LOCAL BODIES FINANCE.

Pukekohe & Waiuku Times, Volume 3, Issue 223, 21 August 1914, Page 4

LOCAL BODIES FINANCE.

Subsidies and Grants.

Proposed New System. Tna Hon. Jam.s All.n, in lis financial statement madj an important announcement concerning Government contiibution to local works. The Minister said: "lam confident that the Housi will support the Government in its effort by legislation to institute a control, independent of the Government and of patty, of mcne\a provided from the consolidated Fu d and the Public Works Fund in aid of Iccal government and local works. It is necessary t) distinguish betwe n tubsidies an l giant.'. Suha.dies are drovided from the Consolidated Fund in aid of the ordinary revenue of local authorities, and constitute tie annual contribution by the State to the cost of local government. The Municipal Councils alone at present have their subsidies determined by a permanent Act, and hold a statutory appropriation. The other local authorities which at present receive eubsidy— namely, counties, road boards ard town boards—have the annual contribution of the country determined each year in the Appropriation act. 'lhe Government proposes to establish all subsidies at the present rate by s a iitory appropriation, and to pr.vidi a further eum equal to one-fourti of lhe total subsidies, and place that sum annually in the bands of sn independent Board for allocation among tha districts, which, for particular reasons, require special assistance from the Mate.

"Grants f.om tha Public Works Fund are at present made to provide, cither wholly or in part, the cost of lo.al works the construction of which the Government of the day thinks it desirable to encourage, provision being made by annual appropriation in accord with the Public Works Statement of the year. NON-POLITICAL SYSTEM. " The Government intends to establish an impartial and absolutely non-political system for the apportionment of that part of the Public Works Fund which is available in any year for aid to local works; and, while I recognise the gravity and far-reaching effect of such a change, 1 believe it will have the approval of Parliampnt and of the country.

" A further large provision for the relief of local finances is proposed in that part of the Local Grants and Subsidies Bill, which directs the ascertainment by the same impartial and non-political Board of what are, and what are not, main arteiial roads of the Dominion, and to what extent the Government funds should be applied to the construction and maintenance of such roads in relief, wholly or in part, of the funds of the local authorities. In this case the ascertainment by the Board is required to be submitted for the approval of the House before it is finally adopted. But practically the settlement of this long-vexed <juestion is now made possible. MAIN ARTERIAL ROADS. " The principle to be established is that while the roads of a district must be provided and maintained by that district from its own funds, except so far as they are aided by subsidies or grants, the maintenance of the main arterial roads, which serve the purposes of the people of the Dominion, and not merely of the people of the locality, should be the function largely of the Dominion, and not of the locality. The intention of the Government is to establish : a definite rule that works which aie of special interest and advantage to a locality should be provided by that locality while works such aa arterial roads which are of far more thi B local interest or advantage, should be one of the burdens on the Dominion's finances. The ell'ect upon the annual finance of local authorities will be practically the same as a large increase of the annual subsidies; but I believe that the principle which I have outlined is just, and that by the country taking over for the first time its full share of the burden of the main roads of the Dominion the local authorities will be enabled in future, out of their ordinary finances, to make more ample provision for local needs."