INSTITUTE OF MUNICIPAL TREASURERS AND ......INSTITUTE OF MUNICIPAL TREASURERS AND ACCOUNTANTS, S.A....

INSTITUTE OF MUNICIPAL TREASURERS AND ACCOUN TAN TS, S.A.

( INCORPORATED)

R ep o rt of tfje $roceebm gsiOF THE

THIRTY •'FIFTHANNUAL GENERAL MEETING

HELD ON THE

13th, 14th and 16th APRIL, 1964

AT

PretoriaWITH LIST OF MEMBERS AND HONORARY MEMBERS

INSTITUUT VAN MUNISIPALE TESOURIERS EN REKENMEESTERS, S.A.

(GEÏNKORPOREER)

"*Uersilag ban bte “ XemgtmgeV A N DIE

VYF'EN'DERTIGSTEALGEMENE JAARVERGADERING

GEHOU OP

13 , 14 en 16 A P R I L 1964

IN

PretoriaTESAME MET ‘N LYS VAN DIE LEDE EN ERELEDE

I N S T I T U T E O F M U N I C I P A L T R E A S U R E R S A N D A C C O U N T A N T S , S .A .

(INCORPORATED)

Report of tíje iProceebtngs;OF THE

THIRTY 'FIFTHANNUAL GENERAL MEETING

HELD ON THE

13th, 14th and 16th A P R I L , 1964

AT

P r e t o r i a

WITH LIST OF MEMBERS AND HONORARY MEMBERS

I N S T I T U U T V A N M U N I S IP A L E T E S O U R IE R S E N R E K E N M E E S T E R S , S .A .

(GEÏNKORPOREER)

^ersílas ban Die l erngtingeVAN DIE

VYF-'EN-'DERTIGSTEALGEMENE JAARVERGADERING

GEHOU OP

13 , 14 en 16 A P R I L 1964

IN

PretoriaTESAME MET ’N LYS VAN DIE LEDE EN ERELEDE

INSTITUTE OF M UNICIPAL TREA SU RERS AND ACCO UN TAN TS, S.A.(INCORPORATED)

A N N U A L G E N E R A L M E E T IN G S A N D C O N F E R E N C E S

Year Date Venue President

1928/29 January 1930 Durban E. B. Scott

1929/30 March 19 31 Cape Town E. B. Scott

1 9 3 0 3 1 May 1932 Bloemfontein J . Towy/Thomas

1931^32 March 1933 Johannesburg J . Towy/Thomas

19 30 33 March 1934 Port Elizabeth V . E. Lewis

i 933'34 March 1935 Pretoria V . E. Lewis

I 934"35 March 1936 East London V . E. Lewis

1935^36 March 1937 Pietermaritzburg W . H . Pitcher

193O 37 A p ril 1938 Salisbury R . D . Bayley*

I 937"3 8 March 1939 Benoni R . D . Bayley

193 8- 39 March 1940 Durban R . D . Bayley

I 939"4° March 1941 Johannesburg-}* I. Q . Holmes

1940/41 March 1942 Johannesburg! I. Q . Holmes

1941,42 A p ril 1943 Johannesburg-}- I. Q . Holmes

194043 A p ril 1944 Johannesburg! I. Q . Holmes

1943'44 A p ril 1945 Johannesburg! I. Q . Holmes

1 944^45 March 1946 Cape Town I. Q . Holmes

i 945 ''46 May 1947 Johannesburg I. Q . Holmes

1946/47 March 1948 Port Elizabeth E. Green

I 947 ' 4 8 A pril 1949 Salisbury E. Green

1948/49 March 1950 Pretoria F. E. Jenvey

1949^50 March 1951 East London F. E. Jenvey

19 5 0 5 1 March 1952 Pietermaritzburg F. E . Jenvey

i 95 i "52 May 1953 Bulawayo A . D . Heighway

19 50 53 M arch/April 1954Bloemfontein

[ 2 ]

A . D . Heighway

Year Date Venue President

1953-54 A p ril 1955 Durban R . S. W alker

1954-55 A p ril 1956 Benoni R . S. W alker

1955-56 March 1957 Vereeniging D . G . Tees

1956-57 M arch/April 1958Cape Town D . G . Tees

1957-58 A p ril 1959 U mtali J . W . Cowden

1958-59 A p ril i960 Margate J . W . Cowden

1959-60 A p ril 1961 Johannesburg J . W . Cowden

1960-61 A p ril 1962 Port Elizabeth W . G . Anderson

1961-62 A p ril 1963 Salisbury W . G . Anderson

1962-63 A p ril 1964 Pretoria H . R . Martin,O.B.E.

* Although Mr. Bayley was President, the Conference was presided over by Dr. I. Q . Holmes, Vice-President.

f No Conference held during war years; only A nnual General Meetings.

[ 3]

Institute of M u n icipal T reasurers and A ccountants, S .A . (Incorporated).

O F F IC E R S A N D C O U N C I L , 1962,63

President:H. R . M artin , o.b .e ., b .com ., f .i .m .t .a ., f .i .m .t .a . (s .a .), a .c .i .s .,

f .i .a .c ., a .c .w .a ., a .i .b .(s .a .), City Treasurer, Salisbury.

Vice-President:O . D . G orven, b .com ., f .i .m .t .a . (s .a .), a .c .i .s ., a .c .w .a ., City

Treasurer, Durban.

Honorary Treasurer:I. Q . H olmes, m.com ., d.ph il ., f .i .m.t .a . (s .a .), City Treasurer,

Johannesburg.

Members o f the Council:W . G. A nderson, f .i .m .t .a . (s .a .), City Treasurer, Pietermaritzburg.

J . W . C owden, b .a ., b .com ., f .i .m .t .a . (s .a .), Principal Officer(Finance) Springs.

F. E . J envey, b .com ., f .i .m.t .a .(s .a .), City Treasurer, Port Elizabeth.

R . S. W alker , b .com ., f .i .m .t .a . ( s .a .), a .s .a .a ., c .a . ( s .a .), a .c .i .s ., a .i .a .c ., City Treasurer, Cape Town.

Honorary Auditors:R . M. R eid , b .com ., f .i .m.t .a . (s .a .), City Treasurer, Germiston.L . C. L ister , a .i .m.t .a . ( s .a .), Tow n Treasurer, Brakpan.

Secretary:S. C. G ooch, f .i .m .t .a . ( s .a .), Fifth Floor, Jacobson’s Buildings,

President Street, P .O . Box 8652, Johannesburg.

“ T H E S O U T H A F R I C A N T R E A S U R E R .”

Honorary Editor:A . W . R . S mith , b .com ., a .i .m .t .a . ( s .a .), a .c .i .s ., a .c .w .a ., City

Treasurer’s Department, Johannesburg.

Business Manager:E. P ostage, b .com ., City Treasurer’s Dept., Johannesburg.

[ 4 ]

INSTITUTE OF MUNICIPAL TREASURERS AND ACCOUNTANTS, S.A.

( incorporated)

R e p o rt of tíje |3roceebmgáOF THE

THIRTY •'FIFTHA N N U A L GENERAL MEETING

HELD IN THE

C I T Y HALL and PRE TORIU S HALL PRETORIA

ON

13 th, 14th and 1 6th A pril, 1964

The attendance numbered 283, comprising:

The President:H . R . M artin , o.b .e ., City Treasurer, Salisbury

The Vice-President:O . D . G orven, City Treasurer, Durban

The Hon. Treasurer:I. Q . H olmes, City Treasurer, Johannesburg

Members o f the Council:W . G . A nderson, City Treasurer, PietermaritzburgJ . W . C owden, Principal Officer (Finance), Springs

F. E. J envey, City Treasurer, Port Elizabeth R . S. W alker , City Treasurer, Cape Tow n

[ 5 )

The Secretary:S. C . G o o c h , Johannesburg,

and the following

Honorary Members, Members, Representatives and Visitors:

A SSO CIA TIO N OF PENSION Samuel, J. P. . AND PROVIDENT FUNDS OF SO UTH A FR IC A

CAPE PRO VIN CIAL ADMINI- Solomon, A . W . STRATION

CAPE PRO VIN CIAL AUD IT Davel, A .

D E P A R T M E N T OF B A N T U D yer, R. T. W . . A D M IN IS T R A T IO N A N D DEVELOPMENT C lements, E. P.

D E PA R T M E N T OF L O C A L V an der Merwe, J. G. G O V E R N M E N T , T R A N S / R etiefJ . S. .V A A L V an G raan, W . F.

INSTITUTE OF AD M IN ISTRA- De J ager, L. T.T O R S F O R N O N T U R O /PEAN AFFAIRS

INSTITUTE OF M U N ICIPAL G alletly, I. A . B. T R E A S U R E R S A N D A C CO U N TAN TS, S .A . (INC.)(S O U T H E R N R H O D E S IA BRANCH)

INSTITUTE OF M UN ICIPAL J ones, G. C . . T R E A S U R E R S A N D A C - C heyney, L. F. . C O U N T A N T S (U N IT E D Hardacre, W . S. . KINGDOM)

I N S T I T U T E O F T O W N Porter, B.C L E R K S OF S O U T H E R N Preiss, H.A FR IC A

JOINT M UN ICIPAL PENSION Nicholls, H. C. FU N D , C A P E D I S T R I C T ,EASTERN PROVINCE

JOINT M U N ICIPAL PENSION K eeley, E. G. .FUND, N A T A L

JOINT M U N ICIPAL PENSION Hattingh, J. H. P. F U N D , O R A N G E FR E E STATE

JOINT M UNICIPAL PENSION C omley, G. W . .FUND, T R A N SV A A L

L O C A L AUTHORITIES COM- Borckenhagen, C . L. F. MITTEE

L O C A L GOVERNMENT AD - V an der Spuy, J . J . S. VISORY BOARD

Representative.

Senior A dm in istrative Officer Local Government (Finance).

Provincial Auditor.

Urban Areas Representative,

do.

Director.Deputy Director.Senior Clerk.

Vice-President.

Secretary.

President.Secretary.Council Member.

Representative.Representative.

Member.

Secretary.

Secretary.

Secretary.

Chairman.

Chairman.

[ 6 ]

Hon. Members, Members, R epresentatives and V isitors (contd.)

L O C A L HEALTH COMMIS' SION, N A TA L

McLennan, J. . G reen, E. . Turton, A . J. . Mooney, H. C . .

Chairman. Commissioner. Commissioner. Deputy Secretary.

N ATIO N AL HOUSING AND PLANNING COMMISSION

V an der W alt, J. H. Chairman.

ORANGE FREE STATE PRO ' V IN C IA L AUD IT

De W it, J. F. . Provincial Auditor.

PERLURBAN ARE AS HEALTH BOARD

Muller, B.G eldenhuys, S. J . J. v. V . .

Chairman.Councillor.

V an der Merwe, G. J. VORSTER, J . P. .Phillips, H. B. .R ouse, R. P.

S wart, J. H.Roux, B. G. E. .Nel, H. J .....................................

Councillor.Councillor. Secretary/Treasurer. Deputy Secretary/Trea'

surer.Assistant Treasurer.Chief Accountant.Chief Accountant.

SOUTH AFRICAN A SSO C IA ' TION OF M U N ICIPA L EM' PLOYEES

Bloemink, R. President.

STEEL A N D ENGINEERING INDUSTRIES FEDERATION OF SO UTH A FR IC A

Drummond, E. P. Director.

S T E W A R T , STEYN & C O M ' PANY

Sherry, O. J. Representative.

ST U D E N T S’ SO C IE T IE S OF THE INSTITUTE OF MUNI' C IPA L TREASURERS AND A C C O U N TA N T S, S.A . (IN C.)

W iggill, D. T. B. Hutcheson, A . I. V enter, H. H. S. G eyer, D. A . .

Eastern Province (Cape). Transvaal.Transvaal.Western Province (Cape).

TH E S O U T H A F R I C A N TREASURER

Matthews, J . W . Acdng Editor.

T R A N S V A A L P R O V IN C IA L A U D I T ............................................

De la Rey, W . D. G raham, J. O. S.

Provincial Auditor. Senior Auditor.

UNITED M UN ICIPAL EXECU' TIVE OF SO UTH A FR IC A

V an den Berg, L. J . . Strydom, D. P.

President.Secretary/Treasurer.

UNIVERSITIES . . . . W alker, R. S. .V iljoen, D. J. .G ey van Pittius, E. F. W. C loete, J. J. N.K riek, D. J.ClLLIERS, J. A. .J ordan, R. J. P.

Cape Town.Potchefstroom.Pretoria.Pretoria.Pretoria.South Africa. Witwatersrand.

ALBERTON . . . . V lok, N..................................... City Treasurer.

AMANZIMTOTI Haslam, R. Maisch, L. H. .

Councillor. Town Treasurer.

[ 7]

H on. Members, Members, R epresentatives and V isitors (contd).

BARBERTON . . . . Nettmann, H. W . F. L e Sueur, J . J.


BEAUFORT W EST . V an Staden, M. Assistant Town Treasurer

B E D F O R D V IE W V IL L A G E C O U N C IL

Bawden, F. R. . Foucheé, H. van N. .

Councillor.Town Clerk and Treas

urer.

BELLVILLE . . . . West, A . J. Braam, P. N.


B E N O N I ............................................ Nestadt, M. Heighway, A . D.


B E T H A L ............................................ V isser, G. J. J. . Town Treasurer.

BETHLEHEM . . . . Paxinos, A. Reinecke, P. J. .


BLOEMFONTEIN J anse van Rensburg, I. W . City Treasurer.

BOKSBURG . . . . V an Heerden, F. J. . JOUBERT, H. J. S.


BRAKPAN . . . . K alk , G. . L ister, L. C. .


BRANDFORT . . . . Pienaar, B. D. . Town Treasurer.

BREYTEN ............................................ Botha, M. J. Assistant Town Treas/ urer.

B R IT S....................................................... Erasmus, H. R. . Du Randt, J . J . .

Councillor.Deputy Town Treasurer.

BROKEN H ILL . . . . R ichards, J. C . . Town Treasurer.

B U LA W A Y O . . . . W igg, C. C . . City Treasurer.

C A L E D O N D IV IS IO N A L C O U N C IL

Maree, J . S. Assistant Secretary.

C A P E D IV ISIO N A L CO UN/ C IL

Miller, A . Foster, F. D.

Councillor.Accountant.

CARLETO N VILLE . G eldenhuys, B. N. D. Jacobs, J . P.De L ange, J. F.

Councillor.Town Treasurer.Deputy Town Treasurer.

CH RISTIAN A . . . . Rossouw, M. W . C . . Town Treasurer.

C RA D O C K . . . . Mostert, D. T. B. Town Treasurer.

DE A A R ............................................ Zwiegers, L. J . . ClLLIERS, P. G. .

Town Treasurer. Accountant.

DESPATCH . . . . Botha, P. J. B. . Town Treasurer.

D U N D E E ........................................... K upferman, K. K. Town Treasurer.

H on. M embers, M embers , R epresentatives and V isitors (co n td .)

D U R B A N ............................................ Haygarth, G. . . Deputy City Treasurer(Accounting and Finance).

Bevan, A . F. Member.EAST LONDON A rmist, B. Councillor.

C halmers, J . G. . City Treasurer.EAST LONDON DIVISIONAL W esson, A . F. . . Secretary and Treasurer.

C O U N C IL

EDENVALE . V an der W alt, G. H. . Councillor.Mulder, R. T. . . Town Treasurer.

E L SB U R G ............................................ Du Toit, F. A . . . Town Treasurer.EMPANGENI . . . . Sherwood, E. A . . Town Clerk and Treas/

urer.ERMELO ............................................ Greyling, J . A . N. . . Town Treasurer.FRANKFORT . . . . Gross, S. J. . Councillor.

GEORGE ............................................ Niehaus, J. A . . . Town Treasurer.

GEORGE DIVISIONAL CO U N , CIL

Barnard, D. M. . Assistant Secretary.

GERMISTON . . . . Botha, J . H. . Councillor.L eppan, G. L. . . Councillor.R eid, R. M. . City Treasurer.

GLENCOE............................................ V ILJO EN , B. J . . . Councillor.Smit, C . S. Town Treasurer.

GOODWOOD . . . . S imon, J . . . Councillor.Thompson, G. Town Treasurer.

GRAAFF-REINET . Pienaar, H. J . . Town Treasurer.

G RAH AM STOW N . L ofting, A . D .. . City Treasurer.GREYTOWN . . . . C lare, A . M. . . Town Treasurer.

G W E L O ............................................ Ereaut, P. A . . . Town Treasurer.HARRISMITH . . . . K ilian, A . P. . . Town Treasurer.

HEIDELBERG. T V L .. R obertson, F. W . R . . . Councillor.H urter, V . H. . . Town Treasurer.

HEILBRON . . . . Fourie, C . P. C. . Town Treasurer.HENNENMAN . . . . V an R ooyen, D. R. . Town Treasurer.JOHANNESBURG . L ewis, P. R. B. . . Councillor.

Bartleet, E. J . . . Member.Bowman, J . M. . . Member.C arine, W . Member.De V illiers, A . J . . . Member.Elffers, P. W . B. . Member.Fenix, D. G. M. . Member.Henderson, R. C . B .. . Member.

[9 ]

H o n . M e m b e r s , M e m b e r s , R e p r e s e n t a t i v e s a n d V i s i t o r s ( c o n td . )

JO H AN N E SBU RG (continued) . Huggard, J. F. . K ruger, B. J . . L ombard, R.Maile, L . T. N. Marsden, H.Pern, R. N. Reynders, J. C . T. . S lE B E R T , W .Steyn, D. P.Strick, E. R. Summers, J . F. . W atson, C . F. .

. Member.

. Member.

. Member.

. Member.

. Member.

. Hon. Life Member.

. Member.

. Member.

. Member.

. Member.

. Member.

. Member.

KEETMANSHOOP . Kruger, S . . Town Treasurer.

KEMPTON PARK . W engel, Mrs. I. A rnold, O. V.

. Councillor.. Town Treasurer.

K EN H ARD T D IV ISIO N A L C O U N C IL

Gouws, J . H. Mocke, C . H. .

. Councillor.

. Secretary/Treasurer.

KIMBERLEY . . . . M ilne, A . G. . City Treasurer.

KING W ILLIA M ’S TOW N Grubb, A . M. . Town Treasurer.

K I T W E ............................................ W entzel, W . E. Biggs, P. R.

. Town Treasurer.

. Chief Internal Auditor.

KLERKSDORP . . . . De Kock, C . J . . R osin, M. .

. Councillor.

. Town Treasurer.

KROONSTAD . . . . Samuel, J . P. . Town Treasurer.

KRUGERSDORP J onker, J . P. C arter, A .


KURUM AN . . . . Flemming, P. J . . Town Treasurer.

LADYSM ITH . . . . C larence, D. W . L . . Matzopoulos, P.

. Councillor. Town Treasurer.

LICHTENBURG J onker, F. A . . . Councillor.

LO UIS TRICH ARD T Bronkhorst, P. C . . V an R ooyen, C . J . .

. Councillor.

. Town Treasurer.

LYTTELTON . . . . T oerien, D. F. . Du Plessis, P. J.


MAFEKING . . . . Botha, A . . Booysen, N.

. Councillor.

. Town Treasurer.

MALMESBURY De K lerk, J. . Town Treasurer.

M ARGATE . . . . R ees, W . A . . Councillor.

MESSINA HEALTH COMMIT' T E E ............................................

Smit, A . D. Nel, C . J.

. Councillor.

. Town Treasurer.

MIDDELBURG, CAPE . Hough, S. J . S. . . Town Treasurer.

M O SSE L BAY D IV ISIO N A L C O U N C IL

Olckers, M. J . .

[ 1 0 ]

. Secretary/Treasurer.

Hon. Members, Members, R epresentatives and V isitors (contd.)NDOLA . . Sysum, L. A . Town Treasurer.NELSPRUIT . Blignaut, J. H ., Town TreasurerN EW CASTLE . . Ryley, P. H.

Botha, J. L.Councillor. Town Treasurer.

NYLSTROOM . . Scholtz, G. J . . CONRADIE, P. J . .

Town Treasurer. Town Clerk.

ORKNEY . . L uckhoff, H. J. Steyn, J . N. H.


OUDTSHOORN . L e R oux, G. H. Bruyns, M. M. .


P A A R L . . K rige, W . A . . Deputy Town Treasurer.

P A A R L DIVISIONAL C IL

C O U N ' C oetzee, J . A . B. Treasurer.

PARO W . . D e V ries, R. Member.

PIETERMARITZBURG . W ood, C. W . . Councillor.

PIETERSBURG . . . V an R ensburg, C. J . S. J. Mathee, P.


PINETOWN . . W iseman, N. H. Councillor.PORT ELIZABETH . . Toerien, H. J . D. Councillor.

P O R T E L IZ A B E T H D I V I ' Bloom, D................................... Councillor.SIO N AL C O U N C IL . C rage, R ................................... Secretary/T reasurer.

PORT SHEPSTONE . . Borain, L. W . A . Member.

POTCHEFSTROOM . . Harmse, G. Town Treasurer.

PRETORIA . R utowitz, R. .Rode, H.....................................V an R ensburg, B. J. J.

D ibble, W . H. .Botha, D.G regg, J . H.

JORDAAN, M. V . .L outtit, R. I. .Solomon, I.V an der Bank, D. J.V an Zyl, J . J . de V. . W illiams, A . E.

Councillor.City Treasurer.Member: Conference Sec'

retary.Member.Member.Controller of Stores and

Buyer.Internal Auditor Member.Visitor.Member.External Auditor. Member.

PRETORIA NO RTH. . C oetzee, Z. C . . O osthuizen, J . . Rademeyer, J. D. P. . Breytenbach, W . H. J.

Brink, D. J.Botha, A . J.

L 11 ]

Councillor.Councillor.Councillor.Town Clerk and Trea'

surer.Deputy Town Treasurer. Accountant.

H on. Members, Members, R epresentatives and V isitors (contd.)

QUEENSBURGH R ussell, J. N. . L arkan, L . E. .


QUEENSTOWN Nicholls, H. C. Town Treasurer.QUE QUE . . . . C hatfield, J. B. Town Treasurer.RANDBURG . . . . Oberholzer, C . L. .

V an der Hoven, T. A .Councillor. Town Treasurer.

RANDFONTEIN V an der W esthuizen, C . J. Bromham, C . G.


R O B E R T SO N D IV IS IO N A L C O U N C IL

Bruwer, E. J.De K lerk, B. D.

Councillor.Secretary/Treasurer.

ROODEPOORT Louw, Mrs. G. J.W essels, J. M. .V an der W alt, N. . Mail, F. W . H. . .

Councillor. Councillor. Town Treasurer. Member.

RUSTENBURG . . . . Faber, F. P. Marx, F. E.

Town Treasurer. Town Clerk.

SALISBURY . . . . Olley, C . . . .Steer, W ...................................Galletly, I. A . B. .

Alderman.Councillor.Member.

SASOLBERG VILLAG E MANAGEMENT BO A RD .

Stegmann, J. A . ZlETSMAN, C . F.


SCHWEIZER.RENEKE . Fourie, S. E. T . . Assistant Town Clerk and Treasurer.

SIMON’S TOW N L illey, J. H. F .. Town Treasurer.

S P R I N G S ............................................ Bornman, C . J. . Thuynsma, J. C .V an R ooyen, H. J. . J ohnston, N. C .

Councillor. Councillor. Town Treasurer. Member.

S T ANDE R T ON. . . . Naude, J. J. . . Town Treasurer.

STANGER . . . . W eightman, H. Town Treasurer.

STELLENBOSCH . Hendriks, H. J. Town Treasurer.

STILFONTEIN HEALTH COM . MITTEE

V osloo, C . I. . Dakers, P.


S T R A N D ............................................ Bellingan, W . H. Town Treasurer.

THABAZIMBI HEALTH COM . MITTEE

Muller, L. B. . Branders, W . H. S. .


UITENHAGE . . . . Boliter, A . C. . Town Treasurer.U M T A L I ............................................ Kemp, A . S.

Glover, B. S. .Councillor. Town Treasurer.

VANDERBIJLPARK . V an der W alt, A . A . C ampbell, L. S. Benadie, S. J. .Du Plessis, J. H. Fourie, A . F.

Councillor. Town Treasurer. Member. Member. Member.

VEREENIGING . . . . C ombrinck, E. . R eid, E. S.


[ 1 2 ]

H o n . M e m b e r s , M e m b e r s , R e p r e s e n t a t i v e s a n d V i s i t o r s (contd.)V ICTO RIA WEST . V an W yk, L. J. Town Treasurer.

V IR G IN IA V IL L A G E M A N - AGEMENT BOARD

G ous, H. J. Town Treasurer.

V O LK SRU ST . . . . De K ock, D. J . . Bester, G. H. P. Erasmus, G. J. .

Councillor.. Town Treasurer.

Town Clerk.

V R Y B U R G D I V I S I O N A L CO U N C IL

D e W et, P. G. J. . Secretary/Treasurer.

V R Y H E ID ........................................... C olley, S. K ruger, J. C.


W A LV IS BAY . . . . Botma, M. C. . V an den Berg, M. J.


W ARM BATH S . . . . JORDAAN, J. J. V isser, H. J.


WELKOM ............................................ Munro, J . . Swart, W . C. .

. Councillor. Town Treasurer.

WEL L I NGT ON. . . . G roenewald, L. J. L. . Town Treasurer.W ESTONARIA W ills, R. M.

Eckard, H. J. .Councillor.

. Town Treasurer.WINDHOEK . . . . Labuschagne, J. C. . Town Treasurer.W IT BA N K ............................................ Fouché, A . F. .

Swarts, P. J.. Councillor.

Town Treasurer.W O LM A RAN SSTA D V an der W esthuizen, J. P. Town Treasurer.W ORCESTER . . . . Slabbert, B. . Town Treasurer.

Apologies for absence were received from the following, regretting their inability to attend:

Mr. H. W . A nderson.Mr. V . D. C allanan.C ape J oint Pension Fund, D istrict No. 2, Northern C ape.C ape Province Municipal A ssociation.D irector of C ensus and Statistics.Mr. L. F. D raper.Professor O. P. F. Horwood, U niversity of Natal.Mr. H. A . Hugo.Mr. R. S. K oller.L ocal G overnment A ssociation of Southern Rhodesia.L ower South C oast Regional W ater Supply C orporation.C ouncillor C. A . Milne.Minister of Bantu A dministration and Development.Minister of C oloured A ffairs, of C ommunity Development and of Housing. Minister of Finance.Minister of the Interior.Minister of L ocal G overnment, Northern Rhodesia.Minister of L ocal G overnment, Nyasaland.Minister of L ocal G overnment, Southern Rhodesia.Natal Municipal A ssociation.

[13]

Northern C ape (K imberley) Students’ Society of the Institute of Municipal

Treasurers and A ccountants, S .A . (Incorporated).O range Free State Municipal A ssociation.President, Institute of Town C lerks of Southern A frica.President, Municipal A ssociation of Northern Rhodesia and Nyasaland. Provincial A uditor, Natal.Provincial A uditor, South-W est A frica.Provincial Secretary, Natal.Provincial Secretary, O range Free State.Rhodes U niversity.

Professor C. S. R ichards.Secretary for Finance.Secretary for the Interior.

Secretary for L ocal G overnment, Northern Rhodesia.Secretary, Pinetown Regional W ater Supply C orporation.Secretary to the Treasury, Nyasaland.Secretary to the Treasury, Southern Rhodesia.

Southern Rhodesia L ocal A uthorities J oint Pension and W idows’ and O rphans’ Fund.

Mr. D. G. Tees, Town C lerk and Treasurer, Pinetown.U niversity C ollege of Rhodesia and Nyasaland.

U niversity of Natal.U niversity of O range Free State.

Hon. Members, Members, R epresentatives and V isitors (contd.)

MunicipalitiesA delaideA liceA liwal North Bethulie Blantyre and

L imbeBonnievaleBredasdorpBronkhorstspruitC aledonC athcartC eresC hingolaC itrusdalC larensC locolanDe DoornsDewetsdorpEstcourt

Municipalities ( cont.) Ficksburg Fish Hoek Fort Beaufort Fort V ictoria G atooma G onubie G ordon’s Bay Hermanus HowickK eiskama HoekK enhardtK ingsburgiiK loofK nysnaK osterK uilsrivierL ivingstoneLuanshyaLusaka

Municipalities ( cont.)LydenburgMcG regorMatatieleMeyertonMilnertonMooi R iverMoltenoMoorreesburgMossel BayMurraysburgNew BethesdaNigelNoupoortPeddiePiet RetiefP lK E T B E R GPinelands Plettenberg Bay Port Nolloth

Municipalities ( cont.)Port ShepstoneReddersburgR iversdaleRobertsonSaldanhaSeymourSomerset EastSomerset W estS pringfonteinStutterheimU mtataUVONGOV redeV ryburgW almerW arrentonW lN B U R GZastronZeerust

Hon. Members, Members, Representatives and V isitors (contd.)Divisional Councils Div. Councils ( cont.) Div. Councils (cont.) Div. Councils (cont.)A lbert Humansdorp Malmesbury SteynsburgA lexandria Indwe Middelburg StutterhemBarkly W est Bathurst

K imberley K ing W illiam’s

Montagu SWELLENDAM

Beaufort W est TownMount C urrie UlTENHAGE

Bredasdorp K nysna OUDTSHOORN V aalhartsC alvinia K omga Pearston V enterstadDe A ar Ladismith, C ape Q ueenstown V ictoria W estHerbert Maclear Stellenbosch W orcester

Village Council Village Board of Town Boards TownshipsW akkerstroom Management Richmond G lenashley

A llanridge U mtentweniV erulam

Harding

TownBENONI .

