I.—15

(c) Indebtedness and Annual Loan Charges The following table shows the outstanding loan indebtedness of local railway districts. Since 1932 the sole remaining district has had no loan indebtedness, and therefore has had no loan charges : — Table showing the Amount of Net Indebtedness on Account of Loans of Local Railivay Board from 1924-25 to 1943-44 £ £ 1924-25 .. .. 44,526 1934-35 1925-26 .. .. 42,282 1935-36 1926-27 .. .. 39,912 1936-37 1927-28 .. .. 37,414 1937-38 1928-29 .. .. 34,785 1938-39 1929-30 .. .. 32,017 1939-40 1930-31 .. .. 29,103 1940-41 1931-32 .. .. 26,069 1941-42 1932-33 .. .. 1942-43 1933-34 .. .. .. 1943-44

Table showing Total Annual Loan Charge of Local Railway Board from 1924-25 to 1943-44

(13) Unauthorized Expenditure It has been previously indicated that local authorities may expend their income only in a duly authorized manner. In view of the general relationship of the local authority to the inhabitants of the district in which it operates it is only natural that it should be called upon to make certain minor payments in directions which are not specifically authorized. One way in which this may be done is by the promotion of a local Bill. The local. Bill is an important institution in local government, and is fairly widely used to enable specific Local Authorities to embark on special works in connection with their districts. The general procedure when promoting a Bill -as, for instance, when the Wellington City Council decided to undertake the distribution of milk—is for the Bill be to publicly advertised and presented to Parliament. It is then submitted to the Local Bills Committee of Parliament, which is entitled to hear evidence, and advise the House as to the wisdom of allowing the Bill to proceed. When passed, the Act may include an authorization to the local authority to expend moneys in a direction not previously authorized. In a number of minor matters, however, not sufficiently important to warrant the promotion of separate Bills, it is the custom to introduce annually a Local Legislation Bill, which provides in its various clauses special powers to particular local authorities. The Local Legislation Bill is a public Act. In dealing with any particular local authority, therefore, it is necessary not only to know what are the provisions of the general legislation, but also to see how far these specific provisions have been altered or extended by local legislation or by the provisions of the annual Local Legislation Bill. There are, however, a number of minor matters for which no legislation could provide specifically. To meet these specific cases the legislation makes provision for a small amount of expenditure on unauthorized items. The Public Revenues Act, 1926, provides that any Town Board, Road Board, River Board, or Drainage Board may expend for purposes not covered by any Act or law an amount not exceeding 1 per cent, of the general rate struck, and in the aggregate not exceeding £50. In the case of a Road Board in a county where the Counties Act is not in force, if 1 per cent, of the general rate struck does not amount to £50, that sum may be expended for unauthorized purposes. In the case of the other local authorities noted above, where 1 per cent, of the general rate struck does not amount to £15, then, that local authority may expend £15 for unauthorized purposes.*

* Public Revenues Act, 1926, section 129,

,8*

115

Year. Interest. linking Total. Year. Interest. Sinking Total. Fund. Fund. £ £ £ £ £ £ 1924-25 .. 2,850 1,900 4,750 1934-35 .. Nil Nil Nil 1925-26 .. 2,850 1,900 4,750 1935-36 .. Nil Nil Nil 1926-27 .. 2,850 1,900 4,750 1936-37 .. Nil Nil Nil 1927-28 .. 2,850 1,900 4,750 1937-38 .. Nil Nil Nil 1928-29 .. 2,850 1,900 4,750 1938-39 .. Nil Nil Nil 1929-30 .. 2,850 1,900 4,750 1939-40 .. Nil Nil Nil 1930-31 .. 2,850 1,900 4,750 1940-41 .. Nil Nil Nil 1931-32 .. 2,850 1,900 4,750 1941-42 .. Nil Nil Nil 1932-33 .. Nil Nil Nil 1942-43 .. Nil Nil Nil 1933-34 . . Nil Nil Nil 1943-44 .. Nil Nil Nil j