Rural ward 'hijacked'

Waimarino Bulletin, Volume 6, Issue 243, 24 May 1988, Page 3

Rural ward 'hijacked'

District Council members were accused of "hijacking" $162,000 belonging to the rural ward.

Rural member Cr Doug Bennett said the money was a credit balance with which the former Waimarino County had ended the 1987-88 financial year and it belonged to rural ratepayers. "As far as I'm concerned this $162,000 has been hijacked," he said. The combined estimates for the council had to be reviewed, he said. Separate accounting had to be done for each of the wards and separate bank accounts had to be set up. He said the credit balance would be wiped out by simple transferring of bank accounts into one account. "I'm sticking out for interest on our money as well. Some allowance must be made for it." Cr Bennett and Cr Dave Griffiths led a long and vitriolic campaign during the fivehour estimates meeting for separation of accounting. They wanted to preserve the credit for the exclusive benefit of rural ratepayers. Cr Griffiths opened the discussion saying the future looked quite serious for rural ratepayers. Cr Bennett said the prospect of the future for farmers was "pretty gloomy". Eventually, after two separate debates on the matter, rural members lost their argument when a motion was defeated on a casting vote by chairman Garrick Workman. The motion was for separate bank accounts for each ward with interest payable directly to each account where applicable During the first debate attention was drawn to the wages and salaries estimate of $345,000. Mr Murrihy said the figure included future increases and some back pay. There was no prospect of any staff reductions, although some costs would be recouped as costs of amalgamation. If anything the estimate was light. Commenting later, Cr Griffiths said the council had spent several hours trimming the estimates but the single biggest cost, wages and salaries of $345,000, was alarming. "We're just top heavy," he said. It was amalgamation forced on the district by central government that was causing the extra cost. "I concede that one cash balance would be better from the general manager's point of

view, but he could see no reason to run. a cash credit situation. He felt the benefits of credit should be applied to its source. The rural ward had put the district council in a healthy position. Mr Murrihy said it was impractical to apply credits separately. Accounts still had to be paid from the last month of the previous financial year and this

would alter the final balances. In addition, any reduction of the credit balance by a reduction in a rural rate increase would impact a year later in the form of higher increases to catch up. Asked if it was possible to run separate accounts, Mr Murrihy said obviously it was. But the administration cost of doing so would be horrific and would take a lot of staff time. It would also lead to inefficiency and defeat the purpose of amalga-

mation. "My aim is to bring all three wards up to a credit balance," he said. Cr Griffiths said the rural credit was earning about $1500 a week in interest and this should be for the benefit of the ratepayers who owned it. Cr Ellen Gould said the discussion pointed back to what Ohakune Borough Council had said all along. County

councillors were the ones who had held out for representation proportions which were now the root of a problem. "I object to Ohakune and Raetihi being blamed for problems," she said. Cr Peggy Frew said if there had been a poll in the county there would never have been an amalgamation in the first place.