AUDITORS' “TAGS”

Sun (Auckland), Volume II, Issue 323, 7 April 1928, Page 26

AUDITORS' “TAGS”

TRANSFERENCE OF LOANS COUNCILLOR LOSES SEAT (From Our Own Correspondent.) OPOTIKI, Thursday. Technical points of great interest to local bodies, throughout New Zealand were revealed when the balance sheets for the years ending March 31, 1926, and 1927, were placed before the Opotiki County Council to-day. The clerk said he regretted that both balance-sheets were tagged. In connection with the first, the sum of over £6OO had been taken from general funds and expended on preliminary expenses, drawing plans, etc., in connection with’ the raising of a loan for building the new Waioeka Bridge. He explained that the money had to be found somehow*, as it would have been impossible to place the bridge loan proposal before the ratepayers, unless some steps had been taken. Before the loan proposal could be placed them, plans of the bridge had to be drawn, and, as there was no loan money to draw from to pay for the plans, and other necessary expenses, the only option was to take the money from the general fund. When the loan was raised the money taken from the general fund was i*fefunded from the bridge loan. Mr. Merry stated that when ths Minister of Public Works was at Tauranga recently he was approached by Councillor Reid on the subject, and Mr. Williams said he thought the step taken by the council was the only reasonable one.

The council decided to -write to the Auditor-General explaining the position.

Another difficult problem was disclosed by the tag on the second bal-ance-sheet. Mr. Merry stated that land had been purchased from Mr. Butler, who was a councillor. The facts w’ere that during the last heavy flood, a portion of the-main road giving access to Oponae settlers had been w'ashed away and the only way to re-open the road was to use land owned by Mr. Butler. The latter had no wish to sell the land, but owing to the urgency of re-opening the road, he reluctantly consented to sell the necessary land. The Public Works Department especially urged the council to expedite the work of re-opening the road. U N APPRECIATED GENEROSITY As a result of his generous action, Councillor Butler would lose his seat on the council. Mr. Merry said he thought there should be some special provisior in the Act, as the circumstances in this case were exceptional. The council were taken by surprise at the outcome of the tag. general indignation being expressed. After discussion the council decided to write to the authorities and endeavour to get a clause inserted in the Act, so that such a position will not arise again. It also decided to write to the Prime Minister and the Minister of Internal Affairs. The chairman said that Mr. Butler had acted only in the interest of the settlers. Councillor Butler left the meeting, and the council decided to hold an election to fill the vacancy, also another vacancy caused through the resignation of Councillor Parkinson.