B U LA W A Y O

CAPE TOW N

DURBAN

EAST LONDON .

GERMÏSTON .

JOHANNESBURG

PIETERMARITZBURG

PINETOWN .

PORT ELIZABETH

PRETORIA .

SA LISBU RY .

SPRINGS

U M TALI

VEREENIGING

AMANZIMTOTI .

BEDFORDVIEW .

BELVILLE .

BENONI .

BLOEMFONTEIN .

BOKSBURG .

BRAKPAN .

BU LA W A Y O

LIST OF MEMBERSA S A T 31 st JA N U A R Y , 1964

F e l l o w s .Name

Heighway, A . D.

W igg, C . C.

McW illiams, J. .Morris, M. . . . W alker, R. S. .

G orven, O. D. .

C halmers, J. G.

Reid, R. M.

C arine, W .Holmes, I. Q.

A nderson, W . G.

Tees, D. G.

J envey, F. E.

R ode, H.......................................

Martin, H. R.

C owden, J. W . .

G lover, B. S.

R eid, E. S ....................................

A s s o c i a t e s .Maisch, L. H.

Fodcheé, H. van N. .

Braam, P. N.

C ampbell, D.C omley, G. W . .

J anse van R ensburg, I. W . .

JO U BER T, H. J. S.Nortje, P. J.

L ister, L. C.V an den Berg, W . J. .

Birchall, R. J. .Blyth, V . .G arvie, P. C.G reig, A . A . Higginbottom, J. A . .

[ 16 ]

Designation Town Treasurer.

City Treasurer.

Deputy City Treasurer.Assistant City Treasurer (Acc.). City Treasurer.

City Treasurer.

City Treasurer.

City Treasurer.

Deputy City Treasurer.City Treasurer.

City Treasurer.

Town Clerk and Treasurer.

City Treasurer.

City Treasurer.

City Treasurer.

Principal Officer (Finance).

Town Treasurer.

Town Treasurer.

Town Treasurer.

Town Clerk and Treasurer.

Town Treasurer.

Deputy Town Treasurer. Secretary, Joint Municipal Pen/

sion Fund, Transvaal.

City Treasurer.

Town Treasurer.Town Treasurer’s Department.


City Treasurer’s Department. City Treasurer’s Department. City Treasurer’s Department. City Treasurer’s Department. Deputy City Treasurer.

L ist of M embers (con tin u ed )

Town Name DesignationCAPE TOW N . A lger, J . H. . City Treasurer’s Department.

A llan, A . R. . City Treasurer’s Department.Boyes, M. G. W . . City Treasurer’s Department.C ameron, B. E. . . City Treasurer’s Department.C loete, G. H. . . City Treasurer’s Department.C oleman, T. . City Treasurer’s Department.C opeland, F. W . . City Treasurer’s Department.C osnett, C . W . . City Treasurer’s Department.C urtayne, C . F. . City Treasurer’s Department.Daly, G. B. . City Treasurer’s Department.Egner, C . W . A . . City Treasurer’s Department.Geyer, D. A . . City Treasurer’s Department.Grendon, E. G. . . City Treasurer’s Department.H ill, E. C . . . City Treasurer’s Department.Hunter, S. R. . City Treasurer’s Department.Kerr, N. . City Treasurer’s Department.K ingma, L . W . . . City Treasurer’s Department.Knight, R. H. M. . City Treasurer’s Department.Koning, J . R. . City Treasurer’s Department.L ittlefield, P. A . . City Treasurer’s Department.Manca, J . S. . City Treasurer’s Department.McKay, A . F. J. . City Treasurer’s Department.Miller, E. A . . City Treasurer’s Department.Moles, E. C . . City Treasurer’s Department.Moore, D. V . L. . Cape Divisional Council.Myburgh, V . M. F. . City Treasurer’s Department.Price, F. B. . City Treasurer’s Department.Schonegevel, V . H. . . City Treasurer’s Department.Thresher, C . L. . City Treasurer’s Department.V an Breda, D. G. . Cape Divisional Council.

CHINGOLA . . Parkin, D. A . . Town Treasurer.

DESPATCH . . Botha, P. J. B. . . Town Treasurer.

DUNDEE . Stanbury, C . S . . . Town Treasurer.

DURBAN . A tcheson, R. I. . . City Treasurer’s Department.C allanan, V . D. . City Treasurer’s Department.C lark, L. C . . City Treasurer’s Department.Damp, D. H. . Assistant City Treasurer (Staff).Deighton, F. A . . Assistant City Treasurer (Reve/

nue).Gilroy, B. M. . City Treasurer’s Department.Haugen, H. E. . . City Treasurer’s DepartmentHaygarth, G. . Deputy City Treasurer.

(Accounting and Finance).McL achlan, A . R. City Treasurer’s Department.Paterson, R. W . . City Treasurer’s Department.POHL, W . . . City Treasurer’s Department.R oyal, H. E. . City Treasurer’s Department.Shenker, A . N. . . City Treasurer’s Department.Stone, W . B. . City Treasurer’s Department.W ard, M. . . City Treasurer’s Department.W arwick, D. G. de V. . City Treasurer’s Department.W hyte, F. E. . City Treasurer’s Department.W ilson, D.

[ 17 ]. City Treasurer’s Department.

L ist of Members (continued)

Town Name DesignationEAST LONDON . D ickenson, K. B. . City Treasurer’s Department.

Howell, L. J. . City Treasurer’s Department.Pickerill, T. F. . . City Treasurer’s Department.W esson, A . F. . East London Divisional Council.

FISH HOEK . Fry, E. H. . Asst. Town Clerk and Treasurer.GEORGE Niehaus, J . A . . . Town Treasurer.

GERMISTON . Deetlefs, R. . City Treasurer’s Department.Stals, J. P .. . City Treasurer’s Department.

GOODWOOD Thompson, G. . Town Treasurer.

G RAH AM STOW N L ofting, A . D. . City Treasurer.

GREYTOWN . C lare, A . M. Town Treasurer.

GROOTFONTEIN. Stander, H. J . B. Town Treasurer.

GWELO . W illiams, A . . Town Treasurer’s Department.

H A RLO W , EN G LA N D . Brigham, T. A . . . Town Treasurer’s Department.

HERMANUS . Hulley, H. G. . . Town Clerk and Treasurer.

JOHANNESBURG A shbury, J . R . . . Organisation and Methods Department.

Barraclough, A . D. . . City Treasurer’s Department.Bartleet, E. J . . City Treasurer’s Department.Bennett, C. R. . . City Treasurer’s Department.Bolton, M. E. . City Treasurer’s Department.Bowman, J . M. . City Treasurer’s Department.Brewin, L. H. . City Treasurer’s Department.C osijn, J . M. . . . City Treasurer’s Department.COURLAND, L. J. . City Treasurer’s Department.C owie, B. C. . City Treasurer’s Department.CUMMING, H. G. . . City Treasurer’s Department.Dennis, G. . . City Treasurer’s Department.De V illiers, A . J. . City Treasurer’s Department.Fenix, D. G. M. . . City Treasurer’s Department.Flinn, N. J. . City Treasurer’s Department.G illman, M. . City Treasurer’s Department.Henderson, R. C . B. . . City Treasurer’s Department.Huggard, J . F. . . City Treasurer’s Department.Hutcheson, A . I. . City Treasurer’s Department.Jeoffreys, M. T. . City Treasurer’s Department.K ietzman, A . L. . City Treasurer’s Department.K ruger, B. J. . Peri/urban Areas Health Board.Le R oux, W . R. J. F. . City Treasurer’s Department.Lombard, R. . City Treasurer’s Department.Maile, L. T. N. . . City Treasurer’s Department.Marsden, H. . City Treasurer’s Department.Matthews, J. W . . City Treasurer’s Department.Nell, P. A . . City Treasurer’s Department.Penrose, E. M. . . Assistant City Treasurer (Non/

European Affairs and Hou/ sing).

Pienaar, A . J.

[ 18 ]

. City Treasurer’s Department.


Town Name DesignationJOHANNESBURG . . Pienaar, J . M. . . City Treasurer’s Department.

( contd.) POLGLASE, J . G. .Pratt, F. N.Pretorius, P. J . . Reynders, J . C . T.

R ichardson, R. F. Rosen, M. .S chneeberger, A . G .H . SlEBERT, W .Smith, A . W . R.

Smith, H. .Smith, L. C.Solomon, C . R. A . Steyn, D. P.Strick, E. R.Summers, J . F.Toner, N. D.V enter, H. H. S. W aldron, L. A . W atson, C . F. .




. Assistant City Treasurer (Accounting).





. Assistant City Treasurer (Administrative).











KIMBERLEY . Dunn, S. C. G reen, D. J. Milne, A . G. W helan, F. W . .



. City Treasurer.

. City Treasurer’s Department.KINGSBURGH Magennis, D. B. . Town Treasurer.

KITWE . Biggs, P. R.L e C ount, F. H. W entzel, W . E ..

Town Treasurer’s Department. . Town Treasurer’s Department.

Town Treasurer.

KLERKSDORP R osin, M. . Town Treasurer.

LADYSMITH . Matzopoulos, P. . Town Treasurer.

LYDENBURG Froneman, P. J . . Town Treasurer.

MOORREESBURG . Botha, P. K. Town Clerk and Treasurer.

MOSSEL BAY Steyn, C. K. Town Treasurer.

NIGEL . J ooste, B. . Town Treasurer.

ORKNEY Steyn, J. N. IT. . Town Clerk and Treasurer.

PA RO W . Bester, J . M. De V ries, R.

Deputy Town Treasurer. Town Treasurer.

PIETERMARITZBURG . C larke, A . C . . D onaldson, D. R.

K eeley, E. G.

Assistant City Treasurer. Secretary, Local Health Corn/

mission, Natal.Secretary, Natal Joint Municipal

Pension Fund.

PIETERSBURG Mathee, P . . Nieuwoudt, G. S.

[ 19 ]



Town Name DesignationPINELANDS . . Raberg, A . B.

S impson, G. H. .Town Treasurer’s Department. Town Treasurer.

PINETOWN . . Draper, L. F. Secretary, Pinetown Regional Water Supply Corporation.

PORT ELIZABETH . A ldis, A . S.C rage, R .....................................

Nefdt, W . S.

City Treasurer’s Department. Secretary/Treasurer, Port

Elizabeth Divisional Council. City Treasurer’s Department.

PORT SHEPSTONE . Borain, L. W . A . Secretary, Lower South Coast Regional Water Supply Cor/ poration.

POTCHEFSTROOM . Harmse, G. Town Treasurer.

PRETORIA . . Botha, D.....................................C ruywagen, C. D.D ibble, W . H. .J anse van Rensburg, B. J. . Ryder, A . D.V an der Bank, D. J. .Vos, L. P. G. .

City Treasurer’s Department. Peri/Urban Areas Health Board. City Treasurer’s Department. City Treasurer’s Department. City Treasurer’s Department. City Treasurer’s Department. City Treasurer’s Department.

ROODEPOORT/ J acobs, J. J.V an der W alt, N.

Town Treasurer’s Department. Town Treasurer.

SALISBURY . . Derry, J. S.G alletly, I. A . B. Hurst, J. F. Stewart, R. A . .

City Treasurer’s Department. City Treasurer’s Department. City Treasurer’s Departmer. Deputy City Treasurent.

SPRINGS . J ohnston, N. C. Sachse, N. C . J.

City Treasurer’s Department. City Treasurer’s Department.

STILFONTEIN . Hobbs, J. J. Secretary/Treasurer, Stilfontein Health Committee.

STRAND . Behm, E. T.Bellingan, W . H.

Town Treasurer’s Department. Town Treasurer.

UITENHAGE . . Boliter, A . C . .W est, N..................................


U M TALI . Stacey, N. B. Assistant Town Treasurer.

VANDERBIJLPARK . Benadie, S. J. C ampbell, L. S. Du Plessis, J . H. Fourie, A . F. S cheeper, G. A .

Town Treasurer’s Department. Town Treasurer.Town Treasurer’s Department. Town Treasurer’s Department. Town Treasurer’s Department.

VEREENIGING . Hugo, H. A . Town Treasurer’s Department.VIRGINIA . Gous, H. J ................................... Town Treasurer’s Department.

W ARM BATH S . VlSSER, H. J. Town Treasurer.WINDHOEK . . A rnold, A . C . .

C ronje, J. H.Town Treasurer.Town Treasurer’s Department.

W ORCESTER . Ingram, J . A .[ 20 ]

Town Treasurer.

L i s t o f M e m b e r s ( continued)

S p e c i a l C l a s s .(Not employed in the Financial Department o f a Local Authority)

A nderson, H. W .Be van, A . F. (Hon. Life Member) Davis, J. W .Elffers, P. B. W . (Hon. Life Member)

Fellows.G ooch, S. C.G reen, E. (Hon. Life Member) G riffin, W . F.J oubert, P. R.R oller, R. S. ( Hon. Life Member)

Mail, F. W . H. Meltzer, F. A . Stead, P. E.(Hon. Life Member)

Beyers, E. L. Brierley, T. H. C halmers, G. C hannon, R. D. C onn, R. J. C oomer, J. H. D ove, C . M.De K ock, C. J. Drummond, E. P. Dunn, K. F. Edge, A . D. Edmeades, I. G. Fletcher, G. C. Flinn, E. R.

Associates.Foulds, F. C. G ordon, N. E. G ordon, R. Henwood, J . Q. Heron, D.Hornby, J.Howard, J. H. L. G. Huntley, B. K ichenside, J. A . C. K roon, G. C. K upferman, K . K. Lazar, M. J. Louttit, R. I.

Lyle, A . J.Mackenzie, W . MacLennan, J. W . Mann, A . M.Mason, I. P.Millar, W .Morgan, I. P. Nekridge, S. Pletnick, A . A . Reed, E. H. R obertson, B. S. Robertson, W . D. H. Ross, G.

Sadie, J . J . van L ill Sayer, E. J.Shore, A .Sheldon, H. M. Stewart, F.

(Hon. Life Member) Steyn, M.Taylor, H. S.Tozer, D. E. W atkinS'Baker, J. B. W illiams, A . E. W illiams, E. M. W illiams, G. R.

H o n o r a r y M e m b e r s .

Town Name DesignationAMANZIMTOTI . . Coun. J. E. C raven

Coun. R. HaslamMayor.Chairman ofFinance Committee.

BARBERTON . Coun. O. E. Braithwaite . Mayor.

BEDFORDVIEW . Coun. E. Kirkby .

Coun. D. S. E. Millard

Chairman of Management Coni' mittee.

Chairman of Village Council.

BELLVILLE . . Coun. A . J. W est. Chairman ofFinance Committee.

BENONI . . Coun. A . P. C ronje . Coun. M. Nestadt, j .p .,m.p .c. .

Mayor.Chairman of Management Com' mittee.

BLOEMFONTEIN . . Coun. A . D. V iljoen . Coun. P. H. V an der L inde

Mayor.Chairman ofFinance Committee.

BOKSBURG . . Coun. F. J. van Heerden Coun. A . P. U.

Scribante, j .p .

Mayor.Chairman of Management Com'

mittee.

BRAKPAN . . Coun. G. Troskie Chairman of Management Com' mittee.

[ 21 ]

L ist of Members (continued)Town

BU LA W A Y O .Name

Coun. A . M. Butcher Aid. S. H. Millar

DesignationMayor.Chairman ofFinance Committee.

CAPE TOW N Coun. W . J. Peters Coun. I. O spovat


CAPE DIVISIONALCO U N C IL Coun. J . J. Blanckenberg . Chairman ofFinance Committee.

CHINGO LA . Coun. H. F. G affney . Chairman ofFinance Committee

DUNDEE Coun. C. D. R itson . Chairman of Finance and Gene/ ral Purposes Committee.

DURBAN Coun. C . A . Milne Coun. S. J. Smith


EAST LONDON . Coun. L. Laden . Coun. B. A rmist .


FISH HOEK . Coun. E. T. W . Bishop Chairman ofFinance Committee.

GERMISTON . Coun. J . H. Botha Chairman of Management Com/ mittee.

GOODWOOD Coun. J. Simon . Chairman ofFinance Committee.

HARRISMITH Coun. J. J. M. Human . Coun. J . C hodos .


JOHANNESBURG . Coun. P. M. Roos Coun. P. R. B. L ewis .

R. N. Pern, Esq. .

Mayor.Chairman of Management Com/

mittee.Ex/Secretary, Institute of Munich

pal Treasurers & Accountants, S.A . (Inc.) (Life Member).

KEMPTON PARK Coun. Mrs. I. W . W engel . Coun. F. W . Stegmann

Mayor.Deputy Chairman of Manage/

ment Committee.

KIMBERLEY . Coun. G. S. Eden, m.p. Coun. E. O. Davis


KING W ILLIA M ’STOW N Coun. H. A lperstein

Coun. C . J. BakkesMayor.Chairman ofFinance Committee.

KROONSTAD Coun. C . L. de J . Borchardt Chairman ofFinance Committee.

KRUGERSDORP . Coun J . E. du Plessis . Coun. P. J. M. du Plessis .

Mayor.Chairman of Management Com/

mittee.

LADYSMITH . Coun. D. W . L. C larence . Deputy Mayor.

L O C A L HEALTH CO M . MISSION, N A TA L

J. McL ennan, Esq. A . J. Turton, Esq.

Chairman.Commissioner.

MOORREESBURG . Coun. J. C . van Niekerk . Mayor.

r 22 ]


NEW CASTLE

OUDTSHOORN .

PARO W

PIETERMARITZBURG .

PIETERSBURG

PINELANDS .

PINETOWN .

PORT ELIZABETH

PORT ELIZABETH DIVISIO NAL CO U N C IL

POTCHEFSTROOM

PRETORIA .

QUEENSTOWN .

RANDFONTEIN .

READING, ENGLAND .

ROODEPOORT .

SALISBURY .

SPRINGS

NameCoun. P. H. Ryley

Coun. G. H. le Roux .

Coun. C . C . Stassen .

Coun. G. J . R. Bulman C oun. C . W . W ood

Coun. Dr. T. L. Boshoff . Coun. C . J. van Rensburg .

Coun. S. R. Peers

Coun. H. A . F. Dettman Coun. N. H. W iseman

Coun. J. G raham Y oung Coun. H. J. D. Toerien

C oun. G. F. Nicholls

Coun. J. C. L. V igne .

Coun. Prof. D. J. van Rooy .

Coun. R. Rutowitz

W . D. de la Rey, Esq.

Coun. J . C . Marshall Coun. D. J . Malan

Coun. J. J.Zwiegelaar, m.p.c.

G. C . J ones, Esq., f.i.m.t.a ., f .c .a ., Borough Treasurer, Reading

Coun. H. P. P. Mulder

Coun. W . Steer Aid. C. O lley .

Coun. F. F. Deysel, m.p.c . . Coun. M. P. K otze

DesignationDeputy Mayor and Chairman of

Finance and General Purposes Committee.

Chairman ofFinance Committee

Chairman ofFinance Committee.

Mayor.Chairman of Finance and Gene

ral Purposes Committee.

Mayor.Chairman of Management Com

mittee.

Chairman ofFinance Committee.

Mayor.Chairman ofFinance and Gene



ral Purposes Committee.Deputy Chairman ofFinance and

General Purposes Committee.

Chairman of Finance and General Purposes Committee.

Chairman of Management Committee.

Member of Executive Committee.

Provincial Auditor, Transvaal.



Chairman of Management Committee.

President, Institute of Municipal Treasurers and Accountants (Inc. by Royal Charter).

Vice-Chairman of Management Committee.

Chairman ofFinance Committee.Vice-Chairman ofFinance Com

mittee.

Mayor.Chairman of Management Com

mittee.

t 23 ]


TownUITENHAGE

NameCoun. E. S. R ens C oun. J. S. L evy

Designation . Mayor.. Chairman of Finance and Gene


U MT A L I . . . . Coun. L. H. Morris C oun. A . S. Kemp

. Mayor.. Chairman ofFinance and Gene


VEREENIGING Coun. J. J. Swanepoel C oun. A . J. Botha

. Mayor.. Chairman of Management Com

mittee.

VIRGINIA Board Member H. Badenhorst Mayor.Board Member C. J. Geel . Chairman of Finance and Gene


WELKOM Coun. R. J. Rossouw . Coun. A . G. W allace

. Chairman ofFinance Committee.

. Member of Finance Committee.

WINDHOEK . Coun. J. L. L evinson . . Mayor.

Student M embers.Town

A L IW A L NORTH . . . .Name

K ruger, J . G. F.

BENONI C oetzee, J . A .Mearns, F. A .Nel, W . J.Roos, F. (Local Govt. Audit). S kinstad, L. A .

BETHAL V isser, G. J . J.

BLOEM FONTEIN............................................ L umley, W . D. Noeth, J . H. M.

BOKSBURG . Mare, J . J .

BRAKE AN . Du Plessis, J. A .

BROKEN H ILL Marshall, W . H.

BRONKHORSTSPRUIT Du Toit, B. J.

B U LA W A Y O • * * * * A tkinson, J . P. A ubert, R. J. Daniel, K. S impson, G. W . S.

CAPE TOW N A ndrews, E. W . L ayton, J . B. L omnitz, N. G. Smuts, L . E. T imoney, J.

CAPE DIVISIONAL C O U N C IL . J oubert, F. J.

[ 24 ]

L i s t o f M e m b e r s ( con tin u ed )

Town NameCARLETO N VILLE . De L ange, J. F.

JONKHEID, K.O livier, P.

COLENSO . . J ones, J.

CRA D O C K . . Mostert, D. T. B.

DURBAN . A pplewhite, N. E. A sh, H. R. Bullough, E. M. Bryce, J. R.K eats, L. R. R itson, C . J. S impson, R. A . W . W alker, C. G. W arren, D. R. F.

EDENVALE . . Mulder, R. T.

ESHOWE . C oetzee, H. T.

GERMISTON . . Muller, G. H. P. Nienaber, J. C . Prinsloo, G. M. J. V an den Berg, A . J.

GWELO . Brown, P. W .

HENNENMAN . V an Rooyen, D. R.

JOHANNESBURG . Billing, G. D.Bull, W . J.C O E T Z E E , R. L.De J ong, A .Denny, B. J.Diffenthal, D. A .Ehrich, G.Fenix, K. P.Ferreira, N. V.Flax.S.M. (Pension and Ptov. Funds). G ebhard, J.Hefer, J . C .Houet, G. W .J ansen, F. B.K nott, F. T.L awrence, C. E.L oubser, M. J.Louw, A . J.Lownie, J. R.Mains, J.Maisey, F. T. G. W .McC ormick, W . J.Mittel, M. L.Mollison, E. L.Munitich, G. J.O lwagen, G. T.

[ 2 5 ]


Town NameJ O H A N N E S B U R G ............................................ . O pperman, C. J.

( Conti.) Pawley, E. J. Postage, E. Potgieter, A . M. Rabe, C . E.Rabe, T. P.R abie, P. J. R oelofsz, K. G. Roux, F.Schmude, E. SCHOEMAN, H. B. SlEMERS, V . C . Slabbert, G. P. V an der Merwe, A. V an Zyl, M. E. V enter, J . A . M. V enter, S. J. W hittaker, F.

KEMPTON PA R K . . A rnold, O. V. G rove, J.

KIMBERLEY ............................................ . Swain, S. A .

KLERKSDORP . . . . . De Beer, F. E. K nox, C. Meintjes, E. T.

K L O O F ....................................................... . Pratt, W . N.

KROONSTAD . . Nieuwoudt, S. F.

KRUGERSDORP . . . . . C arter, A. V oysey, H. R.

MIDDELBURG, C .P . . . Hough, S. J. S.

M ILNERTON........................................... . Luyt, B.

N D O L A ....................................................... . Fretton, D. St. J.

PH A LA BO RW A . . . . . Fick, A. J.

PERLURBAN ARE AS . . CoETZEE, J. J.De J ager, P. P. J anse van V uuren, Nel, N. J.R ouse, R. P.Roux, B. G. E.V an Heerden, L. J. V enter, B. J . H.

PIETERMARITZBURG . A lborough, C. W . Tait, A . L.

P IN E T O W N ............................................ . Bell, A . A .

[ 26 ]


PORT ELIZABETH

PORT ELIZABETH DIVISIONAL C O U N C IL ............................................

Name. Ferreira, A . S. S.

W iggill, D. T. B.

. Barnard, J. M.

PRETORIA Blignaut, J . P. D iedericks, H. L. Engelbrecht, G. C.

PRETORIA NORTH .

QUEENSTOWN .

RANDFONTEIN .

ROODEPOORT . .

SALISBURY . . . .

SIMON’S TOW N .

SPRINGS . . . .

STANDERTON

STELLENBOSCH .

STELLENBOSCH DIVISIONAL C O U N C IL . . . .

STILFONTEIN

STRAND . . . .

UITENHAGE

VANDERBIJLPARK .

VIRGINIA . . . .

W A L V IS BAY

WELKOM . . . .

WINDHOEK . . . .

W ITBANK . . . .

. Breytenbach, W . H. J.

. Nicholls, H. C.

. Steyn, H.

. L iebenberg, H. L. H.

. L ang, F. G.Ratcliffe, R. M.

. L illey, J . H. F.

. Mathee, J.Murdoch, A . M.

. Naude, J . J.

. Basson, A . L.

. V an Zyl, S. A . S.

. Dakers, P.

. G roenewald, L. J . L.

. Botes, A . J.

. V an L oggerenberg, N. G.

. V an den Berg, D. E.V an W yk, W . P. V .

. V an den Berg, M. J.

. Swart, W . C.

. D reyer, J. P.Du Toit, J . F. L abuschagne, J. H.Smith, C . J.V an der Berg, D. C.

. Swarts, P. J.

. C ross, N. H.W ORCESTER

[ 2 7 ]

The Institute is not as a body responsible for, or necessarily in agreement with the views and opinions expressed by authors of papers.

First Day—Monday, 13th April, 1964.MORNING SESSION.

C I V I C W E L C O M E

D ie P resident : Goeiemóre, dames en here. Good morning, ladies and gentlemen. Ons vra nou vir Dominee J . L . D u Bruyn van die Gerefor' meerde Gemeente, Innesdal, om die verrigtinge met gebed te open.

The Rev. J . L . du Bruyn then offered up a prayer.

T he P resident : Ladies and gentlemen, it gives me very great pleasure to welcome you to the administrative capital o f the Republic.

Dit doen my genoë om almal hier welkom te heet en ek hoop dat al die verrigtinge u sal geniet.

Mr. Mayor, your Excellency the Administrator, I regret to say that my fluency in both languages is not yet what it should be, but I am quite sure that you will not construe it as an act o f discourtesy.

W e are now to have an opening address from his Worship the Mayor, and before I ask him to address you I think I should take this opportunity o f indicating to those o f us who come from outside the Transvaal what a remarkable man the present Mayor o f Pretoria is. I think you should know that he left school at a relatively early age in life and subsequently attained remarkable academic qualifications. I call your attention to the fact that he is a Bachelor o f Arts, he has a High Education Certificate, he has the Bachelor o f Education Degree and he is a Doctor o f Philosophy. Combined with those remarkable academic qualifications, I find that he is almost a criminolo^ gist. I find too, on delving more closely into his career, that he has been a champion wrestler in his time and it seems to me that there must be some sort o f affinity between wrestling and criminology. My real problem is to embrace both those particular requisites into some part or other o f the Institute’s professional courses. I would like to say this, too, that in making a study of the great men in the Transvaal, I am impressed with the fact that they are not necessarily born in the Transvaal, and I understand, Mr. Mayor, that you in fact were born in the Free State. I felt it was only right to bring that out in order that the Free State could claim its full credit.

N ow , ladies and gentlemen, I would ask the Mayor to open the Conference with a welcome to the delegates. Mr. Mayor.

[ 2 8 ]

C ouncillor P. J . van der W alt (Mayor o f Pretoria): Meneerdie President, sy Edele Meneer Odendaal, Ds. du Bruyn, dames en here, ek wil die President hartlik bedank vir die wyse waarop hy my aan u bekend gestel het. ’n R u k gelede het iemand my gevra o f ek ’n lyfwag by my het wanneer ek hierdie mooi ketting om die nek dra en toe het ek aan horn gesê: „ E k is ’n kriminoloog en nie ,krimineel’ nie.”

Meneer die President, dit is alleen by wyse van buitengewone uitsondering wat so om en by elke vyftien jaar plaasvind dat die administratiewe hoofstad horn daarop kan beroem dat hy nie net die room nie, maar daarbenewens die aansienlikste deel van ons land se finansiële breinkrag op munisipale gebied, in ons midde het. Die afgevaardigdes na hierdie vyf/emdertigste jaarkongres is immers almal baie nou aan een van ons land se belangrikste geldsektore verbonde en hulle is almal mense wat ’n inters belangrike invloed in die sfeer uitoefen. Derhalwe is dit vanoggend met ’n gevoel van respek, waar/ dering en dankbaarheid, Meneer die President, jeens u almal dat ek hier voor u staan om u namens die Stadsraad van Pretoria baie hartlik te ve/v welkom.

A llo w me, ladies and gentlemen, to pay tribute to the important role played by your Institute as the accepted body to advise on financial matters affecting local authorities. It occupies an honoured position in the Republic o f South A frica and, for that matter, even outside the Republic o f South Africa.

