UNITED AREA DRAINAGE.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5120, 2 May 1927, Page 2

UNITED AREA DRAINAGE.

THE FINANCIAL POSITION. WAGES OVERDUE. At the present time the Hauraki United Drainage Board is without funds, and has considerable debts but no income or authority to obtain a bank overdraft. The position was explained by Mr W. E. G. Willy in a letter to the Minister of Internal Affairs when applying for permission to borrow by way of overdraft from the bank the sum of £2OOO during tlie current financial year. At the union of the Hauraki and Horahia drainage boards the Horahia Board had a credit balance of £725 and the Hauraki Board a debit balance of £Boo', and consequently on tlie amalgamation the Hauraki United Board is faced with an overdraft at the bank. The Hauraki Board was awaiting a sum of £5OO due to it in the form of a subsidy, which -had to be found by the general account before it could be lifted, and tliis amount is still outstanding and, together with an amount of rates outstanding, placed the account in debit to the extent o-f £BOO. Unfortunately for the United Board the late Hauraki Board let the greater part of its drain cleaning contracts prior to the union, and theUnited Board now has to face all its contractors without anj- money to pay them. The Horahia Board let quite a number of drain-cleaning contracts, and had the money to pay for, same, but tlie effect of the amalgamation was to take this credit balance to partly wipe out the present overdraft of the !ate Hauraki Board.

The amount of rates struck by the two boards last year added together amounted to £4435 18s lid, and it was estimated that this amount will have to be levied by the Hauraki United Board for the year 1927-28. The overdraft authorities of ’the two boards last year amounted to £2BOO.

Mr Willy’s letter pointed out that the heaviest payments for drainage maintenance work took place at this season of the year, and a large number of employees were waiting at tlie present time for moneys due to them for work let prior to the union and now completed. The matter of their payment was a moral obligation on the Hauraki United Board, but the ordinary means of obtaining an overdraft was taken away by virtue of the fact that tihe united district was a newly created district. The matter should be given earnest and immediate attention, as nothing could be done until the. Mnister’s permission to obtain an overdraft was obtained. The urgency would be appreciated when it was realised tliat many families were awaiting tlie money due to the breadwinner.

Tliis letter was written on April 16, and up tiil Friday last no reply had been received. In order to make provision to secure tiie money as soon as the Minister’s consent was received the board passed the formal resolutions, as required by the bank from local bodies desiring an overdraft. ,

Authority was given the chairman and clerk to operate on the bank account, and the accounts were passed for payment when funds permitted.