CLIFTON COUNTY FINANCES

Taranaki Daily News, Volume LIII, Issue 71, 2 July 1910, Page 6

CLIFTON COUNTY FINANCES

NO MONEY LEFT. COUNCILLORS GIVE PERSONAL GUARANTEE.

At the meeting of the Clifton County Council yesterday the financial position of the Council was again the subject of discussion. The chairman stated that he had been to the banker and told him that the Council would require an increased overdraft to carry them over the winter, and that it had been suggested that the Council/ with the exception of Councillor Musker, who was a new member, should become personally liable through a "joint and several" for £IOOO, which would bring the overdraft up to £5480. Mr. Grimstone, manager, had submitted this to, his head office, and he had been given & favorable reply. The position was that to-day there were accounts owing amounting to £062 19a Bd, and only £269 available to pay them with, so thai to-day's accounts could not be paid unless some arrangements were made with the 1 -—'• The personal guarantee was' the > way.

Cr. Kennington said he supposed they would have to "face the music."

The chairman said that if they went on as they were now doing, £IOOO or even £2OOO would not help them much, unless they curtailed expenditure. Cr. McKenzie said there was no fresh work.

The chairman: "No fresh work as far as the Council is concerned, but the bills 'keep coming in," and he did not know who authorised the work.

Cr. Musker asked if any more amounts were falling due. Cr. Kennington referred to the Government subsidy.

The chairman said that this would not come in yet, and, moreover,, next month £332 was due for interest. There would be no trouble if a check was put on the expenditure. He then asked who would sign the guarantee. Crs. McKenzie,. Kennington, Sander, and the chairman agreed to sign. Cr. Julian, however, absolutely refused. Cr. Sander: A bigger rate should be gone in for. Cr. Julian said the question of rates from native property was responsible for some of the Waihi and Urenui draft. There must be hundreds of acres in both these ridings not paying rates. Some of it was occupied by Europeans, and the matter should "be stirred up.

The chairman stated that years ago he had tried and failed. Judgment had been obtained against some natives, and the Council's solicitor had written to the Native Minister asking him to enforce judgment, 'but they had received no acknowledgment. What could they do when they ran up against a wall like that? The overdraft must be arranged that day. He, suggested that the four who were willing should sign the guarantee. They formed a majority of the Council, and could see that the overdraft was brought down to the legal limit as soon as possible. He, however, thought Urenui should' shoulder some of the liability, as their overdraft was so large. ~ Cr. Julian: For my part, I would leave everyone—cleric, engineer, and every account go before I would sign anything. If the overdraft had all accrued during my time I'd assume the responsibility. The chairman said the Urenui overdraft was £1930, and the revenue under ,£BOO. It wouUJ thus take two snd ahalf years to clear off that incubus' without any further expenditure for maintenance. He had tried to >keep down expenditure in various small amounts in that .riding, Jiut had been, outvoted. He had managed jo keep his own riding overdraft down, in fact, had it not been for the bridge alrid Ota-aroa road it .would ha ye been m credit. Cr. Julian: You'get a lot of Government money. We're not so fortunate! The chairman: Ota-oroa road was the only one.

At this stage jhe bank manager (Mi - . Grimstone) was »ent for and the guarantee was signed by the four members who agreed to do so. * It was understood that if Cr. Sullivan, ;vho was absent >from the meeting, wished to sign, arrangements could be mja'ile.- , The chairman feid he believed that ultimately this, experience was going to do the Council a lot of good. •Cr. Julian: If \-»n have to hand, up £IOOO, it might. *

The chairman: We're in the majority, and we'll keep expenditure down.

j SPECIAL RAT.ES, PROPOSED. | COUNCIL BEGIN' TO ECONOMISE. j| Later on, Cr. Sand«r referred again 'i to the financial position, and said steps must be taken to improve the matter. He stated that special rates should be struck. He instance! the Waihi riding, had an overdnift of £2509, mcl the rates annually amounted to nearly £660. It would take them five years to wipe off the overdraft if all rates went to that purpose. ; The chairman said the Waihi riding had laid down a lot of new road, which' was now in fair orden and should last five years without much expenditure. They also had the roiding problem to consider. If the Taramjfci County Council found difficulty in keeping up their roads in the Waitara riding, where a railway took all the heavy traffic and good metal was obtainable, how were they to get on where there was no railway and no good metal available ? Beach stone was not good metal; it was too soft. He quite agreed that a higher rate i was necessary, though he was averse to I it being struck this year. I Cr. Sander: "ißates must be sufficient ' for maintaining roads and bridges." The increased general rate of y 8 d would ' give £SOO extra, to be divided over all j the ridings. It now cost more for maintenance than it did formerly, and he thought a special rate should be struck in the Waihi riding specially to reduce overdraft. Cr. McKenzie said that the main road through the Waihi. riding carried a lot of Urenui, Mokau, and even Auckland , traffic. If it were not for that Waihi would be in a sound position. He would I

oppose a special rate for a road that other.people used.

It was pointed out that Waihi riding got the benefit of the revenue from the tollgate—namely, about £SOO per year—and was still going back. Cr. Sander then gave notice to move at next meeting, "That a separate rate of >/»d be struck over the Waihi riding for ,the special .purpose of reducing the overdraft.."

The chairman then opened up another phase of the question. Councillors, he said, would have to consider the curtailment of expenses. If they had no grants to expend, but could only go in for bare maintenance of roads, they would have to seriously consider whether they cou'id afford to pay £3OO per annum for engineering expenses.