Your journal is well known and I wish to congratulate your editor on the very high standard maintained in this publication, and may I express the hope, ladies and gentlemen, that you will continue your good work. There/ fore, I am in full agreement with your editor’s plea, which I quote:

“ The time cannot be far distant when the Institute will need to combine its activities under one roof, and a secretariat enlarged to handle editorial duties plus the administrative functions involved, not only in the conduct o f Institute affairs, but in the conduct o f its examinations. Costs will increase, but will allow some o f the other aims o f the Institute to be fub filled, namely the provision o f an adequate library and reading rooms, and a central meeting place for members whenever they visit the headquarters city.

Members can be proud o f what they have today, but must strive to achieve the wider objectives, and the permanent secretariat and home for the Institute, necessitated by the growth o f local government in the Republic.”

Perhaps, ladies and gentlemen, this Conference will provide an opportunity to discuss these matters.

C ivic W elcome (continued)

[ 2 9 ]

Dames en here, vandag staan Pretoria op die drumpel van ’n baie belang/ rike ontwikkeling en dit volg op ’n besluit van sy Edele die Administrateur van Transvaal om ’ n groter Pretoria/gebied daar te stel met ’n oppervlakte van sowat 220 vierkante myl en met ’n geskatte blanke bevolking van onge/ veer 206,000. W at munisipale oppervlakte betref, Meneer die President, dames en here, sal Pretoria met sy 220 vierkante myl die grootste stad in die Republiek van Suid A frika wees en die tweede grootste stad in die wêreld, slegs Tokyo is ongeveer vy f viekante myl groter en ek hoop in elk geval dat na inlywing die Administrateur dit so goed sou dink om daardie ses ekstra vierkante myl by te voeg. Dames en here, hierdie ontwikkeling is, afgesien van die Stad se stigting in 1855 en sy proklamasie tot ’n setelplaas van die Republikeinse Regering in i860, vir my die belangrikste stap in Pretoria se geskiedenis. Die Administrateur se besluit is ’n direkte uitdaging en ’n geleentheid aan die Stadsraad van Pretoria om te bewys wat hy kan doen en hiervoor, dames en here, is daar visie nodig en sal daar ’n beeld van die suid afrikaanse stad van die toekoms ontwerp moet word.

It is for this reason, Mr. President, that I want to plead for some fundamen/ tal new thinking about the future o f urban centres. Obviously, an occasion like this Conference is not the opportune time for going into details. Perhaps I could summarise my plea in this way. Ladies and gentlemen, there has been considerable discussion and planning centred on, for instance, green belts, open lungs and ring roads and I am using these expressions both in a literal and a figurative sense — but, Mr. President, ladies and gentlemen, has the time not arrived when we should think o f an urban centre, be it village, town or city, with a green heart. In other words, should our con/ ception o f an urban centre not also be adjusted to cater not only for the material and revenue producing works, but also for cultural and spiritual affairs as a right and not as a concession.

V ir meer as ’n eeu het Pretoria die status van hoofstad en hierdie voorreg, dames en here, bring groot verpligtinge mee. Daar word baie van ’n hoofstad verwag. Nie net van die landgenote nie, maar 00k van die buiteland en om hierdie status uit te bou kan ek meld dat die stadsraad so pas ’n kunsmuseum voltooi het wat plus/minus vierhonderdduisend rand kos en waartoe die sentrale regering ’ n honderdduisend rand bygedra het. Die stadsraad is tans 00k besig om sy eie munisipale biblioteekdiens in die lewe te roep. ’n Aansienlike bedrag is aan die Transvaalse Raad vir Uitvoerende Kunste geskenk om die vestiging van hulle orkes in ons stadspoorte moontlik te maak.

Dames en here, die stadsraad is 00k bewus van die waarde van sy twee universiteite, van sy ander opvoedkundige/ en navorsingsinrigtings, die Suid/Afrikaanse Akademie vir Wetenskap en Kuns en andere, en 00k teenoor hierdie instellings staan die stadsraad simpatiek en wil hierdie insteh lings 00k as statussimbole, as lewensnoodsaaklikhede en as beskawings/

[ 3 0 ]


monumente help uitbou, maar daarvoor het ons dan ook geld nodig. Pretoria het baie meer geldelike hulp nodig as hy werkhk as administratiewe hoofstad van die Republiek en as die setel van die provinsie wil groei en bloei. Dames en here, die blaam vir die gebrek aan daadwerklike optrede insake hoofstedelike status lê nie geheel en al by die stadsraad nie. Ons moet altyd onthou dat vir die afgelope dertig jaar alle staatseiendomme van die betaling van eiendomsbelasting vrygestel is. Indien die sentrale regering, die spoorweë en die provinsie hierdie belasting sou betaal, sou dit op die huidige tydstip ’n bykomstige inkomste van R750,ooo.oo per jaar vir Pretoria beteken. Dit sou inderdaad n groot druppel in die emmer wees. Om aan sy plig as landsregermg teenoor sy hoofstede te voldoen, dames en here, sou ek graag wou sien dat die betrokke owerhede by wyse van uit/ sondering spesiale toekennmgs gelykstaande aan die eiendomsbelasting wat hulle sou betaal o f seifs meet aan beide die wetgewende^ en die administra-' tiewe hoofstede maak, al is dit dan ook met die spesifieke verstandhouding dat die bedrag wat op hierdie wyse aan plaaslike owerhede betaal word alleen vir statusdoeleindes gebruik mag word. My hoofpleidooi, dames en here, bly egter dat ons almal en veral u met u groot seggenskap oor munisi/ pale fondse altyd bereid moet wees om nie net vir die liggaam nie maar ook vir die siel van die stad te sorg.

Meneer die President, sy Edele Meneer Odendaal, dames en here, ek wens u n baie suksesvolle konferensie toe en hoop dat u verblyf in ons midde baie aangenaam en baie genotvol sal wees. Baie dankie, dames en here.

D ie P resident : Meneer die Burgemeester, on behalf o f the delegates present at this Conference, I would like to thank you very much indeed for those warm words o f welcome. I would like to thank you too, Mnr. die Burgemeester, for those complimentary references to the Institute and the work which it is performing in local government.

Your Worship, this is a noble city, and I believe that its resources and its abilities are such that it will respond without any difficulty whatsoever to the challenge which has been put to you by the Administrator in his latest proposals for the incorporation o f the neighbouring areas.

I would like to congratulate you too, your Worship, on that last portion of your speech, where, I think, you referred to the fact that, in addition to there being a body there must be a soul as well. Unfortunately I have the reputation, Your Worship, o f being absolutely soulless as a financial officer, but I am sure that my Council will not betray me in that respect. However,I do say most sincerely that I think your plea is most commendable, and while we pursue the material things, obviously, Sir, we must also have regard to the retention o f our souls.


Mr. Mayor, I thank you very much indeed for your welcome to this city.

Your Worship the Administrator, ladies and gentlemen, it gives me considerable pleasure to invite the Administrator o f the Transvaal to open the Conference. The Administrator is no stranger to the Institute, having performed this function in 196 1. In fact, the Institute has a particularly soft heart for the Administrator and we are very pleased to have him with us today.

N ow , here again, I think it only fair to point out that when I examined the background o f His Excellency, I found that here was another case of an outstanding man in the Transvaal who had not been born within the Transvaal. I notice, Your Excellency, if I may say so, that you were fortunate enough to be born in the Cape Province and then, Sir, had that excellent education in the Free State, which the Transvaal received the benefit of. A s I said earlier, speaking to His Worship, there is no doubt about it that the most able Administrators in the Transvaal apparently are born without the Transvaal.

It gives me great pleasure indeed now to ask His Excellency to open Conference. Your Excellency.

T he H onourable M r . F. H . O dendaal (Administrator o f the Transvaal): Meneer die President, Meneer die Burgemeester, dames en here, dit is vir my ’ n besondere aangename taak om die vyf-emdertigste jaarkongres van u instituut hier in Pretoria te open.

E k het alreeds tevore hierdie voorreg gehad naamlik toe ek u kongres in Johannesburg in 1961 amptelik ge^open het, maar nou kry ek die geleent/ heid om u kongres in die hoofstad van Transvaal en die administratiewe hoofstad van die Republiek te open. Mag ek nou net hier verwys na iets wat die burgemeester gesê het van die grootte van Pretoria, die nuwe Pretoria. Hy sê daar kom vyf o f ses vierkante myl kort om dit die grootste stad in die wêreld te maak. E k weet nie o f sy gegewens o f my gegewens verkeerd is nie, maar my gegewens is dat Tokyo maar 2 10 vierkante myl is. In ander woorde, volgens my gegewens is Pretoria die grootste stad in diewêreld.

Volgens inligting aan my verstrek is dit die derde konferensie van die instituut wat hier in Pretoria gehou word. Die eerste was in 1935. die tweede vyftien jaar later in 1950 en nou die derde een na ’n verdere verloop van veertien jaar. Daar is seker slegs ’n paar persone vandag hier teenwoordig wat in 1935 die konferensie bygewoon het en aan hulle w il ek sê, baie hartlik welkom. A an die ander kant is daar seker ’n hele aantal wat die konferensie in 1950 bygewoon het en hulle sal oplet hoe die aangesig van Pretoria in hierdie kort tyd verander het. Die ontwikkeling wat hier in Pretoria plaasgevind het was miskien vinniger en ingrypender as in die meeste stede, maar die fenomenale groei vanaf 1950 toe u laas hier vergader


het, tot nou is dwarsdeur die land waarneembaar. Doemprofete het telke^ male gedurende die afgelope jare beweer dat die land op die afgrond van ’n ekonomiese ineenstorting is, maar ten spyte van hulle het die land se ekonomie gegroei en is die Republiek tans die welvarendste land in A frika, en nie net in A frika nie, maar miskien van die wêreld, en met die hoogste en vinnigste groeiende per kapita inkomste. Ek het nou die dag statistieke gesien. E k sien die enigste land wat met ons kan vergelyk is Japan. Dit is seker interessant om deur middel van syfers die reusegroei van die ekonomie van die Republiek in oënskou te neem. V ir die doel wil ek sekere statistieke van die dertig grootste stede in die land gee vir die jare 1935, 1950 en 1963, naamlik die twee vorige konferensiejare te Pretoria en verlede jaar soos dit opgeteken is in die Munisipale Jaarboek. A s ons na die bevolkingssyfers kyk, vind ons dat daar in 1935 800,000 blankes en 900,000 nie^blankes, dis ’n totaal van 1,700,000 inwoners, in die 30 stede was. In 1950 het die syfers aangegroei tot 1,300,000 blankes en 1,900,000 nie^blankes, n totaal van 3,200,000. Verlede jaar, in 1963, was die getalle 1,700,000 blank, 3,000,000 nie^blank met ’n groot totaal van 4,700,000. Die blanke bevolk/ ing in die betrokke dertig stede het dus met 1 1 2 persent in die 28 jaar vermeerder en die nie^blankes met 300 persent.

Nou wat belasbare waardes betref, is die groei nog vinniger. In 1935 was die belasbare grondwaarde Ri43,ooo,ooo, verbeterings R 3 16,000,000, ’n totaal van R459,ooo,ooo. By 1950 het die syfers aangegroei tot R44i,ooo,ooo vir grond, R 8 56,000,000 vir verbeterings en ’n totaal van R 1,297,000,000. Die syfers vir 19 6 3 is soos volg: grond R i , 283,000,000, verbeterings R 2 ,524,000,000 met ’n totaal van R 3 ,807,000,000. Die grond wat in 1963 gewaardeer is, is grootliks dieselfde grond wat in 1935 gewaardeer was en toon die styging in geldwaardes aan, gedeeltelik as gevolg van inflasie maar hoofsaaklik as gevolg van die ekonomiese ontwikkelling van die stede, aangesien grondwaardes styg na gelang die stede groei.

A an die ander kant is die styging in die waarde van die verbeterings toe te skrywe aan nuwe konstruksie. V an 1935 tot 1950 was die styging R 5 4 ° , ooo,ooo, maar in die dertien jaar van 1950 tot 1963 was dit nie minder as R i , 668,000,000 nie. Dit gee ’n gemiddelde van R i i 8,ooo,ooo per jaar. Dit is voorwaar ’n reuse ontwikkellingstempo wat die doemprofete verdoem tot verdoemenis.

O m die prentjie egter te voltooi, moet ek ook die netto leningskuld van die betrokke plaaslike owerhede meedeel en die syfers is soos volg: In 1935 was dit R 7 4 ,ooo,ooo, in i 95o R 2 i 9 ,ooo,oooenin 1963 was dit R 5 37,000,000 en omgewerk tot ’n per kapita bedrag vir die blanke bevolking was dit R96.00 in 1935, R 167 .0 0 in 1950 en R 32 1.0 0 in 1963. Hierdie groter kapitaaluitgawes was genoodsaak om tred te hou met die ontwikkelling van die stede. Hierdie syfers is nog altyd van die dertig stede. W at per slot


[ 3 3 ]

van sake is ’n huis o f ’n fabriek wat daar alleen in die veld staan werklik werd? O m dit nuttig en bruikbaar te maak is dit nodig om dienste soos water, elektrisiteit, riolering, paaie, brue, stormwaterriole, openbare vervoer en soortgelyke noodsaaklike dienste te verskaf, en dit is dus glad nie ver/ basend dat die skuldlas oor die loop van jare gestyg het nie. Volgens alle aanduidings is die Republiek op die drumpel van ’n ekonomiese uitbreiding soos daar nog nie tevore in Suid A frika plaasgevind het nie. Ons hoor gedurig van nuwe nywerhede wat opgerig word, o f reuseskemas wat aange/ pak word soos die Oranjerivierskema, die Ontwikkellingskema vir Suid/ W es/Afrika, die ontwikkelling van die Transkei, die uitbreiding van Yskor, Eskom en nog talle meer. Hierdie uitbreidings sal veroorsaak dat baie stede en dorpe nuwe en addisionele dienste sal moet verskaf om tred te hou met die vinnige uitbreiding. Hierdie uitbreiding sal letterlik miljoene kos en deur die Minister van Finansies is plaaslike owerhede versoek om te konsentreer op noodsaaklikhede en om minder noodsaaklike uitbreidings ’n bietjie uit te stel. Nietemin sal daar nog groot kapitale bydrae bestee moet word in die publieke sektor om die nodige dienste te kan gee. In die openingswoorde by die konferensie in Johannesburg het ek tesouriers meegedeel dat hulle funksie onder die bestuurskomiteestelsel effe verskuiwe het en dat hulle onder die nuwe stelsel meer tyd behoort te vind om doeltreffende administratiewe en finansiële beheer in te stel en dat hulle meer sal kan konsentreer op die probleme van die finansiëring van beide die lopende en die kapitaaluitgawes. ’n Goeie tesourier is nie noodwendig ’ n persoon wat altyd nee sê nie wanneer uitgawes gemaak moet word, want tensy ’n stad bereid is om geld te bestee om sy dienste en fasiliteite te verbeter, kan hy nie verwag om nywerhede o f ander ekonomiese bedrywe na horn toe te lok nie. A an die ander kant is dit nietemin die stadstesourier se plig as permanente beampte om te sorg dat sy stad nie in finansiële moeilikhede beland nie. Dis is ’n baie belangrike aangeleentheid en was nog altyd belangrik, soseer dat die skrif seifs daarvan melding maak en wel in Lukas 14 verse 28 tot 30 wat as volg lui:

„Want wie van julle wat ’n toring wil bou gaan nie eers sit en die koste bereken of hy die middels het om dit uit te voer nie, sodat as hy die fondament gelê het en nie in staat is om dit te voltooi nie, almal wat dit sien nie miskien met horn sal spot nie en sê: Hierdie man het begin om te bou en kan nie klaarkry nie.”

On the other hand, Mr. President, it is also essential that the local authority should not only look to the mundane requirements of its citizens, but it must also be fully aware of their spiritual and artistic desires. I am pleased to say that most local authorities do use some of the income they have to provide their citizens with parks, playgrounds and swimming baths. W ith the assistance of the various provincial administrations, most local authorities have also developed an adequate library service, and now in the Transvaal, with the help of the Province, we are also trying to encourage and make available such cultural activities as music, drama, ballet and opera. To make


[ 3 4 ]

this possible, I have called upon the local authorities in the Transvaal to contribute a small proportion o f their income to a central pool, so that an organisation can be built up which will make it possible to provide these cultural amenities, not only in the cities and large towns, but also on the platteland. I wish to express my appreciation o f the contributions which so many o f even the smaller towns have made for this purpose.

I believe the Conference has been invited to attend a performance o f this organisation called the Performing Arts Council, Transvaal, on Wednesday evening and I am sure you will enjoy the play entitled “ Die Dubbelbed” .

Having addressed the treasurers on their duty towards their towns, I would also like to address a few words to those councillors present. I think most o f you have been elected on a ward basis and you must naturally attend to the requirements o f your ward on a priority basis. It is, however, often necessary to be less parochial and to look upon the town or city as a homo/ geneous unit. Amenities should not be placed in wards but in such a position that they will serve the greatest number o f citizens. Unfortunately, very often one finds that a particular amenity is sited in the wrong locality, and when enquiry is made as to the reason therefor it appears that it is due to the strong desire o f a councillor who wanted the amenity at that particular spot. I suppose he is looking for the future to get some votes.

There is another matter which I think should be mentioned and that concerns the advice given, not only by the Treasurer but by all the senior officials. These officials are in permanent employ o f the local authority because o f their knowledge and ability in their particular fields. They are, in ordinary language, the experts appointed by the Council to advise it. In a democratic set/up, such as local authorities are in South A frica, councillors come and go and it is the officials who must act as the co/ ordinating factor. One must assume that they have made a thorough study o f the subject matter, that they are experts in their field, and that their recommendations are based on these two premises. That being the case, councillors should take very good heed o f the advice they receive, but naturally, being the elected representatives who make the final decision, the responsibility for that decision is theirs. My advice, therefore, is never lightly dismiss the recommendations you receive from your senior officials unless you have very good reason to do so.

I would also like to touch on the privileged position in which local authorities find themselves in the collection o f moneys due to them. This privileged position has been accorded to them in order to safeguard the rights o f the ratepayers inter se as the failure on the part o f one ratepayer or consumer to pay what is due by him will increase the burden upon the remainder. For that reason, Mr. President, you are entitled to disconnect


[ 3 5 ]

the electricity and water supply for non-payment o f the amount due and, on top o f this, you are entitled to demand a deposit. For assessment rates and sanitary services, you have prior rights under certain circumstances, even against a first bondholder. The members o f your Institute have a duty in this regard, not only to the councillors, but also to the ratepayers.

I have already alluded to the Management Committee, which, as you know, was introduced in the Transvaal in 19 6 1. W hen this innovation was first mooted, it was strongly opposed and even ridiculed in many quarters, but I am pleased to say that it is gradually becoming more and more acceptable. Since its introduction here, it has also been introduced in South-West A frica, and interest is being shown in the experiment not only by the other provinces but also by our neighbours. In some towns the system is working extremely well, but in others there are, unfortunately, still a number o f dissatisfied councillors and officials. I f I may borrow a term used daily in the computer world, I would like to remind you that the objectors are practically all first generation councillors and officials who have not yet got used to the new set-up; as the second generation comes forward and accepts each concept with the advantages which it provides, I am sure that we will find that the aim and object that the Transvaal Provincial A dm in istration had in mind will be fully achieved.

A n d now, Mr. President, I would also like to welcome you personally to this Conference. A s a young man who was born and educated in the Republic — I do not know whether it is outside the Transvaal or not — you emigrated to Rhodesia, and, as the result o f your natural ability and hard work, you rose to the top o f your profession and now hold the position o f City Treasurer o f the capital city o f your country. W hat is more, your colleagues have elected you to be President o f a mainly South African Institute, and this is the first occasion on which this honour has fallen upon someone from outside the Republic. The fact that you can hold this important post in this Institute symbolises the close relations between our countries. There are many bonds which tie us together, bonds o f kinship, o f language, o f business connections, o f customs, o f religion, and indeed our ways o f life are very similar, and both our countries have the distinction o f being envied and, therefore, hated by the other nations o f Africa.

En nou, Meneer die President, wens ek u en al u afgevaardigdes by hierdie vyf-en-dertigste jaarkongres van die Instituut van Munisipale Tesou- riers en Rekenmeesters ’n gelukkige, interessante en ’ n leersame samekoms toe en dis nou vir my ’n groot eer om hierdie kongres as amptelik ge-open te verklaar. Dankie.

D ie P resident : E k sal nou raadslid L . J . van den Berg van Pretoria, die President van die Verenigde Munisipale Bestuur vra om ’n mosie van dank aan sy Edele te bied.


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R aadslid L . J . van den Berg (President van die Verenigde Munisipale Bestuur, Pretoria): Meneer die President, sy Edele, Mn. Odendaal, sy Edelagbare Meneer die Burgemeester van Pretoria, dames en here, ons administrateur hier in die Transvaal is nie net ’ n baie bekwame administrateur nie, maar dié van u wat horn ken weet dat hy ’n geliefde persoon by ons is. Ek dink vanmóre was weer ’n voorbeeld daarvan. H y het met u baie belangrike sake bespreek, hy het vir u baie belangrike statistieke verskaf en hy het dit op so ’n manier gedoen dat ons almal sy openingsrede geniet het. Die groei van die land het hy vir ons uitgebeeld veral, natuurlik, met betrekking tot die dertig vernaamste stede en dorpe, en die optimisme in verband met die toekoms daarvan. Ons moet in hierdie dae optimisties wees, nie net wat ons stede en dorpe betref nie, maar ook wat Suidelike A frika betref.

U Edele, wat u mooi houding betref in verband met ontspanning, u het verwys na parke, ontspanningsfasiliteite in ons stede en ook na die belangrikheid van die geestelike ontwikkelling van ons mense, sê ons baie dankie — ons waardeer dit. A s plaaslike owerhede waardeer ons so ’n houding van hoër gesag baie. Die Verenigde Munisipale Hoofbestuur is gedurig maar besig om aandag te skenk aan ons provinsiale verenigings en afsonderlike plaaslike owerhede en so ’n bietjie aanmoediging is vir ons baie goed.

Met hierdie paar woorde, u Edele, wil ek vir u namens die Instituut en namens die Plaaslike Besture in Suidelike A frika baie, baie dankie sê vir die mooi wyse waarop u hierdie Kongres ge-open het. Baie dankie, u Edele.

Mr. President, i f you will allow me just a few words on behalf o f the United Municipal Executive, I just want to assure your Conference here o f the appreciation o f local government in Southern A frica for the work you are doing all the time.

The United Municipal Executive calls on the Institute o f Treasurers many times during each year to draft Memoranda and do all kinds o f jobs, and we have always found them very co-operative. I do want to assure the Institute o f our very hearty appreciation for this co-operation.

Thank you, Mr. President, and may I also, on behalf o f the United Municipal Executive, wish you a very successful conference and a pleasant stay in Pretoria for the few days that you will be here.

En as n Pretorianer, Meneer die President, wil ek graag aansluit by wat ons Burgemeester hier gesê het. U is baie welkom in Pretoria en ons vertrou dat u die paar dae hier baie sal geniet. Baie dankie.

D ie P resident : Baie dankie, raadslid van den Berg. E k vra nou die Burgemeester van Springs, raadslid C . J . Bornman, om die mosie van dank te sekondeer. Burgemeester Bornman asseblief.


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R aadslid C . J . Bornman (Burgemeester, Springs): Meneer die Presi/ dent, sy Edele die Administrateur, Meneer die Burgemeester, dames en here, dit is vir my ’n besondere voorreg om die mosie van dank aan sy Edele te sekondeer. E k wil sy Edele met sy toespraak gelukwens en horn daarvoor bedank.

Ons besef almal dat sy Edele ’n baie besige man is wat benewens sy gewone taak as Administrateur van Transvaal, nog sulke take onderneem soos byvoorbeeld voorsitter van ’n kommissie wat ’n baie voortreflike ver/ slag betreffende Suid/W es/Afrika gelewer het. Ons sal nog baie daarvan in die toekoms hoor. Daar is ook sulke take soos om skoonheidswedstryde by te woon en kongresse, soos hierdie vandag, te open. O m daardie rede waardeer ons al hoe meer die moeite wat sy Edele gedoen het om hier te wees en bewys te lewer dat hy belang stel in die sake van die plaaslike besture.

Daar was ’n tydperk, nie so lank gelede nie, toe die provinsiale owerhede heelwat gekritiseer is omdat hulle so min belang in die plaaslike besture getoon het. Vandag is dit egter anders, te danke hoofsaaklik aan mense soos sy Edele wat deelgeneem het aan die skepping van vername inrigtings en afdelings wat plaaslike owerhede in die Transvaal help met hulle pro/ bleme. Ek verwys veral na die Adviesraad.

E k is seker dat ek namens al die afgevaardigdes praat wanneer ek sê dat ons dit veral op prys stel dat sy Edele altyd aandag aan finansiële sake bestee. Sy toespraak hier vandag dui dit baie duidelik aan. Afgevaardigdes besef dalk nie dat volgens sy Edele, die Administrateur, se reeling geen Raad ’n aanbeveling vir leningsbevoegdhede mag oorweeg sonder ’n ver/ slag van die stadstesourier nie, en dat sy Edele ’n aansoek vir leningsbevoegd/ hede nie sal oorweeg nie, tensy die Tesourier se verslag die aansoek vergesel nie. Daar bestaan geen duideliker bewys van die belangrikheid wat sy Edele aan finansiële beheer heg nie.

Die nuwe stelsel van plaaslike bestuur in Transvaal is nou al drie jaar oud en daar bestaan algemene tevredenheid met die stelsel. E k wil sy Edele, die Administrateur, en sy Adviesraad hartlik bedank vir die baie goeie dienste wat hulle lewer om die plaaslike owerhede te help om hulle pro/ bleme op te los. Die toepassing van die stelsel verskil van dorp tot dorp. Ons in Springs is besig met nog ’n verdere eksperiment binne die raamwerk van die nuwe stelsel, naamlik die skepping van twee poste van H oof Amptenaar, die een ’n finansiële en die ander ’n tegniese deskundige, wat die H oof Uitvoerende Beampte, d.w.s. die Stadsklerk, sal help om die beleid van die bestuurskomitee en die /raad volgens moderne bestuurs/ beginsels uit te voer.

U Edele, ons is regtig hoog ge/eerd om u hier by ons te he. Dankie.


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T he P resident : Your Excellency, may I add my personal thanks to those o f the two speakers. W e have enjoyed your presence here greatly today and we look forward to renewing contact with yourself. Thank you, Your Excellency.

Ladies and gentlemen, the last occasion on which a conference was held in Pretoria was in 1950, but that was not the first time. In fact, the first conference was held in 1935» and I am delighted to introduce to you today on the right hand side o f the platform a gentleman by the name o f Mr. Ivan Solomon, who was the Mayor o f Pretoria on that occasion. I think we are very fortunate in having him with us today, and, i f I may say so, such longevity speaks well for the stimulating effect upon the human frame of services to the community.

I would also like to extend a very sincere welcome to those delegates representing Government and A udit Departments and other Institutions, including the Universities. Many o f them are old friends and we are always delighted to see them again as well as to make the acquaintance o f those to whom the Institute’s Conference is a new experience.

W e are particularly fortunate in having with us today two guests who are certainly seasoned campaigners when it comes to conferences. I refer to Mr. G . C . Jones, who is the President o f the Institute in the United King/ dom and the Borough Treasurer o f Reading, and Mr. L . F. Cheyney, who is a retired Secretary o f the Institute in the United Kingdom and who has visited us in A frica before.

In his New Year’s message to the Institute in the United Kingdom , the President, Mr. Jones, vowed and declared that when he visited A frica he intended to make contact with every Fellow, Associate and Student o f the Institute. It has been quite an undertaking. He started in Cairo and appa/ rently so far he has visited nine centres and has six more to go to. I may add that what has made his task even more difficult is not only the determina/ tion to contact all these Fellows, Associates and Students, but seemingly an equal determination to enjoy just about every golf course associated with the particular centre.

There are strong ties between the two Institutes, as we all well know, and many members o f the United Kingdom Institute are now serving in South A frica, Southern Rhodesia and Northern Rhodesia. W e have always found our friends to be o f considerable assistance to us in our own problems by virtue o f their own rich experience.

I will now invite Mr. Jones to address Conference.

M r . G . C . J ones, f .i .m .t .a ., f .c .a . (Borough Treasurer o f Reading, President o f the Institute o f Municipal Treasurers and Accountants (Incor/


[ 3 9 ]

porated by Royal Charter), United K ingdom ): Mr. President, thank you indeed for your very kindly welcome here and also in Salisbury.

From the Institute’s Council in London I bring to you all very hearty greetings, and indeed from all our members throughout the British Common/ wealth. W e value this tie with our South African colleagues fully and we look forward to a continued happy relationship between us, both technically and socially, in the many years ahead.

May I give you now my personal thanks to your President, your Council and your members for making me, during my year o f office, an Honorary Member o f the South African Institute, and so I am now able to say with you, Mr. President, our Institute. May I also thank you, Mr. President, and Mrs. Martin personally and your colleagues on the Council for their very generous hospitality and warm welcome, not only again in Pretoria, but also in Salisbury. This has already presented to me a very happy reunion with Mr. and Mrs. Jack Cowden, who visited Britain fairly recently, and has also provided a great opportunity for my wife and I to make many new friends. May I say that I hope every member o f your Institute, Mr. President, whenever in Great Britain, will visit us at our Headquarters in Westminster, and i f they are in England in June would they kindly honour us by their presence at our A nnual Conference.

Our Institutes must continue in close friendship, and I hope that many Institutes o f the same name will be formed throughout the world in the years ahead.

