PUKEKOHE'S FINANCES.

Pukekohe & Waiuku Times, Volume 5, Issue 159, 28 March 1916, Page 2

PUKEKOHE'S FINANCES.

In another column in this Usuo will be found a summary of the l'ukekohe Borough Couuc l's lat- st financial proposals submittal by a contributor signing himself "Scrutator," who evidently is authoritatively versed in matters appertaining to the Council, or perhaps, more correctly speaking, of the ideas of the Finance Committee. It is not our purpose at this stage to support or decry the contentions as put forward by " Scrutator" in favour of the loan of £BOOO he advocates. We are not in possession of the facts or arguments on which the Council, it would appear, intends to solicit the ratepayers' co oueration. We understand, however, that the Council's original idea was to supplement its income foi next year by securing a bank overdraft of (rougbly) £3OOO in addition to the revenue of an equal amount that would be forthcoming from ordinary and special rates. The fact, ever, that some yeat3 ago a loan was raised to pay off the then existing overdraft is, however, a stumbling block to such procedure, for although the Council doubted whether the law actually denied it the right of having an overdraft at the end of the financial year in excess of the actual amount of outstanding rates and thought there was a possibility that, as in the case with local authorities who have not cleared off an overdraft by loan, a sum could be raised equal to the previous year's revenue, a reference to the Counsel for the Municipal Association of New Zealand has elicited a reply that in his opinion the overdraft on March 31st must not exceed the amount of recoverable rates. We are free to confess that it teems absurd and illogical that a future Council should have been tied by the doings of a Council who, it is quite evident, failed to realisa the consequences of a loan it took up, more especially as in this particular instance the liability appears to have been more illusionary than real. But the intention of the Act seems to be to render it impossible for overdrafts to be incurred by successive Councils after being once paid off by loan and in that way possibly a M'ise hindrance is provided to check more or less unlimited expenditure by Councillors who may happen to be in office. " Scrutator's " hints of an increase of jd in the general rate, which would bring it up to its legal limit of 1 Id, would undoubtedly be u most unpopular move, and we doubt if a majority of the Council would favour a recourse to such proceeding. Already householders, as explained in the preceding article, will be called upon to pay what is nothing leas than a sanitary rate and compulsory addition to the liability of ratepayers, particularly under war conditions, would certainly be strongly resented. An optional loan, whether | for £BOOO or any other amouut, is, j however, a fair aud reasonable project. In saying this it is not to be thought that we endorse "Scrutator's" pleas. They will require silling as well as careful consideration, but if not accorded the ratepayers' support purely the Council could manage to swryiye by its expenditure to its available ay iu the current year aud as with previous Councils. A year hence troublous war times may have ceased a.nd then on the occasion of the Council going out of oilice a tes-t election could be fought on the merits or demerits of loan mvmosals.