BALANCE-SHEET “TAGS.”

Gisborne Times, Volume XXIX, Issue 3315, 6 September 1911, Page 2

BALANCE-SHEET “TAGS.”

REFERENCE IN BOROUGH COUNCIL. EXPLANATION BY THE MAYOR. The Borough balance sheet- was placed before the Council last evening. The Mayor said that the AuditorGeneral took exception to the payment of £lO 9s 6d as interest on unpaid purchase money included in amount of £1892 14s 4d in account 4g, as it was without authority of law. He pointed cut that it had been decided to purchase reserves at Wliataupoko and Kaiti. A property was put under offer to the Council at a certain price and the Council had to accept or decline it by a certain date, but the Council were not able to agree to purchase it at the particular date, as there were obstacles in the way. In order to keep this offer open it was decided to pay £lO 9s 6d. C-r Darton: AVas that not purchase money ? The Mayor: I cannot say that it was. It was paid to keep the offer open.

Cr Darton: And the transaction was subsequently completed. The Mayor: Yes, and we would not have got it for £2OOO if we had not left the matter open. Cr Darton: The matter . has never been made public. We saved a lot of money by the experiment. The Mayor said that the other items were; (1) Moneys collected 'for and applicable only to the payment of interest on loans has, to an amount of £9B 6s 3d, been improperly used for other purposes. (2) The payment of a lump sum of £BOO to the Mayor' to cover his travelling expenses to England is without authority of law. (3) While recognising that the expenditure on the Gentle Annie Tramway has been incurred bona .fide under legal advice, the Audit Office is of opinion that the intention of the Local Bodies Loans Act, 1908 (section 8), has been evaded inasmuch as the project was not embodied in the loan proposals submitted to the ratepayers. Cr. Darton : The payment to the Mayor is a bona fide one although he holds the opinion that it is not the intention of the Act. It is very satisfactory. Cr Collins said lie would like to congratulate the Council on having the balance-sheet passed. “ Whom have we to thank,” he asked, “the AuditorGeneral, the present Mayor, or the Town Clerk?”

Cr Darton : The committee. ' Cr Collins : I move a vote of thanks 1 to the committee.

The Mayor was empowered to sign the balance-sheet.