LOCAL BODY INDEBTEDNESS.

Manawatu Herald, Volume LI, Issue 4474, 5 July 1930, Page 3

LOCAL BODY INDEBTEDNESS.

COUNTRY OYER- GOVERNED. CHAMBER SUPPORTS AUCKLAND REMIT. At Thursday night’s meeting- of the Foxton Chamber of Commerce the Auckland Chamber wrote asking for support in placing a remit before the Associated Chambers of Commerce conference pointing out the seriousness of the growing indebtedness of local, authorities. It was pointed out that the gross indebtedness of local governing bodies in New Zealand has not far short of trebled during the past decade; having been £28,000,000 at 31st March, 19.19 and being £68,000,000 now. Per capita the figures have risen from £24 to £4O while annual loan charges have risen from 26/-to 59/- per capita. Taxation by local authorities has risen from 3.1 millions to .61 annually; 'or from 54/- to ; 85/- per head of population. Accrued sinking funds on account of local bodies debentures and stock on 31st March, 1928 were £7,000,000; the gross indebtedness being 59 millions. On state advances loans 1 million out of 6 1/3 millions originally borrowed had been repaid in regular instalments. \ The purposes of the total indebtedness on 31st March, 1928, were roughly as follows: — £m. Roads, Streets, Footways & Bridges 15 Drainage, 'Sewage, Water 'Supply 13 Parks, etc i Municipal Buildings, ate. 1 Transport Services . 5. Electric Supply & Lighting 15 Gas Undertakings 1 Workers’ Buildings .6 Fire Prevention . .3 Land Drainage .5 Harbour Works 11 Miscellaneous 4 67 Relatively little of I his expenditure is on definitely productive works, and some of the “productive” works are not fully productive, notably some of the harbour works. The non-productive character of this loan expenditure is indicated by the great increase in per capita taxation already quoted. The assets of the local authorities are estimated by the local authorities to be of aggregate value approximately equal to tbe gross debt. In fact, however, the assets include inter-nlia such items as reserves, parks, gardens, which are not really productive in a. direct manner at all. / OVER.-GOVERNED.

The President considered the time had come when local bodies should be amalgamated. The country was over-go_verned, lie said, and if local bodies were reduced or combined those remaining would have greater influence with the Government. There were many eases where two local bodies were working side by side where one could quite easily do the work and reduce the expense by at least fifty per cent. The multiplicity of local bodies which they had in this country to-day meant added expense to the ratepayers.

Mr. G. F. Smith said that the case was parallel with that of dairy companies.| They had found that there was too much overlapping and had made arrangements accordingly.

Mr. Horn-blow said the matter even extended into the Educational side of affairs. There were many little schools which could easily be done awav with.

After some'further discussion it was decided to support the resolution.