N ow I think it only right, Mr. President, as you have kindly allotted me fifteen minutes, for me to bring you news o f your sister Institute; this is the phrase used, although I think brother Institute is more appropriate at present.

In the United Kingdom , our membership o f fully qualified members is now almost four thousand, and, together with a student membership o f over two thousand, our total membership is six thousand. W e are happily continuing, as indeed you are, to get increased recognition from our country, and more recently we are very proud indeed to have received from Her Majesty our Royal Charter, which, amongst other things, made me one o f her trusty and well beloved.

W e are now accepted fully as the Institute o f public finance, administra/ tion and accountants in the Commonwealth. There are increasing numbers o f appointments o f our members serving in Government Departments. I mention that especially because I think, certainly in the Commonwealth, we have welcomed that development in particular, so that they always talk the same language. Our membership has also increased on public boards and local authorities in most countries in the Commonwealth. One o f our very important developments is in research and statistics, and we are still


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proud that for over a quarter o f a century the only body devoted to research, in British local government anyhow, has been the Research Committee o f this Institute.

Furthermore, our statistics which we publish annually — and, o f course, we are aided by having a common financial year — are now well received and used not only by government departments but by most o f the British universities, and, o f course, by all o f us in local government, to measure the efficiency, not only o f ourselves as officials, but also o f our councils and their decisions. W e have decided to complete this coverage o f published statistics by extending it to all services and undertakings.

The next development I wish to mention is that o f specialist and consultant panels. W e are now actively engaged in completing the setting up o f panels o f consultants on many aspects o f local government and central government finance and administration. This indeed is an age o f specialisation and we have found the need to make, from time to time, independent pronouncements and to give evidence also to Government committees and to other bodies at comparatively short notice, as well as indeed, that we, as practical treasurers throughout the Commonwealth, find the need to have available very quickly specialist consultants and their organisations.I think that this is a development which will in the years ahead be o f special interest to you in South Africa.

Another side o f our Institute developments which I know interests you very much indeed is, o f course, recruitment and training, and we feel that we have special problems in these two fields owing to the varying nature o f countries throughout the British Commonwealth. A ll progressive bodies have to be alert on these two subjects and I think we have taken a very brave step in appointing an outside independent investigator to tell us what he considers is the best form o f training for treasurers in the future. He is receiving actively for this current eight months information and evidence from Branches and Associate Sections throughout the Commonwealth and also from many quarters individually. I am sure, Mr. President, the report, when issued — and, like all good research work, o f course, it must be published just as it is presented — will interest you very much. Lest you should think that we are trying to effect this independent report from within too much, it is under the independent control o f the Vice-Chancellor o f a British University.

Our next big development is, o f course, our A nnual Conference; like you we also have a Conference once a year. W e choose June for this gathering because that month has the best possible chance, i f there is such a thing, o f good weather in the United Kingdom . This year we are very proud that, besides the Chancellor o f the Exchequer and Mr. Buchanan, o f the famous


[41]

Buchanan Road Reports, we have one o f our own members preparing a paper on the current changes in functions and boundaries o f British local government, dealing in particular, o f course, with the Greater London developments. My own Presidential Address is devoted to a hobby horse o f mine, the independence of the Treasurer o f Public Funds. I was very hopeful that you, Mr. President, and Mrs. Martin would have been able to have come to our Conference this year. I regret that now you find that you are not able to do that, so may I officially and publicly extend to you and Mrs. Martin a very warm welcome to our Conference next year, which will be at Eastbourne in June. I can assure you o f a very warm welcome, o f renewing many o f your friendships and making many new ones. I do very sincerely hope that you and your Council will find the way for you to pay us that visit. In inviting all your members to our Conference at any time, may I also make a specific point o f including any Chairmen o f Finance Committees who are present. A n y time you are in our country, we can assure you o f a warm welcome. Our Conference is o f approximately eighteen hundred in size, but I think you can rely on the fact that almost half o f them are Chairmen o f Finance Committees, so that you would be dealing with your kith and kin in this great profession.

Generally, may I conclude with some personal remarks, because I think that the importance o f our calling today has never been greater. The need to safeguard public funds by independent advice and control grows as public funds grow. The history o f British local government well over seven hundred years has stressed the need to recognise that power corrupts and absolute power corrupts absolutely. By the integrity o f our profession and the high standards o f our techniques, the public know that their funds are safe' guarded and treasured. The independence o f the office o f Treasurer is recognised in the British Commonwealth by statute and by case law, and we are in this way no mere servants o f the council but also trustees o f public funds. I believe, Sir, that the members o f your Institute and the members o f my Institute carry out this very high professional integrity and so maintain our profession on the highest possible line; but I also believe that, in our own way as treasurers, we need to record and display the creed, the standards and the philosophy by which we serve and by which we live, and I believe that creed could be summed up as follows. W e as Treasurers believe that truth and justice are fundamental to an enduring social order. W e also believe that thrift is essential to welbordered living, and we believe that economy is a prime requisite o f a sound financial structure, whether it be in government, in business or personal affairs. W e who serve must be friendly to all but never too friendly to any. W e must act reasonably and responsibly at all times, and, whilst we are privileged to help government to serve the people, we must devote our full time to that service. W e recognise that every right implies a responsibility, every opportunity an obligation

[ 4 2 ]


and every possession a duty. W e respect the rights o f each individual and we respect the right o f each individual to our services. W e believe there is no sound government without sound finance, but we also realise that there is no sound finance without a sound Government. These are some o f the precepts by which we treasurers live. They enable us to apply in our work the happy independence o f the treasurer o f public funds. Thank you.

T he P resident : Mr. Jones, on behalf o f the South African Institute, I would like to thank you very much indeed for your kind remarks and your inspiring references. I assure you that we shall do our utmost to ensure that the bonds which already exist between the two Institutes shall be strengthened still more. Thank you very much, Mr. Jones.

After the tea interval, I shall deal with the Presidential Address.


PRESIDENTIAL ADDRESST he P resident : Ladies and gentlemen, when I was privileged to

present a paper to Conference last year, I said that I would speak to the paper and not read it. O n that occasion too, I said that i f my remarks were found to bear any resemblance to what I had written in my paper, it would be a remarkable coincidence. The same circumstances apply today.

Trepidation and apprehension have been my constant companions in the course o f preparing this Address. My trepidation arises from the fact that I possess a queer, quixotic determination to try and steal away from — shall we say — the traditional Presidential Address. My apprehension stems from the fact that, because I am outside the boundaries o f the Republic, I cannot claim to be fully knowledgeable o f what is happening in this part o f the world.

However, I have prepared what would best be described as several canvases by a pretty poor artist. I find that altogether I prepared nine cam vases, ranging from development programmes, and in fact including a chapter on cannibalism, and all in all I realised that, i f I had to paint for my living, particularly canvases o f this calibre, I would starve miserably. I have decided, in the circumstances, certainly not to put two or three o f these canvases on show today, and we will pass them over quietly. I am not yet in the category o f a Pierneef or a Theunis de Jongh.

PRESIDENTIAL ADDRESSI N T R O D U C T I O N

i. Trepidation and apprehension have been my constant companions in the preparation o f this address. Residence outside South A frica precludes a full appreciation o f all the problems besetting local government in the

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Republic — hence the apprehension. My trepidation has a different origin. It stems from a quixotic determination to deviate from the traditional pattern o f Presidential addresses in that, lacking the palette and oils to paint a full portrait o f local government, I must needs content myself with several small sketches which may be o f topical interest to Conference.

D E V E L O P M E N T P R O G R A M M E S

2. It is conjecturable whether local government is sufficiently aware o f the acute necessity to plan forward in capital expenditures. A ll too frequently the absence o f a long-term development programme creates an atmosphere o f instability, the evils o f which manifest themselves most patently when the capital budget is under annual consideration. This hand-to-mouth existence provides a real temptation to advocate last-minute variations in the priority rating o f capital projects so that forward planning tends to be inhibited as a consequence. A n even more distressing handicap, in the absence o f an approved cycle o f capital spending, is the inability o f the finance officer to predict future rating trends and measure the authority’ s consequential ability to service loan and maintenance burdens, particularly in those fields where outlay is o f an unremunerative character.

3. Conference will be mindful that the Plowden Committee, appointed in 196 1, reported on the problem o f controlling public expenditure in the United Kingdom . The Committee advocated the need to conduct periodic advance surveys over the whole area o f public expenditure; due regard would be had to the extent o f available finance in the forward cycle, this determining the size o f the future budget. Thereafter, the programme would be adhered to as far as possible, making for economic stability in the long term and eliminating the possibility o f last-minute variations. The C om mittee placed considerable emphasis, too, on the need for collective responsibility in the functions o f planning and spending.

4. Com ing nearer home, it is pleasing to be able to concede that the Government o f the Republic needs no admonishment in this respect; however, at the level o f local government, the question remains. A re local authorities as a body sufficiently alive to the merits o f long-term planning in the sphere o f capital expenditure? Is it not the case that there is a tendency to excuse the performance o f this duty on the ground that there is little point in conducting an advance survey when capital funds are in short supply and even more so when their future availability is unknown? Surely the true answer is that the need for such planning exists irrespective o f the extent o f available finance, but its scarcity serves only to make the task doubly imperative.

Presidential A ddress (continued)

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P residential A ddress (con tin u ed )

P R O F E S S I O N A L T U IT IO N

5. In the 1961 examinations o f our Institute, the percentage o f passes at all levels was 4 1.5 per cent; in the 1962 examinations, the figure was 43.71 per cent. In the United Kingdom the percentage achieved in 1962 was 39 per cent and, in 1963, 38 per cent. W hen these results are allied with the relative paucity o f professionally-qualified finance officers, the portents are not a little alarming. Linked indissolubly with this problem is the complex o f recruitment and training within the profession itself.

6 . I f the profession o f municipal treasurer is to retain its just status, and i f the financial welfare o f local authorities is to prosper, then steps must be instituted immediately to provide recruits, and unqualified officers already serving in the lower ranks, with greater facilities for study. Unfortunately, the geography o f South A frica and, in even greater degree, o f the Rhodesias! militates against the introduction o f the system known as day-release courses which is proving o f considerable benefit to overseas students. Nevertheless, in the bigger cities where universities are already domiciled, it should be feasible to arrange for this facility to be developed under the aegis o f a university or technical college. Reflection will probably suggest that South African students would best be catered for by attendance at block-release courses or summer schools. This system offers the distinct advantage o f allowing students from the smaller centres to take up temporary residence at the university itself, the timing o f the courses being arranged to coincide with the normal university vacations. However, such arrangements will have a minor appeal unless and until local authorities themselves display a greater readiness to co-operate in this direction. Hitherto, permission to attend special classes during normal hours o f work has not always been granted too readily — the opposite approach is required — local government must appreciate that i f its science is to be preserved and, indeed, to be improved upon, then it behoves it to ensure that its employees are given ample time for the pursuit o f professional qualifications. W ithin the other professions employed by local government, it has long been the practice to allow aspirant members the privilege o f attending university and technical college courses in the pursuit o f their qualifications. It means, too, that local authorities must willingly authorise establishments in excess o f normal so that the periodic absence o f trainee officers will not disrupt or hinder the output o f the treasury.

7. So much for the positive co-operation o f the local authority! N ow , what o f the Institute itself? O n the certain assumption that the Institute will have no truck with any proposal that might lower its examination standards or reduce the educational qualifications requisite for entry into treasury service and subsequent pursuit o f the Institute’s diploma, it seems vital to ask the universities o f South A frica and Rhodesia to provide tuition,

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not only in the science oflocal government itself but also for the professional examinations o f the Institute. Whilst I pay handsome tribute to the corre^ spondence colleges which have been the chief source o f tuition for the examL nations o f the Institute, I nevertheless feel that the Institute’s diploma must approach the status o f a university degree. Is there not a real dearth o f teachers, outside the perimeter o f the universities, qualified in all respects to tutor on subjects in which municipal trainees must acquire proficiency? W hat could be more logical or economical, therefore, than to make the fullest use o f university tutors and professors on their own stamping grounds?

8. That there is no room for complacency in this quarter is all too evident and the Institute itself, fully conscious o f the threat to its professional welfare, should take steps to persuade employers to provide free time; it should then enlist the support o f the dons in the very real need to provide tuition, limited initially to block/release courses and vacational seminars but subsequently incorporated into degree courses in which the curriculum would place considerable emphasis on the techniques o f financial management.

9. I f I may quote from the August editorial o (Local Government Finance:“Should not the distant prospect then be the setting up of a local government staff college, not

only for accountants and finance staffs, but for the other professional officers, too. Here those likely to reach the top of their profession would come together to be taught higher administration, to take a long, cool look at their work, and to understand the problems which beset their colleagues in other spheres. Part of the time would be devoted to considerations of the individual professions, too, but, for this purpose, they would hive off into separate syndicates. None of this is new, of course, and nobody seems to dissent from the need for a college — but, then, nobody seems to do anything about establishing one, either. Let not the distant prospect be too remote, lest it vanish from sight, and, with it, the hope of replenishing our rapidly diminishing stock of accountants in the public sector.”

10. South A frica is on the threshold o f an astonishing expansion, the extent o f which defies prediction. This development demands the immediate services o f many more units o f local government, units which must be led by qualified administrators i f maximum efficiency and attendant civic economy are to be achieved forthwith. The challenge is to provide the means whereby this demand can be met timeously and I am hopeful that the Institute will not be found wanting in the fulfilment o f this important task which, i f left unattended, could well sap the very roots oflocal govern^ ment finance.

T H E R O L E O F T R E A S U R E R" The time is out o f jo in t; O cursed spite,

That ever I was born to set it right.”H a m l e t 11 *

1 1 . U sing the most revealing and sensitive camera, which is our common possession, the mind, some o f us must often chuckle when we turn back the pages o f our career/albums. W hy chuckle? Because not a few when first elevated to the chair o f chief financial officer, must well

[ 4 6 ]


remember that mental resolution to put all things right overnight by the simple and so elementary process o f ruthless financial control. Since then, influenced by the sweet tolerance o f time, we have realised that that early appreciation o f our responsibilities to our employers was dangerously narrow in its perception and application. Subsequent experience and contact in the rough school o f life have taught us progressively, albeit painfully, that the correct point o f view attaching to every problem is not necessarily that voiced by the treasurer but may, on occasion, be the view expressed by a professional colleague! W hich brings me to the nub o f the plea that follows in the next paragraph.

12 . Possibly because I have left behind me the rude belligerency o f a youthful treasurer (in my own mind at any rate i f not in the minds o f my colleagues) o f late I have been increasingly conscious o f a need to improve upon the public and inteivdepartmental images o f the chief financial officer and his treasury. Firstly, I would seek to remove the erroneous and ilk informed belief that the treasurer is a mere accountant'cunvpaymaster, determined only to account for every coin in the C ity ’s parking meters! W hen one considers how relatively minor, and I use the adverb with care and intent, are the accounting responsibilities o f the chief financial officer when contrasted with his inherent obligation to provide dynamic financial management for the council, its committees, and the spending departments; his duty to keep abreast o f all new administrative techniques and to give his employer the constant benefit o f his skilled experience as a financial adviser; then it is high time that the treasurer himself, assisted by his depart' ment, should set about dispelling the miasma o f misunderstanding which so often surrounds him. A n d who is better suited than the chief financial officer himself to bring about a new conception o f the role which should characterise this particular office o f the Corporation? 13

13 . A . L . Imrie, C .B .E ., F .I .M .T .A ., C .A . , C ity Chamberlain o f Edinburgh, in the course o f his 1962 presidential address, declared:

“No more lucid exposition of the fundamental thinking in local government over the years is to be found than the wise pronouncement of Dr. Marshall in his latest book on financial administnv tion. The role of finance is no longer beneficially obstructionist as some used to say, but it is wisely regulatory; financial organisation is not an end in itself— it should be woven into the administration of the authority — finance is not a rite peculiar to the finance department — the need is for the financial arrangements to be an integral part of the organisation — financial responsibility must be felt by every member and employee. No one can demonstrate more authoratively than he that the chartered municipal treasurer has grasped the realities and aspirations of the present time and has fitted himself properly to cope with them. With the assistance and guidance of officials who possess the under' standing and foresight of the author of the Marshall Plan, one need not fear for the future of local government. More than ever, because of the cardinal significance of finance in municipal trans' acdons, the chief financial officer is a figure of central importance in the work of local authorities, and the Institute sets itself the task of equipping him for the full and enlightened performance of his duty.”


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14. My dictionary informs me that the word temerity means unreasonable contempt for danger. W ith temerity typical o f my South African'Irish forbears, I say that i f this Golden Image is to be destroyed completely and replaced with a Human Image, then possibly even greater boldness o f imagination is required than that advocated by Dr. Marshall and endorsed by Chamberlain Imrie!

15 . I believe that local government should progress to the point where every head should be entrusted with a personal responsibility for the expendv ture and income falling within his realm. Some governments have evolved an arrangement wherein the divisional head is also the accounting officer o f the division. This arrangement achieves ideal coordination o f policy and the finance employed upon the implementation o f that policy. Invark ably, the departmental structure equips the divisional head with an expert enced finance officer upon whom he relies for the exercise o f budgetary control and financial advice, but the primary responsibility remains with the divisional head. This pattern does not relieve the chief financial officer o f his overall responsibility to the governing body to ensure that the com' munal budget is not varied, except with good cause and sufficient reason; he remains under obligation to provide management services to his colleagues. I f this relationship is pursued successfully, then the treasurer performs the role o f financial adviser and consultant, not only to the corporate body itself, but also to his fellow heads. It goes even further. W ith positive encouragement from the chief financial officer and his lieutenants, heads are persuaded to accept a direct responsibility, after consultation with the treasury when deemed necessary, for reporting directly to their parent com' mittees on the financial implications o f the proposals or projects which they would seek to execute. It is my personal conviction that the efficiency o f local government will not attain its peak until this bold plan is applied generally in local government spending, the size o f the unit being the only laudable justification for delayed implementation.

16. Readers o f the Institute’s journal will not need to be reminded o f that very challenging paper “ The Role o f Finance in Public Adm inistra' tion” , read recently by Mr. J . W . Cowden, Fellow and Member o f the Institute Council, to the last Conference o f the Institute o f Tow n Clerks. W hilst it will be apparent to you that I tramp on common ground with Mr. Cowden when he stresses that the chief financial officer has a more positive role to fulfil than that o f the abominable No'm an, I urge upon financial officers to co'operate even more greatly with their colleagues to the point where they are themselves guilty o f a heinous crime — to wit — the charge o f striving to find funds for worthy projects that might otherwise be delayed on the grounds that neither the year’s budget, nor the available resources o f the authority, permit implementation!


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17. Having advocated a new look for the chief finance officer, it would be but rational to examine the relationship between the finance committee and the other committees; this I do not propose to do as it will receive attention in one o f the papers to be presented at this conference. I therefore content myself with the observation that I would expect the finance com ' mittee to develop an approach, as between itself and the committees, similar to that which I have advocated twixt the treasurer and his fellow heads. In essence, I plead that each committee and its attendant heads be given a full responsibility, not only for the functional operation o f a public service, but also for its attendant finance. This advocacy is not unreal or untried; it is the proven pattern o f a relationship which has subsisted for many years between the treasury and the other ministries o f government in the United Kingdom.

18. In Southern Rhodesia, a one'man Commission o f Enquiry into the Organisation and Development o f the Southern Rhodesia Public Services reported, inter alia:

“Inevitably, from its statutory position, the treasury is business adviser to the government and its departments on general financial and economic questions, and is a prime element in the co/ordina' tion of the administration of finance for government. In the exercise of these functions, the treasury plans the budget, which involves the preparation of estimates of expenditure and revenue, the consideration of taxation measures and borrowing policy, including management of public debt.

Since the relations of the treasury to other ministries is governed by the rights of these ministries to utilise money over which the treasury exercises supervision, it seems important to examine the function of the accounting officer’ . . .”

19. This chapter began with an observation on the brashness o f youthful financial administrators. It concludes with an assurance that the new approach advocated herein is not the unsteady voice o f senile decay — look around and you will discover the ubiquity o f these new trends. Prudent financial advice is essential to the welfare o f management — it is thus in industry and commerce — it cannot be otherwise in local government.

C O M P U T E R I S A T I O N

“A nd s t i l l th ey ga z ed , and s t i l l the w onder g r ew ,T hat one sm a ll head cou ld ca rry a ll he knew .”

O l i v e r G o l d s m it h

20. Unquestionably, the most revolutionary advance in the past decade has been the intrusion o f the electronic computer, not only into the spheres o f private enterprise, but also into the fields o f public expenditure. A most informative article in the September issue o f Local Government Finance tables fascinating statistics; one table, in particular, gives a clear appreciation o f the rapidly increasing extent to which this tool o f management is being


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employed in local government. Arising out o f a survey conducted by our sister Institute in the United Kingdom , the following numbers emerge in respect o f local government installations.

D A T E O F I N S T A L L A T I O N O F C O M P U T E R S


1 9 5 8 21959 61960 . . . . . . 91 9 6 1 IX1 9 6 2 131 9 6 3 161964 to date . . . . . 1 51965 to date . . . . . 4

76

2 1. Historically, its first field o f application was in the province o f the treasury proper but within a very short space o f time it demonstrated so amazing a performance versatility that its services were extended into the engineering fields, mechanical, civil, and electrical, o f the local authority, as well as the spheres o f the architect and the valuator. Being mindful o f the views which I have expressed on the need to establish greater co-operation between the treasury and the other departments o f the local authority, I believe the computer is proving itself to be a most valuable aid to greater co-ordination in this particular compass o f human relations.

22. Later I shall make reference to cost statistics and their standardised preparation but at this juncture I would stress three remarkable benefits flowing from the use o f computers. Firstly, statistics are processed at lightning speeds, thus giving maximum utility value to the tabulated data itself; secondly, storage is achieved at low cost; thirdly, preliminary planning makes it necessary to examine and analyse the various clerical processes which obtain in the local authority; many o f these clerical processes have common characteristics and objectives; it is therefore possible to interchange this type o f information so as to achieve a greater measure o f standardisation in municipal accountancy.

23. In referring to computerisation, my primary object is to focus attention on one o f the greatest advances made by scientists in our age and one which has already demonstrated its marvellous potential for improving the efficiency and techniques o f management in all fields, local government included. My second objective is to question whether our own local government is alerted sufficiently to sense the urgency to employ electronic data

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processing as quickly as possible. In posing this challenge, I tribute those treasurers who have already responded to the green light and installed com/ puters. Perhaps I might leave this question with them. A re you giving the other departments o f your local authority, and your councillors, the maxi/ mum service from this source?

A U T O M A T I O N

24. I think it fair to claim that computerisation is only one o f the several components comprising the technique o f automation, but because automa/ tion, in turn, conjures up spectres o f unemployment, there is an inescapable obligation upon the shoulders o f local government to assess the consequences o f computerisation in terms o f employment.

25. It is indeed pleasing to report that surveys o f this character are being conducted continuously in the United States by a foundation which not only identifies the problems o f displacement consequent upon automation but also seeks to overcome these unfortunate consequences. The foundation has been sponsored jointly by a company that manufactures automation machinery and by a leading labour organisation. The Foundation on Automation and Employment, as it is designated, obtains its finance from the company which binds itself to a self/imposed tax payable on the lease or sale o f its machinery. The remedial objectives o f the foundation are manifold — in some circumstances, specific research projects are pursued; for example, studies o f the shorter working week and the problems o f retaining adults displaced by automation. This same company has set up a similar norvprofit making organisation in the United Kingdom , the board comprising trade union officials and directors o f public management. Its primary concern is to examine, identify, and introduce ways and means whereby the impact o f automation and technological changes on employees can be assessed and, in turn, mitigated to the maximum extent.

26. The October 1963, issue o f “ Data and Control” contains a chah lenging article called “ Social Planning for Automation” and presented by John I. Synder Junior, President o f U .S . Industries Incorporated; my extractions are beamed on those aspects o f his address which bear upon the province o f local government itself.

H ARSH FA C TS AND MYTHS

“As the head of a company that designs and manufactures automation machinery with a wide number of diverse applications, I feel a responsibility to tell anyone who will listen what are the real facts of automation and so scotch the myths which surround the subject.

The worst of the myths maintains that automation is not going to eliminate jobs. The opposite is true . . .

Another myth states that those who lose their jobs to automation can be retrained for other jobs requiring higher skill and paying more money. Not only are there fewer jobs now available for


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skilled workers, but many workers are not retrainable while others are unwilling to train because they know the jobs for which they might train do not exist.

A n equally naive concept is that workers can find jobs not only running the automated machines, but in maintaining and building them. The hard truth is that after the initial ‘bugs’ have been eliminated there is a relatively little maintenance work to do. If this were not so, then it would not pay to automate.

Another widely held fantasy is that workers replaced by automation in one part of the country can find jobs in other parts. But the truth is that the workers thrown out of jobs are usually those who are least able to move. They are the lower paid, the older, the unskilled. Either they cannot afford the move or they are psychologically incapable of beginning a new life in a strange area.

Not only the blue-collar worker is threatened by automation, the white-collar worker is also being displaced.

AUTO M ATIO N AND THE W H ITE-CO LLAR MAN


This displacement of the office worker means that in time even ‘Parkinson’s Law’ will become outdated. Each year sees the introduction of more and more computers by retail companies, service industries, banks and airlines. The list goes on and on — and it probably means an end to the function of the ‘clerk’ as we know it today.

ANOTHER SIDE

Up to now I have perhaps taken too harsh and gloomy a look at automation, even at the shorter working week.

There is, however, a second side to automation. For automation does put almost incalculable powers at our command to use in the interest and welfare of all mankind. To attempt to deal blindly with one aspect and ignore the other, to see only one bleak side of automation, can lead only to ultimate failure. The fact is automation can work for us or against us — and we must prove ourselves its master.

In our concern about those displaced by automated machinery, we tend to forget the promise automation holds for the millions who will not be displaced.

THE DARK AND THE BRIGHT SIDE

This brings us back to the earlier point on the gloomy image of automation which causes some people so much concern. Is it not possible that in taking a third look at the ‘dragon’ for just a moment we might discover that it does not represent our fears of automated machinery at all, but instead, our fears and our doubts as to our own capabilities to deal with this new technology; Is it not true that it will not be the machines that w ill determine the evil or the good that will produce, but rather the society that uses the machines;”

_ 27- I suggest that local authorities are not without obligation in this field; their increasing use o f computers is only one instance o f the extent to which they are lending themselves to automation benefits in municipal work. Bearing in mind their affinity for social welfare, albeit more so in other parts o f the world than in South A frica, the cheapest premium against the risk o f mass unemployment may yet be a willingness to contribute to the work o f such bodies as the Foundation on Employment and Automation. Understandably, appreciation o f this sadder aspect o f automation is not as acute in our part o f the world as it is elsewhere. Perhaps the

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explanation is to be found in the fact that South A frica ’s continuing indus^ trial expansion has created a demand, particularly in trades o f skill, the extent o f which cannot be matched by available labour resources, including that now being imported from without the Republic itself. Nevertheless, the problem — its inescapability — is there for all to see and only the timing o f its incidence remains in doubt. To be forewarned is to be forearmed!

S T A T I S T I C S

28. Clause 4 (b), ( c) and (e) o f the Memorandum o f Association directs the Institute in the matter o f local government statistics. For myself, I have long felt that a considerable leeway has to be made up i f this objective is to be attained in a manner befitting the standing o f our profession. W hen privileged to present a paper last year, I pleaded for the Institute to survey the character and composition o f the public debt attaching to local authorE ties in the Republic o f South A frica. I am all too ready to admit that the financial resources o f the Institute might well be the primary difficulty in the successful completion o f an exercise o f this kind but we must not admit defeat too early on this score since much o f the work is undertaken elsewhere with the voluntary assistance o f Institute members.

29. A W orking Party recently examined the pattern o f electricity distribution in Southern Rhodesia where power is purchased from a central generating authority and then sold by the local authority itself, or by the Electricity Supply Commission, in bulk or retail. Understandably, attem tion focalised on the absence o f reliable data upon which to base primary reasoning; this, in turn, called attention to an even more disturbing ciu cumstance — the lack o f standardised accounting procedure and present tation within the electrical undertakings o f Southern Rhodesia. Conse^ quently, the following recommendations flowed to the responsible ministry.

“6 7 . Accordingly, it is recommended that Government should frame and enforce a Standard Form of Accounts together with such necessary Financial Regulations as would be appropriate and applicable to all electricity undertakings, whether municipally or otherwise controlled.

72 . The electricity supply industry is one of the most difficult industries from which to obtain satisfactory statistical information. Such information is, however, necessary for assisting techno cal and economic growth; if any value is to be attached to the information obtained from the Standard Form of Accounts proposed in paragraph 67, it must, therefore, be accompanied by and linked to a standard form of statistical information. Accordingly, it is recommended that the preparation and submission of standardised statistical information on prescribed forms should be enforced by appropriate legislation.”

30. I undertake immediately not to preach the gospel o f standardisation but shall confine myself to the subject o f statistics. However, and here I am guilty o f a truism, the collection and marshalling o f statistics is enor^ mously facilitated in the case o f accounts which have achieved some degree o f standardisation.


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3 1. In my opinion the real value o f statistics is in the service which they provide for management. Used intelligently, they disclose internal and external relativities. The domestic relativity enables management to measure efficiency trends within the undertaking itself; external comparisons pinpoint deficiencies which are often technical in character. It is through this process o f constant comparison, using a national screen o f reliable per' formance data, that undertakings are coerced into giving o f their best performance. The use o f electronic data processing units makes light work o f assimilation and analysis; where acceleration is required most, is in the completion o f the basic accounting records from which data is to be ex' tracted; for surely we are agreed that statistics, as an instrument o f manage' ment, must be employed in greatest measure by the spending heads and, i f they are to act promptly in improving upon efficiency and productivity trends, they have an inalienable right to be fed with “ op die kop” data.

