LOCAL BODIES FINANCE BILL.

Shannon News, 15 November 1921, Page 3

LOCAL BODIES FINANCE BILL.

A CURB ON OVERDRAFTS,

An interesting reierence to the Local Bodies’ nuance mu, mM, and its effect on county lmnane was conlaineu m a lepori 10 ujo rxoiuwneuua County Council on s>aluruay hy Mr P v W. Goldsmith, tne coumy uteasurer. “This Bill now belore Parliament, ’ the report stated, “is undoubtedly designed to make local bouies live within their means irom year to year, and not pile up high bank overdralts as has been the case wnn some Councils. The principle ol the Bill is undoubtedly a right one. It is provided, amongst other tilings, that those local bodies who on the 3ist March, 1921, had an overdralt greater tha»n the amount of outstanding or uncollected revenue, must take steps to deau with such overdralt. In the Bill this is called the antecedent liability,’ and can be extinguished either by raising a loan for the purpose >r by paying out of revenue in seven annua,l payments a sum sufficient- to pay off this old debt. “The position of the Horowhenua County Council may be stated as follows: On the 31st March, 1921, the Council was indebted to its bankers the sum of £179 Os Bd. There was, however, at that date owing to the Council uncollected rates amounting to £1684 15s 2d, hence I take it that the Council has no ‘antecedent liability’ as defined by the proposed Act. It is, however, quite evident that there must be no overdraft on the 31st. March, 1922, of a greater sum than the uncollected rates and revenue tor the present year. The estimates framed in May last anticipated a debit balance in the riding accounts, and consequently an overdraft on the 31st March next of some £2OOO or £3OOO. In view of this position, if the Bill becomes law, jt will .be necessary to take info consideiation tlie various commitments for the unexpired part of the present financial year, with a view towards reducing the expenditure "to -suit the altered circumstances.” Cr. Monk, the'chairman, said the Bill did not give Councils much freedom of action, and made no allowance for extraordinary expenditure such as the washing away of a bridge. It did not seem fair to bring this Bill down no-w when local bodies were half-way through a. financial year. Their ovrti Council drew 7 up its estimates in anticipation of an overdraft at the end of the financial year. The Bill had its good points, but. he suggested that. T 922” be substituted for “1921’ in the Bill, which would give local bodies a year to prepare, otherwise he could not see how some bodies would be able to get. out of their difficulties. ,Cr. Ryder quoted the case of a Council in the north that was heavily involved. It was a question how such bodies would get oil.

Cr. Bvoadbelt: What is the amount of our debt.

The Chairman: Between £2OOO and £3OOO. He added that be did not think the Bill would go through in its present* form. An alteration would be made.

Mr Goldsmith said that some Councils took up mony on deposit from outside people or companies. They could not do that in future. “We have lived within our means,” said Mr Goldsmith, “and this Bill is designed to make Councils do as we have done, but the . notice is too short-.”

Cr. McLeavey moved that the Chairman and Clerk communicate with the member lor the district, outlining the suggestions made regarding the Bill. This was agreed to. The Chairman: The Bill is a step in the right, (direction, hut there should he some provision lor extraordinary expenditure. Cr. Broadbelt: We must build up a reserve.

The Chairman: Don’t talk to me about reserves. I’ve been living on one l'or the last 12 months. (Laughter.) The chairman added that the Clerk’s report was a very good piece of work.

The report was adopted on the motion c>f Grs! Broadbelt. and Ryder, both referring to the excellent way it had been drawn up by the Clerk.