did not claim to be voicing the views of all county councils on the question.

The chairman, Cr. E. L. Walton, said

“This, is truly a remarkable 'measure : remarkable in that it runs counter to the immemorial principle that the interests of a district will be most safely entrusted to persons whom the ejectors haye the power from time to tune, to dismiss ; remarkable in that it introduces central control in a mos.t drastic form. It has always been accepted that knowledge of Ideal conditions is indispensable to judicious administration, and that this end is more likely to be secured by loca.l control. Loc.al control will, tend to be more fully and closely adapted to the varying requirements. than central control, is ever likely to be. Lowell, in his, standard work on the Government of England, says : ‘Central control means delay and red tap®. Permanent officials in the central office tend, not unnaturally, to follow precedent—they collect precedents from which they are loath to depart.’

“Again, the Bill is remarkable for its operative machinery. After providing in clause 3 that rio loca.l authority shall borrow without the consent of the. Governor-General in Council the Bill proceeds in clause 4 to set up a board of seven persons ,n--cluding the Secretary to the Treasury and the Engineer-in-Chief off the Public Works Department. It is clear the board is to be headed by already overworked officials'. It is ridiculous to think that these public servants caii undertake fresQi duties whofliesale : in fact, the Bill recognises this, in providing that in the absence from any ineetiing of the board of any member who is a civil servant, then his place may be filled by another officer of the same department. The result is that the decisions of the board will in most cases be ma,de bn the opinions ot subordinate officials. “The procedure and powers of the board are autocratic: its power is absolute, complete, and final. The procedure is for the local authority to forward its application to the board, but is not heard in support -of it; the board meets in secret: and, flnajly, with reasons or without, pronounces judgment. Briefly, that is what will happen ff the Bill in its present form becotaes law. “In common with many others, I had thought it was the Government’s intention to legislate by setting up an advisory board. I think that while local bodies would resent dictation they would welcome advice. Where they need a highly qualified technical advisor the Bill supplies an autocratic board. I think it woluld have been sufficient to have provided an advisory board, whose recommendations should be made known to the ratepayers in suitable form before a.ny proposal was put before them. I think the ratepayers, with the help qf advice from such board, should have the final say. Instead of that we are offered an indefinite, intangible, invisble board with absolute power to rule what local bodies must not do, and it only requires, another such board to shy what they must do for local body government to cease.”

Other councillors agreed that the chairman had summed up the position very well.

It was decided that the Pre.ss be asked to publish the statement in full, and that a copy of it be sent to the Counties’ Association and the members for the district.

HOSPITAL BOARD DISCUSSION. VIEWS F MEMBERS. The proposed LocaJ Bofdy Loans Bill has been causing considerable concern and much discussion at local body meetings throughout New Zealand. ,* At Monday’s- meeting off the Thames Hosptial Board, when the matter was under disteussicin the chairman (Mr W. E. Hale) summed up the position by remarking: “It is a good measure, and should have been brought in years, ago.” Mr J. W. Danby opposed the Bill. He said that such a board would have the power to override statutory authority already given to a loteal body to raise a loan apd proceed with the work. A dangerous precedent would be established, and serious; difficulties must arise. He thought that at least the local body affected should be able to give evidence before the board by a deputation consisting of the member 'for the district and a local body representative. Mr W. C. Kennedy said tha,t considerable unnecessary expense and loss of time would result. In his opinion the Bill was- 'ridiculously unworkable.

Mr Hale said that iff any serious defects were found machinery would be quickly applied to make it -workable. Mr B. L. Walton favoured the setting up of such a board to work in an advisory capacity. Its opinion could be printed on the voting papers

to serve as a guide to ratepayers. At the same time he thought it desirable to fight the principle of the board.

Mr Danby reminded the meeting that local body borrowing had increased by. £27,000.000' in the last eight years. Mr Walton a.sked what proportion of that amount was; credited to harbour boards.'

Mr Danby replied that it had been contended that a large proportion had been caused by hospital boards borrowing. Mr Kennedy contended that the principle was wrong, and asked members iff they could point to an instance of the Government turning dbkvn a loan.

Mr Hale mentioned that he knew of cine that should have been turned down.

A Voice: ‘ The Paeroa Hospital. (Laughter.) The matter was allowed to drop after further desultory discussion.