32. But I believe that local government in Southern A frica is poorly served in this respect and that the Institute should lead in the elimination o f this deficiency!


C L O S U R E O F A C C O U N T S

3 3. Having attempted to emphasize the value o f statistics as an aid to management, and having stressed the need to produce the primary data in the quickest time possible, it is understandable that, at this juncture, I would wish to direct your interest to the above subject.

34. I was very pleased to observe that the June, 1963, issue o f The South African Treasurer called attention to the fact that once again, in the United Kingdom forum o f local government, argument was being advanced on the case for earlier closing o f the final accounts. After reporting briefly on the scope o f the overseas discussion, our own Journal went on to point out that provincial audit requirements might well inhibit the adoption o f what would be in effect no more or less than an “ income and payments” base. It mentioned too, and rightly so, that certain major local authorities in the Republic have always been able to achieve early publication o f their audited financial accounts, on the commitment base. Reading further afield, it is worthy o f note that the County o f Cheshire, reputed producer o f the fastest abstract in England, contrives to issue its abstract at the end o f June, three months after the closure.

35. Doubtless the issue has teased and exasperated many a treasurer, more particularly when frustrated as a consequence o f comparatively minor delays and petty obstructions which lie beyond departmental control or solution. The degree o f frustration always grows in direct proportion to the finance committee’s unexpressed but easily'sensed impatience consequent

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upon delayed presentation. The treasurer’s cup overflows with bitterness when the authority’s auditors, who have their staffing problems too, impede any acceleration which might have been achieved to date.

36. Oftimes I wonder i f some o f us finance officers are perhaps a little prone to closing the accounts only after we have achieved a very complete and full record o f the year’s committed expenditure; lest I be charged with unprofessional conduct for advocating “ loose” accounting, let me say I am not recommending abandonment o f professional standards but some pursuits must be measured in the context o f the whole. In the overall analysis o f revenue expenditure, comprising some five components, staffing, miscellaneous, maintenance, loan charges, and departmental allocations the first and fourth components are finalised easily and quickly; the third component is rarely conditioned by external commitments since most local authorities perform their own maintenance; the domestic circumstance which delays closure in this arena is more often than not a rigid devotion to writing back uncleared balances on jobbing accounts at the year-end. In my experience the volume o f spending in the second component is relatively minor and it is here where the judicious use o f “ provisions” eliminates the need to await the delayed rendition o f trade accounts. Regarding the fifth component, there is much to be said for using fixed allocations in so far as equity permits to be revised at the commencement o f each financial year. In the sphere o f capital spending, contract accounting presents no difficulty; i f the work is performed departmentally, then perhaps my observation on jobbing accounts is pertinent.

37. May I therefore suggest that the reasonable use o f “ provisions” and “ reserves” , coupled with a more flexible approach to the clearance o f unit cost accounts, plus a little more scope for approximations, should make for earlier closing o f the final accounts, inclusive o f forward commitments. O n the now generally agreed understanding that financial and cost records are not necessarily in balance but can be reconciled in need, it does seem that a speedier rendition o f statistical data can be achieved.

C A N N I B A L I S M

38. For some time now, and in conjunction with the United Municipal Executive, the Institute Council has conducted a fair amount o f research into ways and means whereby the sources o f income available to local authorities in South A frica might be broadened and diversified. Particular attention has been, and continues to be, devoted to a study o f sales taxes as operated by some local authorities in the United States.

39. Against this background it will therefore interest the members o f local government, and their officers, to know that the Government o f


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Southern Rhodesia, in the face o f considerable opposition at all levels, introduced a sales tax effective from the ist November, 1963. The primary object is to increase the territory’s revenue and the onus for collection is placed upon traders who take out licences in terms o f the Liquor A ct, 1953, the Native Beer A ct, 1953, and the Licence Control A ct, 1954. Where turnovers are less than £5 ,0 00 per annum, no tax is required to be imposed or collected; collections are to be declared and remitted monthly to government. Understandably, I shall not use this occasion to discuss the merits and demerits o f the tax but my sole concern is to outline the principles involved and the grave implications for local government.

40. The direct effect o f the new legislation has been to insist that local authorities who operate native beer and liquor undertakings shall be tax-' able. It is permissible to pass on the sales tax to clientele, be they consumers o f spirits or malts. Whether the tax is passed on or not, the most disturbing aspect is government’s decision to tax local authorities in respect o f a service for which they are but trustees and, in addition, are closely circunv scribed by legislation as to the disposal o f profits. This insistence fringes on lunacy when, as in the case o f Southern Rhodesia, it is the local authorities who have provided welfare, health, and amenity services, from this source o f income. The insistence becomes more unreasonable when it is noted that the government, which does not itself appropriate funds for African welfare and recreation, now taxes its own kith and kin, thereby reducing the funds hitherto available for social development in the local authority’s townships. W hilst it is all too easy to maintain that the local authority is not debarred from passing its burden on to the customer (4d. in the £ ) , the transmission o f tax is not necessarily automatic in itself and doubtless many sound reasons can be found for not passing on the impost' in whole or in part, to the consumer.

4 1. I remain mindful o f the concern regarding the South A frican regu/ lation which requires 80 per cent o f the profits accruing through municipal sources from the sale o f liquor, other than Bantu beer, to accrue to govern/ ment but I submit with respect that in that case the principle o f internecine taxation is not at issue and, presumably, the proceeds o f appropriation will be applied for the benefit o f the Bantu. My primary concern centres around the fact that our government has seen fit to tax local authorities. W hy draw the line at spiritis and malts? W hy not electricity and water too? W hilst we accept the fact that in other parts o f the world, local authorities are taxable, I am sure most o f us will deplore and abhor the return to cannibalism in this part o f Africa.


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T H E R E P U B L I C A N E C O N O M Y“A minister of finance cannot, through monetary and fiscal measures — in the final analysis the

only means at my disposal — do more to translate the vision of economic upsurge into reality so that the Republic’s economic garden may become a paradise of fragrance and colour, a picture of productivity and growth, and a source of sustenance and refreshment.”

42. Dr. T . E. Donges, on the occasion o f his 1963/64 budget, concluded its presentation with the above exposition and there is every reason to believe that the scintillating mineral wealth o f South A frica, supported by con/ tinuous advancement in the other three principal sectors o f the economy — agriculture, industry, and commerce — will ensure attainment o f the Mini/ ster’s economic paradise.

43. However, and here I venture forth with some quaking, I would wish to lend my meagre strength to an objective which is enjoying the increasing support o f all responsible citizens and the government o f the day. I refer to the very real need to improve the productivity o f the Bantu worker and to increase his remuneration in like measure. The problem transcends the Limpopo and is also with us in Rhodesia where, unfortunately, the spectre o f unemployment seemingly obstructs progress in this direction. I f the domestic markets for commerce and industry are to continue expanding, and we must surely wish it so, then it is essential to create a greater volume o f purchasing power in the hands o f the lesser income groups; geared to increased productivity, the additional income should be channelled gain/ fully, and what more gainful spending can there be than that devoted to the raising o f living standards.

44. Everywhere indications are apparent that industry, mining, and commerce, are most alive to the need to advance wage levels in return for increased output. W hat I would seek to bring to the front is the role o f local authorities as large employers o f the income groups now under con/ sideration. Experience suggests to me that the general standard o f local government remuneration at this level sometimes tends to lag behind that obtaining in the world o f private enterprise. No doubt some colleague will ask i f this retardation is peculiar to only one group o f local government employees — for obvious reasons the question goes unanswered. May I therefore contend that local authorities have a bounden duty to be satisfied that they are doing their utmost to train their employees for increased produc/ tivity and a share in the profits o f their enhanced efficiency!


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T H E S O U T H A F R I C A N T R E A S U R E R

“A h, y e knights o f the p e n ! M ay honour he y o u r sh ield , and tru th tip y o u r la n c e s !" T h a c k e r a y

45. To the Editor and his willing scribes, I express the sincere thanks o f the Council, members o f the Institute, local government representatives, and students, for their sustained labours on our behalf. The task o f main/ taining consistently high literary standards is no easy objective and oft in the stilly night these worthy gentlemen must needs burn the midnight oil in search o f inspiration. It speaks well for our Editor that he has provided such varied fare for a multitude o f appetites, has provoked discussion without rancour, and has delivered an extremely welkbalanced set o f editorials throughout the year. Perhaps it would not be out o f place, even in a presi/ dential address, to plunder a few o f “ Screwtator’s” lines in his honour.


“As he thought twice before he spoke, He had no judgment to revoke,For he could think without congestion, Upon both sides of every question.Oh, gaze upon this wondrous beast, Defunct ten thousand years at least!”

C O N C L U S I O N

46. The Institute Council remains acutely conscious o f the important trust reposed in it by members. It maintains its cordial affiliation with the United Municipal Executive and, as ever before will further the cause and science o f local government with all the resources at its command.

47. O n behalf o f Rhodesian members I express our thanks for the manner in which you have co/operated to make it possible for us to play a full part in the life o f the Institute — indeed, we are deeply grateful!

48. For myself I cannot praise all o f you too greatly for the loyal support afforded me; to the Vice/President and members o f the Council go my most sincere thanks for having assisted me so loyally in my year o f office.

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P R E S I D E N T S R E D E

I N L E ID IN G

1. Ek het hierdie toespraak met ’n aansienlike mate van huiwering en besorgdheid voorberei. Omdat ek nie in Suid/Afrika woon nie, is ’n grondige begrip van al die moeilikhede waarmee plaaslike bestuur in die Republiek te kampe het buite die kwessie, en daarom het ek gehuiwer. My besorgdheid het ander oorsake. Dit spruit voort uit ’n Don/Quichotterige voorneme om van die tradisionele patroon van presidentsredes a f te wyk omdat ek nie oor die doek en kleure beskik wat nodig is om ’n volledige portret van plaaslike bestuur te skilder nie en dus genoeë moet neem met verskeie klein sketse wat vir die Konferensie van aktuele belang mag wees.

O N T W I K K E L I N G S P R O G R A M M E

2. Dit is ’n onuitgemaakte saak o f plaaslike bestuur besef hoe dringend die behoefte aan vooruitbeplanning is vir sover dit kapitaaluitgawes betref. Die gebrek aan ’n langtermynontwikkelingsprogram skep maar al te dikwels ’n gees van onbestendigheid en die euwels wat daarmee gepaard gaan kom veral aan die lig wanneer die jaarlikse kapitaalbegroting oorweeg word. Hierdie onbeplande bestaan stel mense in ’n groot versoeking om op die laaste oomblik veranderings in die voorrangvolgorde van kapitaalonder/ nemings te bepleit, sodat vooruitbeplanning gestrem word. W at egter by gebrek aan ’n goedgekeurde kringloop van kapitaalbesteding nog groter kommer wek is die fïnansiële beampte se onvermoë om toekomstige belas/ tingneigings te voorspel en die plaaslike bestuur se gevolglike vermoë om lenings/ en onderhoudskoste te dra, te bepaal, veral op die terreine waar kapitaalbesteding niedonend is. 3 4

3. Die konferensiegangers sal onthou dat die Plowdenkomitee, wat in 1961 benoem is, verslag gedoen het oor die probleem wat die beheer oor openbare uitgawes in die Yerenigde Koninkryk oplewer. Die Komitee het dit bepleit dat daar van tyd tot tyd vooropnames uitgevoer moet word wat die hele terrein van openbare uitgawes sal dek; daar sal behoorlik rekening gehou word met die hoeveelheid geld wat gedurende die volgende kringloop beskikbaar sal wees en dit sal die omvang van die volgende begroting bepaal. Daarna sal die program so ver doenlik gevolg word en dit sal mettertyd tot ekonomiese bestendigheid lei en die moontlikheid van veranderings op die laaste oomblik uitskakel. Die Komitee het 00k heelwat klem gelê op die behoefte aan gesamentlike verantwoordelikheid op die terrein van beplanning en geldbesteding.

4. W at Suid/Afrika betref, is dit verblydend om te kan meld dat die Regering van die Republiek geen vermanings nodig het in hierdie verband nie; op die vlak van plaaslike bestuur bly die vraag egter onbeantwoord. Is plaaslike besture as ’ n liggaam bewus genoeg van die voordele wat

[ 5 9 ]

langtermynbeplanning op die terrein van kapitaalbesteding inhouí Is dit nie waar dat daar ’n neiging bestaan om hierdie taak onverrig te laat en as verskoning aan te voer dat daar min bereik kan word deur ’n vooropname uit te voer wanneer daar ’n tekort aan kapitaalfondse is en seifs nog minder as dit nie bekend is hoeveel kapitaalfondse in die toekoms beskikbaar sal wees nie; Die ware antwoord is tog sekerlik dat daar wel ’n behoefte aan hierdie soort beplanning bestaan, ongeag die hoeveelheid kapitaal wat beskikbaar is, en dat die skaarste aan kapitaal die taak net baie dringender maak.

BE RO E PSO PLE ID IN G5. In die 1961/eksamen van ons Instituut het 4 1.5 persent van al die

kandidate geslaag en in die 1962/eksamen was die syfer 43.71 persent. In die Verenigde Koninkryk was die persentasie in 1962, 39 persent en in 1963, 38 persent. Wanneer hierdie resultate gesien word in die lig van die betreklike skaarste aan fmansiële beamptes met beroepskwalifikasies is die vooruitsigte uiters verontrustend. Die vraagstuk van personeelwerwing en opleiding binne die beroep self is ten nouste met hierdie probleem verbonde.

6. A s die beroep van munisipale tesourier sy regmatige status moet behou en die geldelike welstand van plaaslike besture behoue moet bly moet daar onverwyld stappe gedoen word om beter studiegeriewe aan nuwelinge en ongekwalifiseerde beamptes in die laer range beskikbaar te stel. O ngelukkig maak aardrykskundige faktore in Suid/Afrika en, seifs nog meer, in Rho/ desië, die instelling van die stelsel wat as „dagvrystellingskursusse” bekend staan en waarby studente in die buiteland heelwat baat, moeilik. Nogtans behoort dit in die groter stede waar daar universiteite is moontlik te wees om te reel dat sulke kursusse onder beskerming van ’n universiteit of tegniese kollege ontwikkel word. By nadere oorweging sal dit waarskynlik blyk dat daar vir Suid/Afrikaanse studente op die beste wyse voorsiening gemaak kan word deur hulle „blokvrystellingskursusse” of somerskole te laat by/ woon. Hierdie stelsel hou die besliste voordeel in dat studente uit die kleiner stede tydelik by die universiteit self kan gaan woon en dat die kursusse so gereël word dat dit met die gewone universiteitsvakansies saamval. Tensy en tot tyd en wyl plaaslike besture self bereid is om meer samewerking in hierdie opsig te verleen, sal sulke reelings egter min studente aanlok. Tot nog toe is toestemming om tydens gewone werkure spesiale klasse by te woon nie altyd geredelik verleen nie, maar die teenoorgestelde hiervan word vereis en plaaslike besture moet besefdat as dit hulle begeerte is om die kennis van plaaslike bestuurswese te bewaar en aan te vul, dit by hulle berus om daarvoor te sorg dat hulle werknemers voldoende tyd gegun word om beroepskwalifikasies te verwerf. In die geval van die ander beroepslui wat by plaaslike besture in diens is, is dit reeds lankal gebruiklik om aan aspirant/ lede die voorreg te gun om kursusse aan universiteite en tegniese kolleges ter

Presidentsrede (vervolg)

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verwerwing van hulle kwalifïkasies by te woon. Dit beteken ook dat plaas/ like besture bereid moet wees om ’n groter personeel aan te stel as wat gewoon/ weg nodig is, sodat die werkverrigting van die tesourie nie ontwrig o f belemmer word wanneer leerlingbeamptes van tyd tot tyd afwesig is nie.

7. W at hierbo gesê is het betrekking op positiewe samewerking vir sover dit die plaaslike bestuur betref, maar wat nou van die Instituut self? In die sekere veronderstelling dat die Instituut mks te doen sal wil he met enige voorstel wat miskien sy eksamenstandaarde sal verlaag o f die opvoed/ kundige kwalifikasies wat vereis word om tot die tesouriediens toe te tree en later die Instituut se diploma te verwerf, laer sal stel nie, lyk dit noodsaaklik dat die universiteite van Suid/Afrika en Rhodesië gevra moet word om opleiding te verskaf, nie slegs in plaaslike bestuurswese self nie maar ook in verband met die beroepseksamens van die Instituut. Alhoewel ek die korrespondensiekolleges wat tot nog toe die hoofopleidingsbron in verband met die eksamens van die Instituut was alle eer wil laat toekom, voel ek nogtans dat die Instituut se diploma nagenoeg dieselfde status as ’n universi/ teitsgraad behoort te hê. Is daar buite die grense van die universiteite nie ’n nypende tekort aan leermeesters wat ten voile gekwalifiseerd is om onderrig te gee in vakke waarin munisipale leerlinge vaardigheid moet verwerf nie? Dit is dus logies sowel as ekonomies om ten voile gebruik te maak van universiteitslektore en /professore in hulle eie omgewing.

8. Dit is dus maar al te duidelik dat ons in hierdie opsig geen rede tot selfvoldaanheid het nie en die Instituut moet besef watter gevare sy beroeps/ welsyn bedreig en stappe doen om werkgewers oor te haal om vrye tyd beskikbaar te stel; hy behoort die steun van universiteitsdosente te verkry om te voorsien in die werklike behoefte aan onderrig, wat aanvanklik tot „blokvrystellingskursusse” beperk moet wees maar later by graadkursusse ingesluit kan word met leerplanne waarin daar heelwat klem gelê sal word op die tegnieke van finansiële bestuur.

9. Ek wil graag die aandag vestig op die volgende aanhaling uit die Augustus/hoofartikel van „L o ca l Government Finance” :

(>Should not the distant prospect then be the setting up of a local government staff college, not only for accountants and finance staffs, but for the other professional officers, too. Here those likely to reach the top of their profession would come together to be taught higher administration, to take a long, cool look at their work, and to understand the problems which beset their colleagues in other spheres. Part of the time would be devoted to considerations of the individual professions, too, but, for this purpose, they would hive off into separate syndicates. None of this is new, of course, and nobody seems to dissent from the need for a college — but, then, nobody seems to do anything about establishing one, either. Let not the distant prospect be too remote, lest it vanish from sight, and, with it, the hope of replenishing our rapidly diminishing stock of accountants in the public sector.” 10 *

10. Suid/Afrika staan op die drumpel van groot uitbreidings waarvandie omvang nie voorspel kan word nie. Hierdie uitbreiding verg onmiddellik die dienste van baie meer plaaslike bestuurseenhede, eenhede wat onder die


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leiding van gekwalifïseerde administrateurs moet staan indien maksimunv doeltrefFendheid en die doelmatige bestuur van munisipale geldsake wat daarmee gepaard gaan, bereik moet word. Die uitdaging wat aan ons gerig word is om die middele te verskaf waarmee daar betyds in hierdie aanvraag voorsien kan word en ek hoop dat die Instituut teen hierdie belangrike taak opgewasse sal wees want, as dit nie die geval is nie, sal die geldsake van plaaslike besture heel moontlik heeltemal in duie stort.

D IE R O L V A N D IE T E S O U R IE R „The time is out of joint; O cursed spite,That ever I was born to set it right.”

„H am let”

1 1 . Wanneer ons in ons gedagtes, daardie fyn instrument wat ons gesamentlike besit is en wat so baie dinge blootlê, teruggaan en ons loopbane in oënskou neem moet sommige van ons dikwels glimlag. W aarom glim./ lag; Omdat baie van ons daardie vasberadenheid kan onthou waarmee ons, toe ons tot die amp van hooffinansiële beampte verhef is, alles oornag wou regstel deur die eenvoudige en so elementêre proses van meedoënlose fïnan/ siële beheer. Sedertdien het ons onder die invloed van die verdraagsaamheid wat die tyd ons leer, besef dat daardie aanvanklike opvatting van die omvang en aard van ons verantwoordelikhede teenoor ons werkgewers gevaarlik eng was. Latere ervarings en kennisse in die ruwe skool van die lewe het ons gaandeweg, alhoewel op pynlike wyse, geleer dat die juiste sienswyse oor ’n probleem nie noodwendig die van die tesourier is nie, maar somtyds dié wat deur ’n beroepskollega uitgespreek is! En dit bring my tot die kern van die pleidooi wat ek in die volgende paragraaf uitspreek. 12

12. Miskien omdat ek die onbeteuelde strydlustigheid van ’n jeugdige tesourier laat vaar het (in my eie oe altans indien nie in die van my kollegas nie) het ek die afgelope tyd al hoe meer bewus begin raak van ’n behoefte om die gedagtebeeld wat die publiek en die ander afdelings van die hoof/ finansiële beampte en sy tesourie het, te verbeter. E k wil eerstens probeer om die verkeerde en oningeligte opvatting dat die tesourier ’n blote rekenmeester/ cunvbetaalmeester is wat slegs daarop uit is om van elke muntstuk in die stad se parkeermeters rekenskap te gee, uit die weg te ruim. Wanneer ’n mens daaraan dink hoe betreklik gering, en ek gebruik die woord opsetlik en na rype oorweging, die rekenpligtige verantwoordelikhede van die hoof/ finansiële beampte is in vergelyking met sy inherente plig om die geldsake van die raad, sy komitees en die afdelings wat geld bestee, op dinamiese wyse te bestuur; aan sy plig om op hoogte te bly van alle nuwe administra/ tiewe tegnieke en om deurentyd sy geskoolde ervaring as ’n fïnansiële raad/ gewer tot beskikking van sy werkgewer te stel; dan is dit hoog tyd dat die


[ 6 2 ]

tesourier self, met behulp van sy afdeling, aan die werk spring om die waas van misverstand wat horn so dikwels omring, uit die weg te ruim. En wie is beter daartoe in staat om ’n nuwe opvatting van die rol wat hierdie besondere amp in die korporasie speel te laat posvat as die hooffinansiële beampte self;

13 . A . L . Imrie, C .B .E ., F .L M .T .A ., C .A . , die Stadskamerheer van Edinburgh, het in sy presidentsrede in 1962 verklaar:

„No more lucid exposition of the fundamental thinking in local government over the years is to be found than the wise pronouncement of Dr. Marshall in his latest book on financial administration. The role of finance is no longer beneficially obstructionist as some used to say, but it is wisely regulatory; financial organisation is not an end in itself — it should be woven into the administration of the authority — finance is not a rite peculiar to the finance department — the need is for the financial arrangements to be an integral part of the organisation — financial responsibility must be felt by every member and employee. No one can demonstrate more authoratively than he that the chartered municipal treasurer has grasped the realities and aspirations of the present time and has fitted himself properly to cope with them. With the assistance and guidance of officials who possess the understanding. and foresight of the author of the Marshall Plan, one need not fear for the future of local government. More than ever, because of the cardinal significance of finance in municipal transactions, the chief financial officer is a figure of central importance in the work of local authorities, and the Institute sets itself the task of equipping him for the full and enlightened performance of his duty.”

14. Met die tipiese vermetelheid van my Suid-Afrikaans-Ierse voor- vaders verklaar ek dat indien hierdie goue beeld heeltemal vernietig en deur ’n menslike beeld vervang moet word, daar miskien nog sterker verbeeldings- krag nodig is as die wat deur dr. Marshall bepleit word en waarmee Kamer- heer Imrie horn vereenselwig!

15 . E k glo dat plaaslike bestuur tot by so ’ n punt moet ontwikkel dat iedere afdelingshoof persoonlik verantwoordelik gemaak moet word vir die uitgawe en inkomste wat onder horn ressorteer. Sommige besture het sake so gereël dat die afdelingshoof 00k die rekenpligtige beampte van die afdeling is. Deur hierdie reelings word die beleid en die geldelike reelings wat vir die uitvoering van daardie beleid nodig is op volmaakte wyse gekoórdineer. Die departementele struktuur is van so ’n aard dat die afdelingshoof altyd oor die dienste van ’n ervare fïnansiële beampte beskik op wie hy kan staatmaak vir so ver dit begrotingbeheer en finansiële advies betref, maar die primêre verantwoordelikheid berus nog by die afdelingshoof. Hierdie patroon onthef die hooffinansiële beampte nie van sy globale verantwoordelikheid teenoor die bestuursliggaam om te verseker dat die gemeenskaplike begroting nie gewysig word behalwe wanneer daar grondige redes voor bestaan nie; hy staan nog onder die verpligting om bestuursdienste aan sy kollegas te lewer. Indien hierdie verhouding doeltreffend is, speel die tesourier die rol van finansiële adviseur en konsultant, nie slegs vir die korporatiewe liggaam self nie, maar 00k vir sy mede-afdelingshoofde. Dit gaan seifs verder. Met positiewe aanmoediging deur die hooffinansiële beampte en sy luitenante word hoofde oorgehaal om, na oorlegpleging met


[ 6 3 ]

die tesourie indien dit nodig geag word, regstreeks aan hulle komitees verslag te doen oor die geldelike implikasies van die voorstelle o f ondernemings wat hulle w il uitvoer. Dit is my persoonlike oortuiging dat plaaslike bestuur nie sy maksimumdoeltreffendheid sal bereik alvorens hierdie moedige plan nie algemeen in die besteding van geld deur plaaslike besture gevolg word nie. Slegs indien die eenheid te klein is sal dit geregverdig wees om die uitvoering van hierdie plan te vertraag.

1 6. Lesers van die Instituut se tydskrif hoef nie herinner te word aan daardie uiters prikkelende referaat „T h e Role o f Finance in Public A dm in istration” , wat onlangs deur mnr. J . W . Cowden, Genoot en L id van die Instituutraad, op die jongste konferensie van die Instituut van Stadsklerke gelewer is nie. Terwyl dit vir u duidelik sal wees dat ek my met mnr. Cowden vereenselwig waar hy dit beklemtoon dat die hooffinansiële beampte ’n meer positiewe rol moet vervul as dié van iemand wat maar net alewig nee sê, dring ek by finansiële beamptes daarop aan om seifs nouer met hulle kollegas saam te werk, tot op die punt waar hulle self aan ’n snode misdaad skuldig word — naamlik — die aanklag dat hulle fondse probeer vind vir verdienstelike ondernemings wat andersins miskien vertraag sal word op grond daarvan dat nog die jaar se begroting nog die beskikbare bronne van die plaaslike bestuur die uitvoering daarvan moontlik maak.

17 . Noudat ek ’n „nuwe voorkoms” vir die hooffinansiële beampte bepleit het sal dit net logies wees om in te gaan op die verhouding tussen die geldsakekomitee en die ander komitees; ek is egter nie van plan om dit te doen nie aangesien dit in een van die referate wat op hierdie konferensie gelewer word behandel sal word. Ek wil dus volstaan met die opmerking dat ek verwag dat die geldsakekomitee ’n soortgelyke verhouding tussen horn en die komitees moet tot stand bring as die wat ek tussen die tesourier en sy mede-hoofde bepleit het. E k pleit in wese daarvoor dat elke komitee en die betrokke hoofde ten voile verantwoordelik gemaak moet word, nie slegs vir die funksionele werking van ’ n openbare diens nie, maar 00k vir die geldsake wat daarmee saamhang. E k bepleit nie iets wat onwerklik o f onbeproef is nie; dit is die beproefde patroon van ’n verhouding wat reeds jarelank tussen die tesourie en die ander staatsdepartemente in die Verenigde Koninkryk bestaan.

18. In Suid-Rhodesië het ’n eenmankommissie van ondersoek na die organisasie en ontwikkeling van die Suid-Rhodesiese staatsdiens onder andere as volg verslag gedoen:

..Inevitably, from its statutory position, the treasury is business adviser to the government and its departments on general financial and economic questions, and is a prime element in the co-ordination of the administration of finance for government. In the exercise of these functions, the treasury plans the budget, which involves the preparation of estimates of expenditure and revenue, the consideration of taxation measures and borrowing policy, including management of public debt.


[ 6 4 ]

Since the relations of the treasury to other ministries is governed by the rights of these ministries to utilise money over which the treasury exercises supervision, it seems important to examine the function of the accounting officer’ . . .”

19. Hierdie hoofstuk het begin met ’n opmerking oor die voortvarend/ heid van jong finansiële administrateurs. Dit sluit a f met die versekering dat die nuwe benadering wat hierin bepleit word nie die bewende stem van seniele agteruitgang is nie — kyk rondom u en u sal vind dat hierdie nuwe tendense alomteenwoordig is. Verstandige finansiële raad is noodsaaU lik vir die welsyn van bestuur — dit is die geval in die nywerheid en die handel — dit kan nie anders wees in plaaslike bestuur nie.

D IE G E B R U I K V A N R E K E N A A R S „And still they gazed, and still the wonder grew ,That one small head could carry all he knew.”

O l i v e r G o l d s m it h

20. Die mees revolusionêre ontwikkeling gedurende die afgelope dekade was ongetwyfeld die ingebruikname van die elektroniese rekenaar, nie slegs deur private ondernemings nie, maar 00k op die terrein van openbare uitgawes. In ’n uiters insiggewende artikel in die September^uitgawe van Local Government Finance word daar tabelle met interessante syfers ver/ strek; veral een tabel gee ’n mens ’ n duidelike begrip van hoe vinnig die gebruik van hierdie instrument van die bestuurswese by plaaslike besture toeneem. ’ n Opname wat deur ons susterinstituut in die Verenigde K oninU ryk uitgevoer is het aan die lig gebring dat die volgende getal rekenaars deur plaaslike besture gebruik word.

