35

H—2B

of the various local authorities which were the subject of review at the inquiry. The fact that we recommend a change in structure is no reflection on the service given in the past. The imperative demands of progress have, in many spheres, rendered existing institutions unsuitable for the future. In so far as we have recommended a change in the existing structure, we have done so not in any sense as a reflection on the existing local authorities, but because we are confident that enhanced service can be rendered by their reorganization. As in the case of area, our observations have equal force in respect of rateable values. These cannot necessarily be accepted as the yardstick of an efficient county unit, as such matters as the preservation of community of interest, topographical considerations, type of country to be administered, stages of development, and other factors must be taken into consideration. The wishes of representatives of local authorities and of the ■electors themselves are of vital concern, and should be acceded to wherever possible when observations made by them are soundly and constructively based. In the reorganization proposed by us, we have had due regard to this aspect and have met, as far as possible, the expressed views of the local authorities' representatives. In two of the groups we have recommended, the rateable capital value falls below what we consider to be the minimum requirement of £5,000,000 to provide sound county administration. In one case, however, that of the Tawera, Selwyn, Malvern, Paparua {West Melton Riding) group, the two counties with the largest collective rateable capital value of over £3,000,000 are, we understand, due for revaluation, and this, it is believed, will bring the total rateable value close to or above what we consider to be the basic minimum. In the other case also, that of the Akaroa, Mount Herbert, and Wairewa group, the present rateable capital value of which approximates £3,200,000, the whole area will probably be revalued during the next four years. There were, however, other considerations, such as their topographical features, difficulty of administration in -conjunction with areas of flat country, road construction and maintenance problems dissimilar to those on the plains, plant requirements, community of interest, and other factors, which determined the desirability of their grouping as one unit. The question of riding finance has been considered by us. There are four counties which still retain separate riding accounts —namely, Heathcote, Rangiora, Waimairi, and Wairewa. In the case of the Heathcote and Waimairi Counties there is not a wide variation in the general rates in the pound struck for the current year in the respective ridings remaining in these counties. This also applies with regard to Wairewa and Rangiora. There is no difference in the general rate in the pound struck between the two ridings of the latter county. As a consequence, it appears that there will be very little hardship on those ratepayers in ridings which are paying a lesser rate. In any case, the effect of the reorganization we have recommended will, we consider, progressively result in over-all economies and improved conditions which will more than compensate for any immediate hardship occasioned by the elimination of riding accounts internally. During the course of the inquiry the question was raised as to whether the existing counties, as ridings of a united county, could be financed from general rates made and levied in those ridings. In our opinion, the existing provisions of the Counties Act, 1920 {sections 10 and 121), enable general rates to be made and levied in the existing counties as ridings of a united county. Section 10 of the Act provides for the constitution by the ■Governor-General of a county formed by the union of two or more counties. The wording of this section, in our opinion, implies that on the union of two or more counties in pursuance of this section a new county is constituted. Provision is also made in the same section for the division of a county thus constituted into such number of ridings with such names and boundaries as the Governor-General thinks fit. ■ It is then mandatory on a newly elected Council of a united county, in pursuance of section 121 of the Act, to make and levy a general rate separately in each riding.