D A T U M W A A R O P R E K E N A A R S G E I N S T A L L E E R IS


1 9 5 8 21959 61960 . . . . . . 91 9 6 1 1 11962 131 9 6 3 161964 tot op datum . . . 151965 tot op datum . . . . 4

76

2 1. Geskiedkundig gesproke, is dit die eerste keer aangewend op die terrein van die tesourie self maar binne ’ n baie kort tyd het dit so veelsydig geblyk dat dit 00k op die terrein van werktuigkundige, siviele en elektro/

[ 6 5 ]

tegniese ingenieurswese van die plaaslike bestuur sowel as op die gebied van die argitek en die waardeerder aangewend is. Met die oog op die menings wat ek uitgespreek het oor die behoefte aan groter samewerking tussen die tesourie en die ander afdelings van die plaaslike bestuur, glo ek dat die rekenaar bewys gelewer het dat dit ’n uiters waardevolle hulpmiddel in die daarstelling van groter samewerking op hierdie besondere terrein van menslike verhoudings is.

22. E k sal later melding maak van kostesyfers en die gestandaardiseerde opstelling daarvan maar op hierdie tydstip wil ek graag net drie van die merkwaardige voordele noem wat uit die gebruik van rekenaars voortvloei. Eerstens word syfers blitssnel verwerk, sodat die getabelleerde gegewens hulle maksimum/nuttigheidswaarde het; tweedens word gegewens teen lae koste opgeberg; derdens maak voorlopige beplanning dit nodig om die verskillende klerklike prosesse wat by die plaaslike bestuur in swang is te ondersoek en te ontleed; baie van hierdie klerklike prosesse het gemeenskap' like kenmerke en doelstellings; dit is dus moontlik om hierdie soort inligting so uit te ruil dat daar ’n groter mate van standaardisasie in munisipale rekeningkunde bereik kan word.

23. W aar ek van die gebruik van rekenaars gepraat het was my hoofdoel om die aandag te vestig op een van die grootste ontwikkelings wat weteiv skaplikes in ons eeu moontlik gemaak het en een wat reeds bewys gelewer het van sy groot moontlikhede ter verbetering van die doeltreffendheid en tegnieke van die bestuurswese in al sy vertakkings, met inbegrip van plaas' like bestuur. M y tweede doel is om te vra o f ons eie plaaslike besture bewus genoeg is van hoe dringend dit is om so gou doenlik van elektromese data' verwerking gebruik te maak. W aar ek hierdie vraag stel w il ek graag die tesouriers wat reeds op die groen lig ag geslaan en rekenaars geïnstalleer het, gelukwens. Miskien kan ek die volgende vraag aan hulle oorlaat. Lewer u aan die ander afdelings van u plaaslike bestuur en aan u raadslede die grootste moontlike diens uit hierdie bron?

O U T O M A T I S A S I E

24. E k dink daar kan billikerwyse gesê word dat die gebruik van reke' naars slegs een van die samestellende dele van die tegniek van outomatisasie is, maar omdat outomatisasie op sy beurt tot die skim van werkloosheid aanleiding gee, rus daar ’n onontkombare verpligting op die skouers van plaaslike bestuur om die gevolge van die gebruik van rekenaars te bepaal vir so ver dit werkgeleentheid betref.

25. Dit is inderdaad verblydend om te kan meld dat daar in die Ver/ enigde State deurentyd opnames van hierdie aard uitgevoer word deur ’n stigting wat nie slegs ingaan op die probleme van verplasing wat op ouuv


[ 6 6 ]

matisasie volg nie maar ook trag om hierdie ongelukkige gevolge to oorkom. Dit stigting is gesamentlik in die lewe geroep deur ’n maatskappy wat outomatisasiemasjiene vervaardig en deur ’n toonaangewende arbeids/ organisasie. Die , .Foundation on Automation and Employment” , soos dit genoem word, verkry sy geld van die maatskappy wat ’n selfopgelegde belasting betaal op sy masjiene wat gehuur of verkoop word. Die maatreëls wat die stigting tref om hierdie toestand te verhelp is velerlei van aard — in sommige gevalle word spesifieke navorsingsondernemings van stapel gestuur; byvoorbeeld studies van die korter werkweek en die probleme wat daaraan verbonde is om vir volwassenes wat deur outomatisasie verplaas word werkgeleentheid te skep. Hierdie selfde maatskappy het ’n soortgelyke organisasie wat nie winsbejag beoog nie in die Verenigde Koninkryk daaiv gestel en die Raad bestaan uit vakbondbeamptes en direkteure in die open/ bare bestuurswese. Die Raad is veral daarmee gemoeid om weë en middele te ondersoek, te identifiseer en in te stel deur middel waarvan die uitwerking van outomatisasie en tegnologiese veranderings op werknemers bepaal en in ’n mate versag kan word.

26. Die ,,Data and ControF’/uitgawe van Oktober 1963 bevat ’n prikkelende artikel met die titel ..Social Planning for Automation” deur John I. Synder junior, die voorsitter van U .S . Industries Incorporated; my uittreksels bevat die aspekte van sy toespraak wat op die gebied van plaaslike bestuur self betrekking het.

H ARSH FA C TS AND MYTHS

„As the head of a company that designs and manufactures automation machinery with a wide number of diverse applications, I feel a responsibility to tell anyone who will listen what are the real facts of automation and so scotch the myths which surround the subject.

The worst of the myths maintains that automation is not going to eliminate jobs. The opposite is true . . .

Another myth states that those who lose their jobs to automation can be retrained for other jobs requiring higher skill and paying more money. Not only are there fewer jobs now available for skilled workers, but many workers are not retrainable while others are unwilling to train because they know the jobs for which they might train do not exist.

A n equally naive concept is that workers can find jobs not only running the automated machines, but in maintaining and building them. The hard truth is that after the initial ‘bugs’ have been eliminated there is relatively little maintenance work to do. If this were not so, then it would not pay to automate.

Another widely held fantasy is that workers replaced by automation in one part of the country can find jobs in other parts. But the truth is that the workers thrown out of jobs are usually those who are least able to move. They are the lower paid, the older, the unskilled. Either they cannot afford the move or they are psychologically incapable of beginning a new life in a strange area.

Not only the blue-collar worker is threatened by automation, the white-collar worker is also being displaced.


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AUTO M ATIO N AND THE W H ITE-CO LLAR MAN

This displacement of the office worker means that in time even ‘Parkinson’s Law’ will become outdated. Each year sees the introduction of more and more computers by retail companies, service industries, banks and airlines. The list goes on and on — and it probably means an end to the fum> tion of the ‘clerk’ as we know it today.

ANOTHER SIDE

Up to now I have perhaps taken too harsh and gloomy a look at automation, even at the shorter working week.

There is, however, a second side to automation. For automation does put almost incalculable powers at our command to use in the interest and welfare of all mankind. To attempt to deal blindly with one aspect and ignore the other, to see only one bleak side of automation, can lead only to ultimate failure. The fact is automation can work for us or against us — and we must prove ourselves its master.

In our concern about those displaced by automated machinery, we tend to forget the promise automation holds for the millions who will not be displaced.


THE D ARK AND THE BRIGHT SIDE

This brings us back to the earlier point on the gloomy image of automation which causes some people so much concern. Is it not possible that in taking a third look at the ‘dragon’ for just a moment we might discover that it does not represent our fears of automated machinery at all, but instead, our fears and our doubts as to our own capabilities to deal with this new technology’ Is it not true that it will not be the machines that will determine the evil or the good that will pro/ duce, but rather the society that uses the machines?”

27. Ek doen aan die hand dat plaaslike besture nie sonder verpligtinge in hierdie verband is nie; hulle toenemende gebruik van rekenaars is slegs een voorbeeld van die mate waarin hulle in munisipale werk van die vooiv dele van outomatisasie gebruik maak. Indien ’n mens in gedagte hou hoe nou hulle met maatskaplike werk gemoeid is, alhoewel dit in ander dele van die wêreld in ’n groter mate die geval is as in Suid-'Afrika, is die goed/ koopste redmiddel teen die gevaar van massawerkloosheid miskien nog ’n gewilligheid om ’n bydrae tot die werk van liggame soos die Foundation on Employment and Automation te lewer. Dit is begryplik dat ons in hierdie deel van die wêreld nie so diep onder die indruk van hierdie treuriger aspek van outomatisasie verkeer as elders nie. Miskien moet ons die ver duideliking hiervoor soek in die feit dat Suid/Afrika se aanhoudende nywerheidsuitbreiding ’n aanvraag, veral vir so ver dit die geskoolde ambagte betref, geskep het waarmee die beskikbare arbeidskragte, met inbegrip van die van buite die Republiek, nie kan tred hou nie. Nogtans is die onontkombaarheid aan die probleem vir almal duidelik en daar bestaan slegs twyfel oor wanneer ons dit sal ondervind. Voorkennis maak voorsorg!

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S T A T I S T I E K

28. Klousules 4 (b), (c) en (e) van die A kte van Oprigting bevat opdragte aan die Instituut in verband met die statistiek van plaaslike besture. W at my betref, is ek reeds lank van mening dat daar nog baie is om in te haal indien hierdie doel op ’n wyse bereik moet word wat die status van ons beroep waardig is. Toe ek verlede jaar die voorreg gehad het om ’ n referaat te lewer het ek dit bepleit dat die Instituut die aard en samestelling van die openbare skuld van plaaslike besture in die Republiek van Suid/Afrika moet ondersoek. E k gee maar al te geredelik toe dat die geldelike bronne van die Instituut miskien die hoofstruikelblok by die geslaagde voltooing van ’n taak van hierdie aard is maar ons moet die stryd in hierdie verband nie te vroeg gewonne gee nie aangesien baie van die werk elders met die vrywillige hulp van instituutlede verrig word.

29. ’n Werkgroep het onlangs die patroon van elektrisiteitsverspreiding in Suid/Rhodisië ondersoek, waar elektriese krag van ’n sentrale owerheid wat dit ontwikkel, aangekoop word en dan deur die plaaslike owerheid self, o f deur die Elektrisiteitsvoorsieningskommissie, by die grootmaat o f teen kleinhandelspryse verkoop word. Die aandag is begryplikerwyse gevestig op die afwesigheid van betroubare gegewens wat as primêre uitgangspunt kon dien; dit het op sy beurt die aandag op ’n nog groter leemte gevestig — die gebrek aan gestandaardiseerde rekeningkundige prosedure en aanbieding binne die elektrisiteitsondernemings van Suid^Rhodesië. Die volgende aam bevelings is gevolglik aan die betrokke minister voorgelê.

„67. Accordingly, it is recommended that Government should frame and enforce a Standard Form of Accounts together with such necessary Financial Regulations as would be appropriate and applicable to all electricity undertakings, whether municipally or otherwise controlled.

72. The electricity supply industry is one of the most difficult industries from which to obtain satisfactory statistical information. Such information is, however, necessary for assisting technic cal and economic growth; if any value is to be attached to the information obtained from the Standard Form of Accounts proposed in paragraph 67, it must, therefore, be accompanied by and linked to a standard form of statistical information. Accordingly, it is recommended that the preparation and submission of standardised statistical information on prescribed forms should be enforced by appropriate legislation.”

30. E k belowe onmiddellik om nie die evangelic van standaardisasie te verkondig nie en sal my tot die onderwerp van statistiek beperk. Maar, en hier verkondig ek ’ n ou waarheid, die versameling en ordening van statist tiese gegewens word uitermate vergemaklik in die geval van rekeninge wat reeds in ’n mate gestandaardiseer is.

3 1. Myns insiens 18 die werklike waarde van statistiek opgesluit in die diens wat hulle aan die bestuur lewer. A s hulle intelligent gebruik word ont' bloot hulle interne en eksterne betreklikhede. Die interne betreklikhede stel die bestuur in staat om doeltreffendheidstendense binne die onderneming self te bepaal; eksterne vergelykings wys tekortkomings uit wat dikwels


[ 6 9 ]

tegnies van aard is. Dit is deur hierdie proses van voortdurende vergelyking, met gebruikmakmg van n nasionale bron van betroubare werkverrigting' gegewens, dat ondernemings aangespoor word om hulle beste te lewer. Die gebruik van elektroniese dataverwerkingseenhede stel mense in staat om die werk van assimilasie en ontleding uiters maklik te verrig; waar spoed die meeste nodig is, is by die voltooiing van die basiese rekeningkundige gegewens waarvan daar datamittreksels gemaak moet word; ons stem naamlik sekerlik almal saam dat statistiek, as ’ n instrument van die bestuurs' wese, in die allergrootste mate deur die hoofde wat uitgawes beheer benut moet word en as hulle vinnig moet optree om doeltreffendheids' en produksie^ tendense te verbeter het hulle die volste reg op die allerjongste gegewens.

32. Maar ek glo dat plaaslike besture in hierdie opsig ’n groot agerstand moet inhaal en dat die Instituut die leiding moet neem om hierdie tekort' koming uit te skakel!

A F S L U I T I N G V A N R E K E N IN G E

3 3- Noudat ek gepoog het om die waarde van statistiek as ’n hulp ' middel vir die bestuurswese te beklemtoon en gewys het op die behoefte om primêre data binne die allerkortste tyd beskikbaar te stel, is dit begryplik dat ek op hierdie tydstip graag u aandag op bogenoemde saak wil vestig.

34- E k was bly om te sien dat daar in die uitgawe van „D ie Suid ' Afrikaanse Tesourier van Junie 1963 aandag gevestig is op die feit dat daar in die Verenigde Koninkryk se forum van plaaslike bestuur weer eens betoog is dat die finale rekeninge vroeër afgesluit moet word. N a ’n beknopte verslag oor die omvang van die oorsese samesprekings het ons eie tydskrif daarop gewys dat provinsiale ouditvereistes heel moontlik die aanvaarding van iets met inderdaad niks meer en niks minder as ’n „inkomste en uitbetalingsAgrondslag nie, sal strem. Die tydskrif het heelte mal tereg 00k gemeld dat sekere groot plaaslike besture in die Republiek nog altyd daartoe in staat was om hulle geouditeerde finansiële rekeninge vroeg te publiseer, en wel op die „verpligtinge” 'grondslag. A s ons verder lees verneem ons dat die graafskap van Cheshire, wat na bewering die vroegste uittreksel in Engeland uitgee, daarin slaag om sy uittreksel aan die einde van Junie, drie maande na die afsluiting, uit te gee.

35. Hierdie tergende kwessie het ongetwyfeld reeds menige tesourier se toorn verwek, veral wanneer hy gefrustreerd voel ten gevolge van betreklik geringe vertragings en kleinlike dwarsboming wat sy afdeling nie kan beheer o f oplos nie. Die frustrasie neem toe in regstreekse verhouding tot die geld' sakekomitee se onuitgesproke maar maklik aanvoelbare ongeduld wanneer die rekeninge vertraag word. Die tesourier se beker loop oor van bitterheid wanneer die plaaslike bestuur se ouditeurs wat 00k hulle personeelmoeilikhede het, enige versnelling wat tot op datum bereik mag wees, strem.


[ 7 0 ]

36. E k wonder dikwels o f sommige van ons fïnansiële beamptes nie miskien ietwat geneig is om die rekeninge slegs a f te sluit nadat hulle heelte/ mal volledige gegewens van die jaar se uitgaweverpligtings ontvang het nie. Opdat ek nie van onprofessionele gedrag beskuldig mag word omdat ek dan ’ n voorstander van „slordige” rekeningkunde sou wees, wil ek dadelik sê dat ek nie aanbeveel dat professionele standaarde laat vaar moet word nie maar sommige werksaamhede moet in hulle hele samehang gesien word. By die globale ontleding van inkomste/uitgawes, wat v y f samestellende dele behels, naamlik personeel, allerlei, onderhoudswerk, leningskoste en depart tementele toewysings, kan die eerste en die vierde deel maklik en vinnig gefinaliseer w ord; die derde deel word selde deur eksterne verpligtings bepaal omdat die meeste plaaslike besture hulle eie onderhoudswerk verrig; die interne faktor wat afsluiting op hierdie gebied vertraag, is gewoonlik ’n te onbuigsame voorneme om oningeklaarde saldo’s op taakrekeninge aan die einde van die jaar terug te skryf. Yolgens my ervaring is die volume van uitgawes wat die tweede deel betref betreklik gering en dit is hier waar die oordeelkundige gebruik van ,,voorsienings” die nodigheid om te wag totdat vertraagde bedryfsrekenings ingedien is, uitskakel. W at die vyfde deel betref is daar, vir so ver dit billik is, veel daarvoor te sê om vaste toewysings te gebruik wat aan die begin van iedere boekjaar hersien word. O p die gebied van kapitaalbesteding lewer kontrakrekeningkunde geen moeilikheid op nie; as die werk departementeel verrig word, is my opmerking oor taak/ rekeninge miskien 00k hier van toepassing.

37. Mag ek dus aan die hand doen dat die redelike gebruik van „voor/ sienings” en „reserwes” , gepaard met ’n buigsamer benadering van die inklaring van eenheidskosterekenings, benewens ietwat meer speelruimte vir benaderings, die vroeër afsluiting van die finale rekeninge, met inbegrip van termynverpligtings, moontlik behoort te maak. Volgens die opvatting wat tans algemeen aanvaar word, naamlik dat finansiële en kostegegewens nie noodwendig balanseer nie maar gerekonsilieer kan word as dit nodig is, lyk dit wel o f statistiese gegewens vroeër verstrek kan word.

K A N N I B A L I S M E

38. Die Instituutraad doen reeds geruime tyd in oorleg met die Verenigde Munisipale Bestuur heelwat navorsing oor die wyse waarop die inkomste/ bronne waaroor plaaslike besture in Suid/Afrika beskik, verbreed en aE gewissel kan word. Daar is en word veral aandag geskenk aan ’n studie van verkopebelastings soos dit by sommige plaaslike besture in die Verenigde State in swang is.

39. Teen hierdie agtergrond gesien sal dit vir lede van plaaslike besture en hulle beamptes dus van belang wees om te weet dat die regering van Suid'Rhodesië in weerwil van heelwat teenkanting op alle vlakke, ’n ver/


[ 7 1 ]

kopebelasting ingestel het wat vanaf i November 1963 van krag is. Die hoofdoel is om die gebied se inkomste te verhoog en dit berus by die hande^ laars wat lisensies kragtens die Drankwet van 1953, die Wet op Naturelle^ bier, 1953 en die Wet insake die Beheer oor Lisensies, 1954, uitneem om die belasting in te samel. A s die omset laer is as ^5,000 per jaar word geen belasting gehef o f mgesamel nie; ingesamelde bedrae word maandeliks aan die regering verklaar en oorbetaal. E k wil begryplikerwyse nie hierdie geleentheid gebruik om die voor/ en nadele van die belasting te bespreek nie en wil slegs die beginsels aandui wat hierby betrokke is en die ernstige implikasies wat dit vir plaaslike bestuur inhou.

40. Die regstreekse uitwerking van die nuwe wetgewing is dat plaaslike besture wat naturellebier en drank versprei belasbaar geag word. Dit is toelaatbaar om die verkopebelasting op die klante te verhaal, o f hulle nou al spiritualieë o f moutdranke verbruik. O f die belasting nou al verhaal word o f nie, is die mees verontrustende aspek die regering se besluit om plaaslike besture te belas ten opsigte van ’n diens waarvoor hulle slegs trustees is en waarvan hulle die winste kragtens wetgewing slegs binne noue perke kan aanwend. Hierdie beleid grens aan kranksinnigheid wanneer dit, soos in die geval van Suid/Rhodesië, die plaaslike besture is wat welsyns/ en gesondheidsdienste en openbare geriewe uit hierdie inkomste^ bron verskaf het. Die beleid word nog onredeliker wanneer dit blyk dat die regering, wat self geen fondse vir welsyn/ en ontspanningsdienste vir Bantoes afsonder nie, nou sy „eie mense” belas en sodoende die fondse wat tot nog toe vir maatskaplike ontwikkeling in die plaaslike owerheid se beantoedorpe beskikbaar was, verminder. Alhoewel dit maar al te maklik is om aan te voer dat die plaaslike bestuur nie verhinder word om sy las aan die verbruiker oor te dra nie (4d. per £ ) is die oordrag van belasting nie noodwendig outomaties nie en daar kan ongetwyfeld baie grondige redes aangevoer word waarom die heffing nie in sy geheel o f gedeeltelik op die verbruiker verhaal moet word nie.

4 1. E k onthou nog die besorgdheid oor die Suid/Afrikaanse regulasie wat vereis dat 80 persent van die wins wat munisipaliteite uit drankverkope, uitgesonderd bantoebier, maak, die regering toekom maar ek voer beleefd aan dat die beginsel wat die belasting van „jou eie mense” ten grondslag le nie hier op die spel is nie en die opbrengs van die heffing sal vermoedelik tot voordeel van die Bantoes aangewend word. E k voel hoofsaaklik begaan oor die feit dat ons regering dit goed geag het om plaaslike besture te belas. W aarom die streep trek by spiritualieë en moutdranke; Waarom nie elek' trisiteit en water 00k nie; Terwyl ons dit aanvaar dat plaaslike besture in ander wêrelddele belasbaar is, voel ek oortuig daarvan dat die meeste van ons die koms van „kannibalisme” na hierdie deel van A frika laak en verafsku.


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T H E R E P U B L I C A N E C O N O M Y„A minister of finance cannot, through monetary and fiscal measures — in the final analysis the

only means at my disposal — do more to translate the vision of economic upsurge into reality so that the Republic’s economic garden may become a paradise of fragrance and colour, a picture of productivity and growth, and a source of sustenance and refreshment.”

42. Dr. T . E . Donges het by geleentheid van sy begroting 1963/64 sy toespraak met bostaande uiteensetting afgesluit en daar bestaan alle rede om te glo dat die skitterende minerale rykdom van Suid/Afrika, gepaard met volgehoue ontwikkeling in die ander drie hoofsektors van die ekonomie — landbou, die nywerheid en die handel — die verwesenliking van die Minister se ekonomiese paradys sal verseker.

43. Maar, en ek doen dit met ’n mate van huiwering, ek wil 00k my beskeie deel bydra ter verwesenliking van ’ n doel wat in ’n toenemende mate die steun van alle verantwoordelike mense en die huidige regering begin geniet. Ek verwys na die groot behoefte wat daar bestaan om die produksie/ vermoë van die Bantoe/arbeider te verbeter en sy besoldiging insgelyks te verhoog. Die probleem word 00k oorkant die Lim popo by ons in Rhodesië ondervind waar die skim van werkloosheid ongelukkig blykbaar die ont/ wikkelings in hierdie rigting strem. A s die huishoudelike markte vir die handel en die nywerheid moet aanhou uitbrei, en ons hoop beslis dat dit sal gebeur, is dit noodsaaklik om groter koopkrag in die hande van die laer/inkomstegroep te skep; gepaard met ’n groter produksievermoë, moet die bykomende inkomste winsgewend gekanaliseer word en geen geld kan winsgewender bestee word as geld wat aangewend word om die lewenspeil te verhoog nie.

44. Daar bestaan oral aanduidings dat die nywerheid, die mynwese en die handel uiters bewus is van die noodsaaklikheid daarvan om loonskale te verhoog in ruil vir ’n groter opbrengs. W at ek graag wil beklemtoon is die rol van plaaslike besture as groot werkgewers vir die inkomstegroepe waarvan hier die rede is. My ondervinding dui daarop dat die algemene peil van die besoldiging wat plaaslike besture aan hierdie groepe betaal somtyds neig om agter te staan by die wat private ondernemings betaal. Een o f ander kollega sal ongetwyfeld vra o f hierdie agterstand slegs kenmerkend is van een groep werknemers van plaaslike besture — die vraag moet om klaar/ blyklike redes onbeantwoord bly. Mag ek derhalwe betoog dat dit plaaslike besture se dure plig is om toe te sien dat hulle alles in hulle verrnoe doen om hulle werknemers vir ’n groter produksievermoë op te lei en hulle te laat deel in die winste van hulle verhoogde doeltreffendheid!


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T H E S O U T H A F R I C A N T R E A S U R E R


„Ah, ye knights o f the pen ! May honour he your shield,and truth tip your lances!” ~

r 1 T h a c k e r a y

45. E k wil die Redakteur en sy gewillige helpers namens die Raad, die lede van die Instituut, die verteenwoordigers van plaaslike besture en die studente opreg bedank vir hulle volgehoue arbeid om ons ontwil. Die Die taak om ’n deurgaans hoë literêre peil te handhaaf is nie maklik nie en hierdie agbare here moet uit die aard van die saak dikwels tot in die middernagure na inspirasie soek. Dit sê veel vir ons redakteur dat hy so ’n groot verskeidenheid vir so baie verskillende smake kon opdis, dat hy besprekings sonder haatdraendheid kon uitlok en dwars deur die jaar so ’ n goed gebalanseerde stel hoofartikels kon lewer. Miskien sal dit seifs in ’n presidentsrede nie onvanpas wees om ter ere van horn ’n paar van „Screwtator” se reels aan te haal nie:

„As he thought twice before he spoke,He had no judgement to revoke,For he could think without congestion,Upon both sides of every question.Oh, gaze upon this wondrous beast,Defunct ten thousand years at least!”

S L O T46. Die Instituutraad bly skerp bewus van die groot vertroue wat lede

in horn stel. Dit bly op vriendskaplike voet geaffilieer met die Verenigde Munisipale Bestuur en sal soos altyd die belange en kennis van plaaslike bestuur met al die bronne tot sy beskikking bevorder.

47. Namens die Rhodesiese lede wil ek dank betuig vir die wyse waarop u saamgewerk het om dit vir ons moontlik te maak om ten voile aan die Instituut se sake deel te hê — ons is inderdaad innig dankbaar!

48. W at my betref, kan ek u almal nie genoeg lo f toeswaai vir die getroue ondersteuning wat u my laat toekom het nie; aan die Onderpresident en lede van die Raad my opregte dank vir hulle getroue bystand gedurende my ampsjaar.

D i s c u s s i o n

T h e P r e s i d e n t : The Presidential Address is now open for discussion. According to our normal procedure, two or three speakers have been selected to make formal contributions to the discussion on this Address and on each o f the succeeding papers, but, as far as time permits, we would like all delegates to comment.

I now invite Councillor Rutowitz, a member o f the Management Com / mittee o f Pretoria, to open discussion on the Presidential Address. In asking

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Councillor Rutowitz to perform this duty, I think we should all be know/ ledgeable of the fact that he has had a very illustrious career with the Pretoria Municipality. In looking at his credentials, I find that he was born in Pre/ toria and, seemingly, has given most of his time and service to that city; in fact, I can only describe him as a “ware” Pretorian.

C ouncillor R. Rutowitz (Pretoria): Mr. President of the Institute, Your Worship the Mayor of Pretoria, Councillor van der Walt, ladies and gentlemen, it was indeed a pleasure for me to listen to your excellent Address. As President of the Institute, you occupy a very high office, which conv mands respect and recognition. I know also that Rhodesia has always been a very active member of the Institute; in fact, on no less than three occasions in the last ten years, we experienced your hospitality and goodwill. It is, therefore, an honour to have you in Pretoria and for me personally a great privilege to reply to your paper.

The story of the Institute is the story of mutual endeavour and we are proud of its achievements. Indeed, as you have shown in your paper, there is still unlimited scope for the work of the Institute.

Mr. President, we live in interesting times. South Africa is a young and vigorous nation and we have great resources. Production is increasing, as you mentioned expansion is evident on every side, and the whole situation presents a challenge to our planners. I think that it would be a tragedy if we did not exploit our resources of labour and materials to the best advantage. Recently I met a visitor from overseas who was very interested in the economic aspects of this country and, after showing him around, he said to me: “Well truly, you are living in a paradise.”

Well, as I mentioned, there is a lot of work to be done and let me say, Mr. President, that the local authorities, and of course the Institute, have a vital roll to fulfil in the future development of this country.

Meneer die President, ek het reeds genoem dat dit absoluut noodsaaklik is om die beste gebruik te maak van ons beskikbare hulpbronne om die vooruitgang van die land te verseker en ek was dus besonder bly om die konstruktiewe voorstelle te sien wat u in u rede aangevoer het. U het verklaar dat verstandige finansiele raad essensiëel is vir gesonde bestuur en dat tegniek en doeltreffendheid ver beter word deur behoorlik opgestelde koste^statistieke. Ek wil graag met hierdie aspek handel, want sonder die basiese gegewens kan die beplanner nie sy taak behoorlik afhandel nie. Dit is ook vanselfsprekend dat ons stelsel deur plaaslike owerhede met sukses gebruik kan word alleen op ’n uniforme of gestandardiseerde basis. Dit is absoluut noodsaaklik, want dit sal die geleentheid bied om die relatiewe doeltreffendheid te meet van verskillende ondernemings. In die afwesigheid van ’n mikpunt of ’n standaard, is dit baie maklik vir ’n organisasie om sy dryfkrag te verloor.

Meneer die President, in die sakewêreld word die onbekwame verwyder deur mededinging en die winsmotief. Wie gee om as ’n onderneming van die veld verdwyn? Die feit dat ’n ondoeltreffende onderneming van die veld verdwyn is in ’n opsig ’n beskerming vir die publiek.

Op die ander hand, in ’n monopolistiese organisasie soos ’n plaaslike bestuur, is daar ’n sekere effek wat volg op ondoeltreffendheid. Die koste van ons dienste word opgeskuif of belastings word verhoog. Daar rus dus ’n baie groot verantwoordelikheid op beide raadslede en amptenare om te sorg dat die beste gebruik gemaak word van die jongste tegniek en metodes om doeltreffendheid te bereik.

Dit herinner my aan die storie van die jong seun wat sy matriek afgelê het en ’n bietjie traag was om te begin met sy werksloopbaan. Sy vader het horn toe geroep en gesê: „Kyk my seun, dit is nou tyd dat jy met werk begin. Op jou ouderdom het ek dadelik ’n pos aanvaar in ’n algemene handelaars' winkel teen R3 per week en na vyf jaar was ek die eienaar van die winkel.” Sy seun kyk so vir horn en sê: „Pa, ja, maar dit is nie meer moontlik vandag nie. Jy sien hulle het nou kasregisters ingestel.” Dit is nou weer ’n geval van ’n nuwe tegniek.

Meneer die President, syfers vertel geen leuens nie. In plaaslike bestuurskringe kan ons behoorlike standaarde van prestasie daar stel alleenlik as ons ’n organisasie vir statistiek opbou en die veld is baie groot. Ek noem maar n paar; Bantoebier, voorbereiding en verkoop, rekenings opstel, kwitansies uitreik, elektriese stroom ontwikkel, paaie bou en slagpale beheer. Dit is almal items wat hulle maklik

Presidential A ddress—D iscussion (continued)

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vetleen aan kontrole. Baie van die lede hier het te doen met die jaarlikse begroting en as ons daarmee besig is, sien ons al die syfers na. Die atbeid en materiaal lyk redelik, die koste lyk redelik op ’n geskied- kundige basis, maar daar is geen positiewe aanduiding wat vir ons wys dat die organisasie werklik teen ’n doeltreffende tempo werk nie. Meneer die President, ek kan amper nie glo dat so min gebruik van statistieke gemaak word deur plaaslike owerhede nie. Vir jare het ek as raadslid gesoek na ’n metode om die werklike prestasie van ’n onderneming te bepaal, maar ongelukkig sonder bevredigende resultate.

Meneer die President, ek wil kortliks verwys na ’n voorbeeld van ’n kontrole-stelsel wat gebruik word in die private sakewêreld. Ek gebruik dit hier as ’n voorbeeld. Die voordeel van hierdie stelsel is dat deur ’n redelike eenvoudige kontrole baie aspekte van ’n onderneming onder beheer gebring word. Dit bring mee beheer oor grondstowwe in terme van produksie, die produkte wat geproduseer word, die waarde van verkope en die kontant. Dit is my ondervinding dat dit sonder so ’n stelsel nie moontlik is om afwykings van die normale agter te kom nie.

Ek dank u, Meneer die President, vir die geleentheid om hierdie bespreking te open en ook vir die pragtige rede wat u gelewer het. Baie dankie.

T he P resident : Ladies and gentlemen, the next speaker on the paper w ill be Mr. W igg , the C ity Treasurer of Bulawayo. I have seen to it, of course, that nothing personal w ill emerge between us as he attacks this paper. Mr. W igg .

Mr. C. C. W igg (City Treasurer, Bulawayo): Mr. President, Mr. Mayor, ladies and gentlemen. Mr. President, I must thank you very much for ranging over your nine canvases. You seem to have picked out lots of items of topical interest which are engaging the attention of treasurers and councillors at the present time. I cannot obviously cover the nine canvases but I will make reference to certain points.

On the question of development programmes, small authorities do not incur capital expense, or incur it very rarely, and one cannot expect them to have capital programmes in being; but the larger local authority without a capital programme would seem to me rather like a ship without a rudder, and I consider a development programme essential in this case. It has been established, I think, from surveys that a great number of authorities do not have regular development programmes, but it does seem that, in the last analysis, you must have forward planning and forward thinking, otherwise your last state is going to be a great deal worse than your first.

On the other hand, unless funds are reasonably assured, development programmes are reduced to academic exercises. I agree with you that on our side of the Limpopo this problem is particularly acute, but there are in our case, Mr. President, other aspects. We have, unfortunately, experienced a falling off in the rate of expansion of our revenues to which we were formerly accustomed, and I find in my own case that it is not always easy to persuade my councillors that, with this falling off in revenues,I have not got available sufficient expanding revenue to service the additional loans which they would like incurred. We hope that that position will be corrected soon.

There is one other point under Development Programmes where you refer to the Plowden Commit'’ tee. The Committee says that the capital programme would be adhered to as far as possible, making for economic stability in the long term and eliminating the possibility of last-minute variations. Now, it does occur to me that in modern times governments have economic experts, and one of the tricks of these experts, which is carried out in the local Treasury, is that they switch public spending or curtail public spending as a weapon against inflation where they are frightened of this bogey of inflation. As far as I know, this measure has been taken rather suddenly and without notice, so that if it is going to be an effective weapon — in other words, if public investment is going to be suddenly curtailed to prevent the economy running away in a new era of inflation — it does seem to me that the Plowden Committee will not reach its target and that you will get sudden changes.

On the question of professional tuition, I want to be a little provocative if I can. I feel that all professional institutes are jealous of their standards, which actually reflect the standing of the members of those institutes, and, contrary to what people will tell you, the standards in the various professional institutes, in my view, have been increasing year after year. You will be told that the standards have


[ 7 6 ]

not improved, but I strongly suspect that they have. The demands on the students have been increasing, and, just to give you an example, the United Kingdom Institute has decided to set questions on the operation and handling of computers. Now, when the Examinations Council decide that a student must know quite a lot about a very involved subject, do they at the same time say: “Well, the poor chap cannot be expected to keep up with everything, so we will cut out any questions on insurance or mercantile law or something like that?” I doubt it. They expect him to cover the whole syllabus. A ll they do is add to the syllabus; they never reduce it. Mr. Jones did mention that specialisation is something with us, although we may not like it. I have discussed with friends in the medical profession why they have so many specialists — resulting in the patient being sent from one person to another. Their answer is that the advance in medical science is so tremendous, and the strides taken so great, that one man cannot keep pace with all the different aspects of medicine. He cannot be an expert in different branches, so that he must specialise in one field or remain a general practitioner. As I mentioned earlier, Mr. Jones made reference to this matter in his address. Specialisation is with us, but what is the accounting profession doing about it, Mr. President’ I know that it is a very difficult subject, but I feel that it is inevitable, some time or another, that the various accounting bodies agree on some basic accounting qualifications. You have the Institute of Chartered Accountants, the Institute of Cost and Works Accountants, the Certified and Corporate Accountants, and the Institute of Municipal Treasurers. My view is that accounting is not so very different; it is a basic requirement of all these Institutes, and specialisation will have to come afterwards. I do not know what the details of specialisation would be, but what I have in mind is that you must have some sort of a basic course, rather like the Bachelor of Commerce Degree in South African Universities, with practical experience! which will go through all the fields of accounting, so that a man who has passed this examination would be able to turn out any accounts that are required, whether they be municipal, government, company, estate accounts, or any other kind of accounts, and he would also be expected to know something about computers, because that is integral with accounting. Thereafter he would have to obtain a diploma, and the diploma that he would obtain for serving a local authority would not be a Municipal Treasurer’s Diploma, but a Diploma in Public Finance, and the Institute that awards this diploma would expect its members to be not only in local government service but in Provincial and Central Government service as well. A ll the Government departments should insist on such a man. I am just putting this threat to you, Mr. President, because I feel the Institute Council must think about this matter. Accountancy as it is set up at present is divided into narrow sectors, which do not spell success in the long run and do not provide the answer for the future. You would have an Institute of Taxation and a man would get a Diploma in Taxation, and so it would go on, rather like the medical profession.

Mr. President, I was very pleased to see the section of your paper dealing with the role of the Treasurer, and I cannot agree with you more wholeheartedly. I think that the lack of co-operation between the various departments has been a failure which has been fairly obvious in certain towns and cities in this country. The trouble will arise — or does arise — at what point must the co-operation come about; it should come right at the beginning of a project. You mention that you are breaking new ground perhaps, in suggesting that the Chief Financial Officer should be encouraged to submit his report, including all the financial implications, direct to his committee or his Council. There exists a danger where this is done and the Treasurer is not in complete agreement with the Chief Financial Officer; attitudes may harden from the Committee, members of the Council take up an attitude which is difficult to dispel, and it becomes harder in the later stages of the consideration of that report to put matters right again. I think the ideal approach must be agreement between the Treasurer and the Chief Financial Officer in the early stages, and if their agreement cannot be obtained, then the Treasurer must reserve his right to put his opposite views to the Finance Committee, who will finally adjudicate on the position generally.

The closure of accounts is, I suppose, really not the problem that some of us think it is. Apparently it was dealt with very successfully by Dr. Marshall, whom you quote. Coventry, as you know, has a great reputation for getting its abstract of accounts out almost immediately after the close of the financial year. I had the privilege of attending a little address by Dr. Marshall where he said that he had been unduly worried about this matter and had appointed a special committee to find out exactly why the accounts were not closed off in time. He had then taken up each point raised by this committee and had dealt with it. One of the points which he mentioned which amused me was, I think, the question


[ 7 7 ]

of the allocation of establishment charges. Apparently it was a practice in Coventry to write to each of the departments advising them of the amounts fixed for establishment charges and asking them whether they agreed with these amounts. In practice, these letters were never answered, and the problem was solved by putting through estimated amounts and advising the departments afterwards, any adjustments being effected the following year. Depending on the size of the local authority, no particular harm can come of following such a course.

On the subject of statistics, Mr. Chairman, Councillor Rutowitz has said a lot. I agree with you that something should be done about statistics. I seem to remember Mr. Rode, about ten years ago, talking on the same subject, advocating the compilation of statistics. I do not see how it can be an insuperable problem, or how it can be so expensive, and I cannot see how it can be beyond the resources of the Institute. If it is, then I suggest that the Government Statistical Agency could handle the question. In the nationalisation of the electricity services in Britain, you have, I think, a perfect example of the coming into being of standardised 'tatistics. The authorities themselves consisted of local boards and companies, all with their own ideas of bookkeeping. After nationalisation, the various regional boards held meetings, the accountants of the boards agreed on the system of presentation of statistics, and you now have, I believe, probably the finest electricity statistics in existence as a result of all this co-operation. I am not, however, advocating that you must nationalise any undertaking before you can standardise its statistics.

That is all I have to say, Mr. President. I thank you very much indeed for what is a most interesting and inspiring Address. Thank you.

T he P resident : Ladies and gentlemen, the paper is now open for general discussion.

Mr. O. D. G orven (City Treasurer, Durban): Mr. President, I would like to add to the thanks which the previous two speakers have expressed, my thanks for your Address which has been an entirely practical Address, in fact the type of Address which we have come to expect from you, Sir, in this year of your office.

I would like to talk on just two points, Sir; the first one has been touched on already and that is the question of capital planning.

I am not too sure whether the size of the authority is an important factor in the question of capital planning. In fact, I am almost tempted to say, Sir, that it may be more important for smaller local authorities to watch this aspect even more carefully than larger authorities, although, of course, the larger authority has a tremendous responsibility in this regard. I have seen smaller local authorities fall into great financial difficulties because of the lack of this very kind of thing. I think, Sir, that if all of us — and I know that not many of us do this — were to construct a capital programme on a three or a five year term and review this programme each year, one could almost afford to ignore the possibilities that might lie ahead of us. I do not think that we should hesitate to do this, because we feel that there might be a capital shortage, or there might be this type of control, or there might be inflation or any other reason at all. I think that one should construct this programme and look at it and now and then use it to determine two things. The first thing one must determine is the effect it has on one’s revenue accounts and hence on tariffs of charges, and also on the rate fund. I agree, of course, that the unremunerative outlays are the more worthy ones to watch, although remunerative outlays themselves can sometimes also deceive one into thinking things are all right, whereas, in fact, one is going to experience a tariff bump up if one is not careful. The second thing one should look to these forecasts for is a form of capital planning to avoid, if possible, the peaking of the local authority’s borrowing requirements and any reborrowing that might stem from the particular circumstances of the money market of the time if one cannot raise one’s capital finance for a sufficiently long period.

In short, Sir, I feel that in this kind of thing it is our job to be in the role of the adviser to the Council. We must forecast what is going to happen or what is likely to happen to the best of our knowledge and belief, and we must tell the Council of these effects rather than merely be carried along with the tide, as will inevitably happen if we do not do this kind of thing. We must act as management accountants, in the more modern sense of the word. This is, in fact, a sphere in which we have been operating for very many years.

The second aspect on which I would like to talk, Sir, is computers. When I read your remarks of the intrusion of the electronic computer into local government, I wondered whether you were

Presidential A ddress—Discussion (continued)

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perhaps averse to this aid, this new aid which has become available to us; but as I read further I saw that, far from that being the case, you were telling us to keep well into the forefront and the particular point I would like to make here is this: that the computer, far from remaining a tool applicable only to large authorities, is now becoming available to smaller authorities. Machines which are less expensive are being developed; the so-called second generation machines are both cheaper and faster, they are smaller in capacity and more suited to smaller local authorities. There are bureau services which can be made available and, in fact, I do not think it is going to be very long before the technological developments are such that certainly all medium-sized authorities in this country will be able to make use of this type of equipment. There is the temptation, of course, to endow this equipment with some kind of superiority of brain power, which is not the case; it can only do repetitive work which you tell it to do; and there is also a temptation when one uses this equipment to try to use it for everything. That is something which should be avoided just as much as the temptation sometimes to have one of these machines just for the sake of having it.

The problem of redundant staff is there; it is something that we have to organise for, but it is something which should not deter us one jot. The revolution in the clerical field is not, I think, as great at this stage as was the industrial revolution, and I think it is right to say that the use of this type of equipment intelligently can only lead to a raising of living standards. After all, if we free the human endeavour, which is today bound down with clerical and administrative work, for more productive uses we in the end will all gain.

Well, Sir, with just those two comments may I once more thank you very much indeed for a most interesting and illuminating Presidential Address.

C ouncillor C olonel C. W . W ood (Pietermaritzburg): Mr. President, I want to look at this town planning — the long term planning — from a Councillor’s point of view. I would like to ask one or two questions, because I do not feel that a councillor coming to a huge conference such as this always gets some practical knowledge to take back and work upon. We talk airily about long term planning. Now what I would like to know, in the first place, is who is the person that originates this long term planning! Who puts the first plan across! Is it the City Treasurer! If it is the City Treasurer, from whom does he get all his plans! Does he go to the City Engineer or the Electrical Engineer, the Forestry Officer, or what have you, and ask them to produce a plan, or does the City Treasurer work through some committee, such as the Committee of Heads of Departments! In our own Municipality I have always wanted to start something in the nature of a five or a ten year plan, but whenever I mention ^ is to councillors, they turn round to me and say: “Look, are you expecting the present ratepayer to be saddled with starting an immense project such as you envisage?”

What I would like to know is: are we really entitled to start such a plan, knowing full well the future financial implications! Are the ratepayers then going to turn round and say: “Well, we want something now, but we do not want to be told what to do in seven or eight years hence.” We have in Pietermaritzburg a huge project for the opening up of the centre of our Municipality. I hope you do not mind my mentioning my own city. So far, we have got a wonderful plan and a wonderful model. Now who is it that starts the ten year plan that is going to put that model into a practical plan! That is what I do not know. I try to start some form of discussion on it in the Finance Committee, but it does not make much sense there. I try to start some form of discussion on it in the Works Committee, of which I am a member, and councillors are frightened of it there. I would, therefore, like someone to give me some lead as to what I should try to put across to my Council in order to get things moving.I am not saying that we are not a go-ahead Municipality. We are going right ahead, but we are missing out, and are not getting on with the job fast enough. I would like some members of this huge gathering to give me some indication of what they think is the right way to start schemes of such a magnitude.

Thank you very much, Mr. President.

Raadslid Mev. I. W engel (Kempton Park): Meneer die President en here, ek wil graag die vorige spreker antwoord want ek dink dat ons in Kempton Park daarin geslaag het om baie suksesvol op n langtermynbasis te werk. Ons het seker sowat vier of vyf jaar gelede daarmee begin. Voorheen het ons raadslede elke jaar bymekaar gekom om die werkeprogram vir die jaar te bespreek. Dan gebeur dit byvoorbeeld dat een of ander projek geweldig sterk gestoot word maar weens gebrek aan finansies later uit die begroting geskraap word. In die daaropvolgende jaar is daar weer ’n bespreking maar dan kom daardie saak miskien nie voor nie want daar is dan ander sake wat meer dringend is.


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Nou het ons ’n beter metode. Ons het ’n paar jaar gelede al die Afdelingshoofde gevra om ’n lys op te stel van wat hulle meen in hulle afdelings nodig gaan wees gedurende die volgende vyf jaar. Nou wanneer ons elke jaar die raad se begroting en werkeprogram opstel het ons daardie lys voor ons en ook ’n aanduiding van hoeveel van wat in die vyfjaarlikse program voorkom alreeds voltooi is. Dit vergemaklik die werk van die amptenare en gee aan die raadslede ’n geleentheid om hulle gelief- koosde projekte wat hulle miskien in ’n onoordeelkundige oomblik aan hulle kiesers beloof het op die program te kry en vir die kieser te sê: „Wel, kyk, dit is op die program, dit word nie vanjaar gedoen nie, maar dit word moontlik aanstaande jaar gedoen.” Groot projekte wat baie geld gaan kos word verdeel oor ’n paar jaar en word stuksgewys gedoen en nie een van die gedagtes of planne word ooit uit die oog verloor nie. Ek sou vir die vorige spreker sê dat die antwoord eenvoudig is: „Die Raad moet bymekaar kom en besluit om so ’n lys op te stel en te gebruik as ’n basis vir hulle programme vir die toekoms.”

Dankie Meneer die President.Raadslid C. J . De K ock (Klerksdorp): Meneer die President, saam met die vorige sprekers wil

ek graag vir u van harte geluk wens met hierdie skitterende rede wat u vanmóre vir ons gelewer het. U het hier aan soveel oorspronklike sake geraak, en belangrike sake, dat dit in die tyd tot ons beskikking seker nie moontlik sal wees om elkeen in besonder te bespreek nie. Ek het slegs ’n paar aanmerkings, ek sal net ’n paar minute opneem.

W at betref u ontwikkelingsprogram: die gedagte wat u daar uitspreek van vooruit beplanning, wil ek my hartlik mee vereenselwig. Dit is een van die leemtes wat ons in stadsrade en plaaslike owerhede vandag het dat ons nie ver genoeg vooruit beplan nie. Ek dink Kempton Park het ’n baie goeie gedagte daar en dit is die moeite werd om dit te volg. Ek sal baie bly wees as nog meer van ons dit wil doen, maar die gedagte sal in elk geval oorgedra word na ons verskillende rade om in die toekoms baie aandag daaraan te gee.

Die tweede punt wat ek graag ’n opmerking oor wil maak is die beroepsopleiding wat u so beklenv toon het. Meneer die President, dit is vandag een van die noodsaaklikste dinge nie alleen vir plaaslike besture nie, maar ook vir die sakewêreld. Daar is ’n nypende tekort aan opgeleide mense in alle rigtings en die stadsraad trek altyd aan die kortste end om die regte mense te bekom en te behou. U het die gedagte hier uitgespreek dat die Instituut meer moet doen, maar ek dink die grootste deel kan gedoen word deur plaaslike owerhede self. Hoekom kry ons nie die mense nie? Hoekom is ons jong mense wat in die diens van die plaaslike owerhede kom so geneig om weg te gaan, of so traag om te studeer vir die diplomas van die verskillende Institute? Die geheim lê hierin opgesluit, Meneer die President. Geskoolde arbeid is vandag in Suid-Afrika baie skaars en duur en ’n man kan vandag vra amper wat hy wil in die besigheidswêreld as hy bekwaam is en veral as hy ’n uitstaande man is. Plaaslike owerhede moet oorweeg om aan hulle opgeleide mense die geleentheid te bied om tot die uiterste te ontwikkel, deur vir hulle besoldigings daar te stel en aan te bied wat vir hulle sal aanmoedig om daartoe oor te gaan om te studeer en daar te bly.

Meneer die President, ons besoeker, meneer Jones van die Verenigde Koningkryk, het herhaalde male vanmóre verwys na die onafhanklike status van die tesourier. Is dit waar in Suid-Afrika? Is dit waar in al die opsigte by ons stadsrade? Ek is geskok, Meneer die President, om te verneem dat daar wel stadsrade in die Transvaal is wat onder hierdie huidige stelsel nie die stadstesourier toelaat om die besprekings van die bestuurskomitee by te woon nie. Ek kon nie glo dat so iets waar is nie, maar tog verneem ons dat dit so is. En dan vra ek: wat is die status van ons tesouriers vandag? Watter aanmoediging is daar vir ’n jong ambisieuse man om opgelei te word en te gaan werk en deeltydse studie op te neem om ’n stadstesourier te word? Ek glo, Meneer die President, dat ons stadsraadslede wat hier teenwoordig is, baie notisie daarvan behoort te neem en terug te gaan na ons rade en ondersoek in te stel of ons nou regtig mense aanmoedig om ons professionele leiers van die toekoms te word.

Dan, Meneer die President, so een aanmerkinkie in verband met die vrees wat u uitgespreek het in verband met elektroniese berekenaars. U weet, Meneer die President, dit is ’n bekende feit, dat wanneer daar ’n nuwe masjien om werk te doen op die mark kom dan sê almal: , , 0 , nee, maar nou gaan die werkloosheidssyfer die lug in styg.” Ek wil u verseker, Meneer die President, dat van al die meganisasie wat ek gesien het, beide in plaaslike besture en in die sakewêreld, daardie masjiene glad nie mense uit werk sit nie. Die masjiene het die ondoeltreffende uitgeskakel maar het nie mense uit die werk gesit nie.


[ 8 0 ]

Hulle het nog meer werk gebring en dit moontlik gemaak vir die mense om grocer dinge te doen omdat hulle gouer inligting kan bekom. Die maatskappy waarvan ek aan die hoof staan is op die oomblik besig met die programmering van ’n elektroniese berekenaar, en op hierdie stadium blyk dit dat ek niemand sal hoef te vervang nie wat nou in ons diens is nie. A l wat sal gebeur is dat enkele vakatures nie gevul sal word wanneer van ons mense weggaan nie. Die aantal mense wat ek nou moet aanstel, om die inligting voor te berei, sal geweldig groot wees, maar ek sal my inligting so gou en op’ tyd kry dat ek baie meer doeltreffendheid in die besigheid sal kan bewerkstellig. En so gaan dit met al die masjiene. Ons moenie bang wees vir modernisasie nie. Ons moenie bang wees vir vooruitgang nie. Ons moet daarin deel.

Dan wil ek net graag met u saamstem op een besondere punt en dit is u gelukwensing aan ons redaksie van The South African Treasurer. Dit is vir my ’n baie groot genot om daardie tydskrif te lees en ek wil saam met u vir hulle baie hartlik geluk wens. Dankie, Meneer die President.

T he P resident : Ladies and gentlemen, the hour grows upon us and, with your permission, I w ill make some very brief replies to certain of the points which have been raised in the debate that followed the presentation of my Address.

I would like to thank Councillor Rutowitz for his very kind remarks and also for his particular interest in statistics. Obviously, that was one of my canvases which has a greater appeal than I thought, because when Mr. W igg spoke subsequently, he too made reference to statistics. I do not want to get fanatical on the subject, but it is obvious that I am in very good company because reference was made to the fact that Mr. Rode has been at this game for ten years. I certainly intend to elicit the support of local authorities and the Institute to try and produce some positive results in this direction.

Out of the several points raised by Mr. W igg , I took particular interest in his reference to the role of the C ity Treasurer. I do not know whether advancing years are upon us both and, as a consequence, we have become a little mature in our outlook, but what I would say is that I too believe that the example for better relationships between the departments must start at the level of the C ity Treasurer himself.

Mr. Gorven was kind enough to lay emphasis on the need for capital planning, and I was very pleased to find a subsequent confirmation from the floor that, irrespective of the size of the local authority, long term plan/ ning is absolutely essential. I was a little worried when he suggested that perhaps I belong to that group which was antagonistic to computers. I hasten to assure him, as he found out subsequently, that I am very enthu/ siastic about them and, in fact, I am what is now described as a cybernetician. Now in case some of you do not know what a cybernetician is, cybernetics is defined as the study of control and communication, mechanism in machines and living creatures. Now obviously it not only embraces machines, but it embraces city councillors as w ell; and I think if you read this paragraph with particular care you w ill agree that obviously all treasurers are cyber/ neticians because of their study of control and the application of mechanisms,


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not only in machines but in living creatures in the form of their city coun/ cillors. So I would like again to assure Mr. Gorven that I am on his side a hundred per cent.

Colonel W ood, from Pietermaritzburg, posed a real teaser, if I may say so, in wanting to know who was responsible for the initiation of a long term capital programme. Now, while I was scratching my head trying to find one of those — shall I say — tactful answers, he was followed by Councillor Mrs. W engel who, in my opinion, gave the perfect answer. If I may say so, I was most impressed with the lady councillor’s remarks and I too, from my own experience, feel that the initial onus is upon the technical and pro/ fessional officers of the local authority to co/ordinate at their level to produce something and then feed it into the particular committees of the Council itself. In this way, you get a co/ordination, and we must accept the fact that year after year a certain amount of review is essential against the back/ ground of available funds. A s I said before, I am most grateful to Councillor Mrs. W engel for supplying what I consider to be the complete answer to Colonel W ood on the subject, and I hope that Colonel W ood w ill himself agree that that is perhaps the answer.

W hen I come to the remarks made by Councillor de Kock, of Klerksdorp, on the question of computerisation, I can assure you Councillor de Kock w ill be speaking on this subject tomorrow, because computerisation is bound up very closely with Parkinson’s L aw . Therefore I felt a little dis/ tressed when he suggested that his experience might lead him to believe that there is not necessarily a reduction in establishment but a retention of establishment at its previous strength. I was very pleased indeed to hear a councillor lay emphasis on the part which local authorities themselves must play in making it possible for the members of their authority to qualify under the most practical and suitable methods possible. I emphasised that point in my Address and I do not apologise for coming back to it. I think that if the Institute is to prosper and we are to produce financial officers of the right calibre and standing, we need the assistance of local authorities in making available for them facilities under which they can enjoy their training, perhaps under better circumstances than is the case at the present time.

Thank you all very much indeed for what I can only describe as sweet tolerance. A s I said before, I set out with a few canvases and I abandoned some of them. I was very pleased to find that the canvas on statistics, for example, apparently was of interest to you. In the circumstances, may I thank you very much indeed for the way in which you have received my Address.

The Conference w ill adjourn until this afternoon.Thank you very much everybody.

Presidential A ddress—Discussion (continued)

[ 8 2 ]

First Day—Monday, 13th April, 1964.AFTERNOON SESSION.

T he P resident : Ladies and gentlemen, our speaker this afternoon is Dr- J- J- N. Cloete. Here again I have made it my business to find out whether Dr. Cloete was born in the Transvaal or not. I am very pleased to say that he was born in the Cape Province. It illustrates just again what remarkable Administrators and Professors they have in the Transvaal, but imported, o f course, from the other Provinces. I hope sooner or later to find one from Rhodesia too.

Before I ask Dr. Cloete to address you, I thought you might like to know a little o f the background o f what is obviously a very hard working doctor. I see from the notes that I have in front o f me that “ hy het op sestienjarige leeftyd tot die Departement van Pos en Telegraaf wese toegetree. H y was vir bykans sewentien jaar in die Staatsdiens werksaam.” Here is an example — and you do not often get them these days — o f a Professor who has had a considerable amount o f practical experience before he became a Doctor o f Philosophy.

Sy akademiese opleiding het hy aan die Universiteit van Pretoria ontvang, waar hy na die B. A dm in. Graad, die M .A dm in. Graad en die Doktor van Filosofie Graad in Publieke Administrasie met die proefskrif )5Die MunisL pale Bestuur en Administrasie van Pretoria tot 1908” behaal het. H y het reeds baie artikels in verskillende tydskrifte gepubliseer. H y het benewens sy proefskrif, wat gepubliseer is, 00k ’n boek oor die Munisipale ontwikkeling van Bedfordview geskryf. Tans het hy ’n boek met die titel „Sentrale, Provinsiale en Munisipale Instellings in Suid/Afrika” by die drukker. Hierdie boek behoort binne enkele weke beskikbaar te wees en sal vir munisipale raadslede en amptenare van veel waarde wees.

Dr. Cloete has also had the good fortune to travel in the United States o f Am erica, where again he made a practical study o f performance budgeting in such vast organisations as Chicago. You therefore have before you this afternoon a Doctor who has a considerable practical and real experience behind him in the subject about which he is to give you a lecture.

Dr. Cloete, would you mind taking the podium please?

D r . J . J . N. C loete (Senior Lecturer in Political Science and Public Administration, University o f Pretoria): Meneer die President, dames en here, ek weet nie hoekom ek so ongelukkig was om hierdie opdrag te kry om die besondere aangeleentheid met u te bespreek nie, en dit nog met bietjie min kennisgewing, daarom sal u vind dat hierdie dokument wat u voor u het maar nie groot in omvang is nie.

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BUDGETARY PRACTICES FOR LOCAL AUTHORITIES

T H E P U R P O S E S O F A B U D G E T

1. The word budget is used in a number o f senses in attempts to describe various and often quite different activities. Sometimes the words programme and forecast are used instead o f budget or estimates. Mostly, however, the word budget is used when reference is made to a statement o f expected revenue and/or expenditure for a particular ensuing period o f time. A budget is therefore also expected to be an estimate or a proposal for the future. The shortcoming o f this dictionary type o f explanation o f the word budget is that it gives no indication o f the complicated processes which are involved in the preparation, acceptance and execution o f a budget.

2. The term budget should be used in a much wider sense than the mere reference to a particular one o f the many documents obtained in the administrative process. For the purposes o f this paper the word budget will be used to describe a statement prepared prior to but for a specified period o f time to explain in financial and/or other quantitative terms the policy to be pursued during that period for the purpose o f attaining a declared objective.

3. I f the word budget is used in this wider sense it implies that there will be a series o f similar statements each o f which will be related to a definite period o f time — usually a financial year which could o f course differ from a calendar year. To serve as a useful statement for the purpose o f achieving the objectives o f a policy a budget should be —

(a) a forecast o f the expected results o f the activities to be undertaken;

(b) a programme or plan o f work based on the proposals and decisions o f the person or body responsible for the top^management o f the institu/ tion or organisational unit concerned;

( c) an authorisation for the raising o f revenue and/or for the expenditure o f funds; and

(d) a yardstick o f the expenditure which ought to be incurred or the revenue which ought to be raised i f the institution or organisational unit would be expected to function efficiently.

It will be observed that these objectives are not mutually exclusive because a budget should serve as many as possible o f them. Indeed, the aim should be to obtain a budget which will state clearly policy objectives (forecast); which will be an inventory o f the activities to be engaged in (programme or p lan); which convey authority for the execution o f the stated activities

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(authorisation); and which will serve as a control measure at all stages o f the administrative or executive process (yardstick).

4. Because the form and content o f a budgetary statement should largely be determined by the objectives which it should achieve, it is necessary to deal more fully with the aforementioned purposes o f a budget.

5. Forecast: It is the purpose o f every public authority to provide services or goods which will promote the general welfare o f the community. However, the general welfare is an intangible and shifting state o f affairs which can never be attained in full, but it is assumed that every budget will take the community a step nearer to the ever elusive end goal. Every annual budget then becomes a fresh forecast for action in the immediate future to advance the community a step forward on the road to the general welfare. The person or persons charged with the function o f top/management (in the case o f a public institution it is usually a body o f elected representatives) will have to take the necessary decisions about the action to be taken during every fiscal period to promote the general welfare. T o some extent these decisions will always be value judgments and/or even arbitrary rulings. However, everything possible should be done to provide for decisions based on factual information. The budget process can serve as a major tool to minimise the influence on decisions o f subjective considerations and to promote objectivity in decisioivmaking. But then the budget should provide for the presentation o f information in such a manner that it will militate against personal and institutional considerations when decisions are called for.

6. A wide forecast for action to promote the general welfare o f the community is commonly referred to as the policy which has been formulated and expressed by the public authority for a specified period o f time, e.g. a period between general elections. However, policy is a general long-term directive and usually it does not define closely a particular and immediate goal. Therefore, action within specified limits and for shorter periods must be forecast to obtain determinable results which would step by step lead up to the achievement o f the ultimate objectives o f the policy.

7. Public authorities usually have many more requests for services than they can possibly satisfy with the limited resources at their disposal. There/ fore, the budget o f a public institution should be regarded as a master/plan whereby the limited resources are allocated between the different activities to be financed from the central pool o f revenue. To obtain a budget which will promote the general welfare the competing claims o f the different activities must be weighed and all alternatives must be examined to decide upon those which will more effectively further the public interest i f all or part o f the limited resources are allocated to them.

Budgetary Practices for L ocal A uthorities (cont.)

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8. Because the simple criterion o f profitability, which is applied to determine success in the private sector, cannot be applied in the public sector the budgeting task in the latter sector becomes so much more difficult. The matter is complicated still further by the fact that a single public authority is usually required to render a multiplicity o f services. The task becomes more involved because there are no common criteria for determining the ultimate objective — the public interest — in respect o f the different services. In the end the elected representatives will be required to decide upon alternatives which they will consider to be o f the greatest advantage to the community. However, the decision-making task o f the elected representative can be lightened and rationalised to a large extent i f he can be provided with information on which action can be forecast. Information can o f course be classified and presented in different ways. Therefore, budgets which are statements o f information can also be prepared in a number o f ways. A s will be explained further on much attention has during recent years been given to performance budgeting because it promotes objective decisions about or forecasts o f activities to be undertaken to reach the goals set by the declared policy o f the public institution.

9. Programme1 or plan : The word plan is used here although its indiscriminate usage has made the word meaningless. The word programme is preferred, therefore, to refer to the work to be undertaken in connection with the activities which a public authority will provide for during a particular fiscal period. It can also be accepted that an objective budget requires programmes o f work on which it can be based. It is o f course unnecessary to set out the programmes o f work in detail in the final budgetary statement. However, i f a budget is not based on programmes o f work it is essential to provide other criteria to justify the estimated expenditure and then it becomes necessary to detail all sorts o f requirements or items o f expenditure in the budgetary statements. It may well be that the voluminous budget documents o f local authorities spending relatively small amounts o f money are the result o f the failure to estimate expenditure on the basis o f programmes o f work. The attention is then focused on things to be bought or paid for on a cash basis (accounting items) rather than on things to be done. The emphasis is placed on and the estimates o f expenditure are classified on objects to be purchased rather than on the purposes to be achieved.

10. Authorisation: A cardinal principle o f public finance is that revenue shall be obtained and expenditure incurred as authorised by the elected body concerned — Parliament on the central level, the provincial councils

1 Care must be exercised not to confuse the American word program with the English word programme. In the American text-books on budgetary practices the word program is used to describe or refer to the wider field of activities of an organisational unit, e.g. the Combat Operations of the American army. In the British text-books the words programme o f work are usually used to refer to a particular task, e.g. “repairs and maintenance of buildings” . In this paper the word programme is used in the sense of the English text-books.


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on the provincial level, and the city or other local councils on the municipal level. Unfortunately it is often forgotten that this constitutional arrangement is really much more than a measure to ensure that financial transactions conform to legal requirements and accounting rules or procedures. It is forgotten that the highest authority in financial matters is reserved for the elected body because that body must through its directives about the raising and expenditure o f public funds provide for the execution o f its declared policy to promote the public interest. The budget is merely a tool for attaining the objectives o f the policy. The decisions on budgetary issues should be seen against the background provided by policy decisions which could be made previously or when the budget is considered. By providing money for a particular programme o f work the policy-making authority in effect decides that action should be taken to reach the objectives o f its policy in that particular sphere or section o f its field o f operations.

1 1 . Strict control is also exercised in the public sector to ensure that funds are disbursed in accordance with the directives o f the elected body. But in this respect the principal control measure — the audit — is usually applied only to ensure that the legalities o f appropriations have been complied with. Little or no effort is made to establish whether the policy objectives o f the elected body have been pursued with the necessary energy, economy and efficiency. It would appear that the best procedure to obtain improvement in this direction would be to prepare the budget in such a manner that the authorisation would be clearly attached to and integrated with policy. The budget could then be based on programmes in such a manner that the performance standards expected are made known to all and sundry and that results can be evaluated in relation to the set standards.

12 . Yardstick: W hen a budget is prepared it must be assumed that a reasonable standard o f efficiency will be attained with the action taken in terms o f the authorisation provided. Efficiency will be attained i f there is a satisfactory relationship between the quantities o f manpower or energy and materials consumed and the amount o f goods or services produced. W hen the budget is prepared the quantities o f input and output must, therefore, be related in a direct and understandable manner. I f the budget is prepared in this manner it will also serve as a control measure or yardstick to determine efficiency and to evaluate results.

13 . The control aspect is o f such particular importance in the public sector because public institutions cannot apply the yardstick o f profitability to determine the extent o f their success or failure. Demand for goods or services in the private sector is dictated by market forces which are beyond the control o f the management o f the concern. Therefore, the budget o f a private undertaking can hardly serve as a yardstick and is primarily a forecast which will need to be adjusted in relation to market fluctuations. The


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budget and in effect the production policy will need to be changed com stantly and at short notice to keep in step with market fluctuations.

14. The budget for a public authority which usually is a noivtrading institution is, by contrast, much more o f a plan or programme o f work and approval for the expenditure o f fixed amounts o f money or manpower for stated purposes. The expenditure is dictated by the limited available resources and not by demand. The extent o f the services which will be rendered by a public institution is fixed by the amount available from a central pool o f revenue derived from taxation or restricted grants from other authorities. The amount o f money available for a particular period is usually fixed beforehand and the public authority will need to keep its spending pro-' gramme within the limits o f the fixed income.

15. The difficulty with spending programmes prepared to keep expends ture within fixed limits is to find criteria which can be applied to identify waste and extravagance. A s indicated above the accounts prepared to satisfy the requirements laid down by law and the auditors usually are o f no help in combating or pointing out waste and extravagance. Budgets prepared to keep expenditure within certain fixed limits usually omit to mention the cost o f the services or goods to be produced. The operating units or officials consequently carry on with their work and are not really concerned even i f the cost o f what they are doing should prove to be different from what was assumed when the budget was prepared. The omission o f unit costs is, therefore, a real shortcoming in public budgetary practices and the budgets fail to serve as yardsticks for the control o f performance standards. To compare performance with budget provisions it is essential that costing should be encouraged. W hen costs o f units o f work or jobs are available they can be compared with those o f the same service for pre vious and subsequent periods or with the unit and job costs o f other authors ties or institutions.

IM P R O V E D B U D G E T A R Y P R A C T I C E S

16. It would appear that local authorities use the budget largely as an instrument to fix rates and to put a ceiling on expenditure. The attention must, therefore, be focused on steps which will ensure that the budgetary system is made to serve all the potential purposes referred to above. In particular consideration must be given to developments which will ensure that the budget is related to non-ffinancial policy objectives or assumptions and end results. The budget should describe activities which will be under-- taken and should give an indication o f the energy or manpower, materials and other resources required to perform the activities decided upon.

1 7- L would be foolish to suggest that every one o f the large number o f public authorities should follow a particular budgetary system. Every


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authority or institution should devise its own budgetary system or could adapt one or other o f the known systems to serve its particular needs. L ike every other administrative device the budget with its related forms and pro' cedures should, however, be brought under review regularly.

1 8. W hile it is not intended to suggest a particular budgetary system for all local authorities a description will be attempted in the following paragraphs o f the system ofperformance budgeting adopted by a growing number o f cities in the United States o f America since W orld W ar II. It is claimed that this system will serve the purposes o f the budget referred to in the fore going paragraphs.

T H E P E R F O R M A N C E B U D G E T

19. A t the outset it must be stressed that no precise definition o f per formance budgeting can be given. However, the underlying notion o f performance budgeting is to budget and authorise funds for things to be done rather than for things to be bought. Money is provided for activities and functions rather than for purchases and payments. Money is voted for ends instead o f for means. This approach represents a radical departure from the general practice o f assuming a goal and then estimating the expenditure on personnel, materials and other matters for reaching that goal. The difference is not merely a matter o f technique or method, but represents a new way o f approach. The elected representatives as well as the officials must be made to think in different terms — they must be made to think o f goals to be accomplished rather than in terms o f items to be paid for.

20. Classification o f basic functions: A primary problem to be faced when it is decided to adopt a system o f performance budgeting is to obtain a classifv cation o f the basic functions o f the institution for which a budget must be prepared. Classifications and divisions o f work based upon identifiable functions, programmes, activities, projects or kinds o f work rather than upon organisational units and items o f expenditure should be undertaken. This classification must be embarked upon because, as stated above, with the performance budget the attention is focused upon the function or activity and the accomplishment o f the objective and not so much on personnel posts or expenditure on materials.

2 1 . It is true that with any budgetary system things or objects bought will enter into the picture at some stage. However, for the purpose o f performance budgeting objects or materials bought are viewed and classified in relation to a purpose or goal. Cement, for example, is viewed as a potential section o f a concrete building, street or other construction. Cement is seen as an ingredient which (with other building materials, the labour o f personnel and equipment) will be part o f a specific end product necessary for reaching the goals set by the policy or programme about which agreement had been


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reached. End products or things done could be streets built, tons of rubbish removed, beer brewed, water provided, or tickets issued for the violation of traffic regulations.

22. Because the things done by a public institution are always recorded, it is possible always to identify an end product for every activity o f such an institution. The problem is that the end product is sometimes quite meaning' less for the purpose o f measuring the accomplishment or necessity o f an activity especially in a value sense, e.g. the number o f animals handled at the pound. End products cannot be used to evaluate value judgments which are o f course mental processes made in the minds o f men and usually as part o f the political process. It will be foolish, therefore, to attempt to identify end products which can be used to measure, for example, “ better traffic control” , “ better police protection” , “ better health services” or “ better recreation services” . The aim should be to obtain classifications o f work which will provide information on end products in such a manner that it will show whether the services rendered are improving in relation to the costs. The classification o f functions or work on a performance basis should provide factual evidence on the performance standards — performance data should show the results or accomplishments o f the activities as well as their costs in money or manpower.

23. W ith the classification o f functions the usual approach is to proceed from the general to the specific. For example, in the City o f Los Angeles it was decided when performance budgeting was introduced after 1950, to budget for the following general functions for the city as a whole:

“10 General government 50 Cultural and recreational services20 Protection to persons and property 60 Employee pensions and retirement30 Health and sanitation 70 Bond redemption and interest40 Highways, bridges, and structures 80 Miscellaneous”

Each general function consisted o f a number o f sub'functions, e.g. “ 20 Protection to persons and property” consisted o f such sub'functions as “ fire protection, police protection, traffic engineering, and legal service” . The sub'functions were then linked to organisational units (departments and sub'departments or sections1) and broken down into activities and sub'activities as follows:

“21. Structural Regulation21.1 Building and Safety Department

21.10 Departmental Administration21.11 Building Permits and Inspections

21.no Administration21.111 Plan Checking

21.11$ Building Inspection21.1150 Administration21.1151 Inspections”

1 Because organisational units, departments or sections are usually created to provide for specific functions it should be a relatively simple matter to link functions or activities with organisational units.

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The four-digit titles are activities, and the five- and six-digit titles are subactivities. The sub-activities were defined as units or operations which constituted functional levels where adequate work measurement could be undertaken.

24. W hen the activity and sub-activity classifications had been developed it was decided after extensive study to measure performance in terms o f manhours per work unit. This aspect will be dealt with further in the following paragraphs.

25. It is also considered advisable to classify expenditure or budgetary accounts (a) by function, (b) by activity and organisational units, (c) by object (personnel, materials or other charges), and (d) by character (e.g. from revenue or capital funds). I f such a scheme o f classification is decided upon it could lead up to the undermentioned accounts —


F u n c tio n s O rga n isa t io n a l U n its— A ctiv it ie s

General Government and Administration

" i . Council2. Tow n Clerk3. Legal4. Personnel (Central personnel office'5. Finance6. Tow n Hall and Buildings7. Publicity8. Non-Department Expenses

F u n c tio n s O rga n isa t io n a l U n its— A c t i v i t i e s

Public Safety <j 9. Police (Traffic) .10 . Fire

Public W orks <j 1 1 . Parks and Cemeteries _ 12. Streets

Sanitation <f 13 . Rubbish Removal. 1 4 . Mosquito and Fly Eradication

Library 15 . Library

In the United States o f Am erica it is quite general practice to use the undermentioned headings for the classification o f expenditure by object:

A . Personal Services (e.g. salaries or wages, pension fund contributions and overtime).

B. Contractual Services (e.g. postage, telephone, publications, advertising, rental o f equipment, repair or maintenance o f equipment).

C . Commodities or Materials and Supplies (including stationery and office supplies).

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D . Permanent improvements or equipment (e.g. improvement o f buildings by for example the installation o f air conditioning).

E . Contingencies.I f the budgets for the expenditure from capital and revenue funds are combined a further title “ F. Capital Outlay (land, buildings and equipment)” could be added to the foregoing list. These items of “ object” expenditure would then be stated in respect o f each o f the fifteen abovementioned activities.

26. The Performance Unit: For the purposes o f performance budgeting it is necessary to state the objectives for which funds are required, to indicate the costs o f the programmes o f work to achieve the stated objectives, and to present quantitative data to measure the accomplishments, end products and the results o f each programme o f work. A s indicated above the end product cannot always serve as a significant measure o f the accomplishment o f the programme o f work. Fortunately end products can on the municipal level quite often be found to serve as significant and measurable end products. It is for example a relatively simple matter to ascertain the quantity or weight o f rubbish removed during a particular period. It should also be possible to determine the amount o f manpower devoted to rubbish removal. Therefore, in the case o f rubbish removal the end product could be used as the performance unit to forecast the expenditure for the next financial year, to prepare a programme o f work, and to evaluate the work performed.

27. The following table is an attempt to show how the classification o f functions can be linked with organisational units and how programmes o f work, performance data and expenditure on objects can be presented:

Number of Work Units


Organisational(End

Product)TotalCosts

Function: 10.00 Streets — — —

Programme: 10.10 Construction Department of the City — Rx.xxxEngineer

10.20 Lighting Electricity Department — Rx.xxx10.30 Traffic Control Traffic Department — Rx.xxx10.40 Maintenance Department of the City — Rx.xxx

EngineerPertormance 10.41 Streets cleaned (miles) — X Rx.xxx

10.42 Resurfaced (miles) — X Rx.xxx10.43 Inspections — — R xxx10.44 Bridge reconstruction — — R xxx10.45 Sidewalks repaired — X R xxx(yards)

Expenditure A . Personal services R x,xxxon objects: B. Contractual services R x,xxx

C . Commodities R x,xxxD. Permanent improvements —E. Contingencies R x,xxx

Totals Rxx.xxx Rxx.xxx[ 9 2 ]

The total expenditure on objects will equal the total costs. O f course the statement will in practice be prepared in much greater detail in such a manner that performance data will be included under each programme, and expenditure on objects will be stated under each performance unit.

28. The table furnished in the foregoing paragraph also illustrates, as already indicated that some end products are not suitable or significant units o f measurement. It is assumed that street inspections over a period are not sufficiently homogeneous to be used as significant end products — they can be inspections o f streets constructed, cleaned or resurfaced. In the same way it is also assumed that the end products in respect o f “ Bridges reconstructed” (10.44) are not sufficiently homogeneous to serve as performance units. These performance units where the end products cannot serve as significant units o f measurement (because they are not sufficiently definable or homogeneous) present a real problem. Every effort should be made, however, to present such activities or performance units in such a manner that their costs can be compared on an annual or other basis.

29. In practice the officials in charge o f the various functional organisational units (departments or sections) should be the persons to decide about the end products which should serve as the more suitable units o f measurement.

30. The cost factor: For the purposes o f performance budgeting it is essential that the costs o f activities on end products should be determined. The traditional approach is to determine the money cost o f work units. A s indicated above, however, Los Angeles decided upon man-hours per work unit as the basis for measuring performance. This approach was decided upon because it is much more simple to calculate the number o f man-hours per work unit. Fluctuations in prices for objects also make unit costs unreliable for purposes o f comparison. The greatest part o f unit costs is in any case personnel costs.

3 1. It is usually assumed that complicated costing techniques should be employed to obtain for the purposes o f performance budgeting the most refined unit costs. This is a false assumption. Average figures o f the full costs o f end products which can be used for purposes o f comparison from time to time and from place to place should meet requirements. It can be stressed that when it is decided to introduce performance budgeting the initiative should to a large extent be taken by the functional supervisors who should, however, be assisted and advised where possible by the officials responsible for preparing budget summaries and accounts on the highest level. Performance budgeting need also not be introduced at the same time for all sections or departments o f a local authority. There should be no objection to the introduction o f performance budgeting by some departments while others proceed with their traditional budgetary practices.


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32. Practical application: It will be appreciated that it is completely impossible for an individual, and at that an outsider, to suggest in detail the manner in which performance budgeting should be adopted by any one or other local authority. However, an attempt has been made to draw up samples o f the types o f documents which would serve the purposes o f performance budgeting — see Annexures A , B and C to this paper. It is suggested that the Institute o f Municipal Treasurers and Accountants should appoint a committee out o f its own members and other interested persons to pursue the question o f the introduction o f the principles o f performance budgeting in South A frica. Such a committee can then pre' pare a suitable budget manual in which the practical application o f per' formance budgeting is explained in detail.

E S S E N T I A L R E Q U IR E M E N T S F O R A B U D G E T

33. A budget should consist o f three main parts. Part One should be an explanatory statement to the legislative body and should be accompanied by a summary o f the budget. In the explanatory statement or message the assumptions on which the budget was prepared should, for example, be stated. Increases or decreases in the services provided for should also be commented upon.

34. The summary o f the budget which should accompany the afore' mentioned statement should be very brief and i f possible presented on one page. The summary should indicate the expenditure by fund, function and organisational unit (department or section). It should also compare the estimated expenditure with that voted for the current fiscal period.

35. Part T w o should be a document in which the organisational units (departments or sections) and their functions are described. The manner in which this document is prepared will depend upon the manner in which the activities are related to expenditure. Under a system o f performance budgeting the activities or services w ill be linked with expenditure on a unit cost basis — or on a man/hour basis. Separate sheets could be used for separate functions or even activities and suNactivities which could be listed under titles explanatory o f the function, activity or sub'activity — see Annexure A to this paper. It is desirable that in these data sheets the full operating costs should be shown. Details about the personnel to be engaged for the activities should also be shown. It would appear that quite a general weakness o f the present budgetary documents o f South African local authorities is that personnel details are not shown in respect o f each organisa' tional unit or function.

36. Part Three o f the budget should show details o f the programmes to be paid for from capital funds. The estimates for each programme or pro'


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ject should show its total cost and should indicate the allotments for pre/ ceding fiscal periods as well as the amounts proposed for the period for which the budget is prepared and for any future periods.

C O N C L U S IO N

37- In conclusion it must again be stressed that the budget should be regarded as a tool to achieve administrative objectives. Therefore, the aim should always be to make the budget a more useful instrument. It would appear that it has been the trend in South A frica to load budgets with all sorts of detailed information with the result that they have developed into voluminous documents which are understood by only a small number of expert officials. It is doubtful whether the councillors of even small towns are able to make sense out of the budgetary documents placed before them during recent years. It would appear then that it is urgently necessary to reform the budgetary practices of local authorities in South Africa. If properly handled the budget can become a major instrument to promote efficiency in local government and administration, but then much more attention must be given to the matter than an introductory lecture at an annual conference of interested persons.

Meneer die President, ek hoop dat ek hierdie uiteensetting verstaanbaar gemaak het en bedank u vir die geleentheid wat ek gehad het om hierdie vergadering toe te spreek.


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Year/Jaar 1963-64 DEPARTMENT: PARKS AND CEMETERIESAFDELING: PARKE EN BEGRAAFPLASE

Vote No./Pos Nr. 71 Cemetery No./Begraafplaas Nr. 2

Sub-Vote/Subhoof 2 ESTIMATED EXPENDITURE AND PERFORMANCE DATABERAAMDE UITGAWE EN UITVOERINGSGEGEWENS


ANNEXURE A

PERSONNELPERSONEEL OTHER OPERATING COSTS

ANDER U1TVOERINGSKOSTESalary or Total Salaries Account

Post NumberWage and Wages No.

Salaris of Man-hours Totaal van Reken-Betrekking Getal Loon Werkure Salarisse Nr. Onderwerp Bedragen Lone

S uperin tenden t........................ 1R

3,000 2,288R

3,000 20 Stationery and Postal Services . . . .R50

Assistant Superintendent Assistent Superintendent C le r k .........................................

1

2

2,600

2 ,000

2,288

4,576

2,600

4,000

30

40

Skryfbehoeftes en Pos dienste Improvements and Maintenance Verbeteringe en Onderhoud Capital Works — Redemption and Interest

420

300Grave Digger..............................Grafgrawer

1 1,600 2,288 1,600 50Kapitaalwerke — Aflossing en Rente Stores ........................................................... 270

Tractor D r i v e r ........................TrekkerdrywerF o rem an ....................................

1

4

1,400

1,600

2,288

9,152

1,400

5,600

60 Contingencies...............................................Bykomstighede

100

SpanbaasG ardener.................................... 1 1,800 2,288 1,800TuinierBantu Labourers . . . . 77 400—600 176,176 36,000Bantoe-arbeiders

TOTALS....................................TOTALE

88 201,344 56,000 Total of other operating costs . . . . Totaal van ander uitvoeringskoste

1,140

PERFORMANCE DATA UITVOERINGSGEGEWENS

Activity Work Units Man-hours per Work Unit Average Cost per Work UnitWerksaamheid Werkeenhede Werkure per Werkeenheid Gemiddelde Koste per Werkeenheid

Graves prepared Grafte voorberei

100 201.34R

56.00Graves maintained Grafte onderhou

6 ,20 0 25.97 7.23Vacant graves Vakante grrfte

1,000 20.134 5.600

REMARKSOPMERK1NGS

CAPITAL OUTLAY KAPITAALBELEGGING

Account No. Rekening Nr.

ObjectOnderwerp

AmountBedrag

R200 Land

GrandXX,XXX

300 Machinery . Masjinerie

x,xxx

400 Buildings . Geboue

x,xxx

TOTAL. . . xx,xxxTOTAAL

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Vote No./Pos Nr. 71

Sub-Vote/Subhoof 2

DEPARTMENT: PARKS AND CEMETERIES AFDELING: PARKE EN BEGRAAFPLASE

Cemetery No. 2 (5 Morgen—7,200 graves)Begraafplaas Nr. 2 (5 Morge—7,200 grafte)

DISTRIBUTION OF AMOUNTS VOTED BY ACTIVITIES VERSPREIDING VOLGENS WERKSAAMHEDE VAN BEDRAE GESTEM

ANNEXURE B

ActivityWerksaamheid

YearJaar

Administration (Head Office) Administrasie (Hoofkantoor)

PersonnelPersoneel

Stationery and Postal Services Skryfbehoeftes en Posdienste

Improvements and Maintenance

Verbeteringe en Onderhoud

Capital Works— Redemption and

InterestKapitaalwerke—

Aflossing en Rente

StoresVoorrade

ContingenciesBykomstighede

Total Operating Costs

Totaal Uitvoer- ingskoste

CapitalKapitaal

Total Amount Voted

Totale Bedrag Gestem

EuropeanBlanke

BantuBantoe

NumberGetal

AmountBedrag

NumberGetal

AmountBedrag

R R R R R R R R R R R

Preparation of Graves . 1961-62 500 1 1,200 15 6 ,00 0 30 400 300 250 100 8,780 — 8,7801962-63 510 1 1,500 15 6,800 40 410 300 260 100 9,920 — 9,920

Voorbereiding van Grafte . 1963-64 520 1 .1 2 ,200 15.4 7,200 50 420 300 270 100 11,060 11,060

Maintenance of Graves . . 1961-62 4,000 8 9,600 52.5 21 ,0 00 240 3,200 2,400 2 ,000 800 43,240 43,2401962-63 4,080 8 12 ,000 52.5 23,800 320 3,280 2,400 2,080 800 48,760 — 48,760

Onderhoud van Grafte . . 1963-64 4,160 8 .8 15,600 53.9 25,200 400 3,360 2,400 2,160 800 54,080 54,080

Vacant Graves........................ . 1961-62 500 1 1,200 7.5 3,000 30 400 300 250 100 5,780 5,7801962-63 510 1 1,500 7.5 3,400 40 410 300 260 100 6,520 — 6,520

Vakante Grafte . . . . . 1963-64 520 1 .1 2 ,20 0 7.7 3,600 50 420 300 270 100 7,460 7,460


Vote No./Pos Nr. 71

Sub-Vote/Subhoof 2

DEPARTMENT: PARKS AND CEMETERIES AFDELING: PARKE EN BEGRAAFPLASE

Cemetery No./Begraafplaas Nr. 2

PERFORMANCE DATA UITVOERINGSGEGEWENS

ANNEXURE C

ActivityWerksaamheid

Administration (Head Office) Administrasie (Hoofkantoor) European Personnel1 . . . . Blanke Personeel

Bantu Personnel2 ........................Bantoepersoneel

Stationery and Postal Services . Skryfbehoeftes en Posdienste Improvements and Maintenance Verbeteringe en Onderhoud Capital Works, Redemption and

Interest . . . . . .Kapitaalwerke, Aflossing en RenteStores .........................................VoorradeContingencies . . . .Bykomstighede

Graves Prepared . Grafte Voorberei Graves Maintained Grafte Onderhou Vacant Graves. Vakante Grafte

Work Units Werkeenhede

Man-hoursWerkure

Man-hoursWerkure

Man-hours per Work Unit Werkure per Werkeenheid

Operating Costs Uitvoeringskoste

ActualWerklike

EstimatedBegroot

NumberGetal

1961-62 1962-63 1963-64 1961-62 1962-63 1963-64

TotalTotaal

Average per Work Unit Gemid. per Werkeenheid

1961-62 1962-63 1963-64 1961-62 1962-63 1963-641961-62 1962-63 1963-64 1961-62 1962-63 1963-64

R R R R R R

5,000 5,100 5,200

10 10 11 440 440 484 .440 .440 .484 12 ,000 15,000 20 ,000.059 .058 .062.037 .04 .048

75 75 77 3,300 3,300 3,388 6 .6 6 .6 6.776 30,000 34,000 36,000.385 .379 .383.29 .3 .338

300 400 500

4,000 4,100 4,200

3,000 3,000 3,000

2,500 2,600 2,700

1,000 1,000 1 ,000

Total/ Totaal 57,800 65,200 72,600

57.8 65.2 72.6100 100 100 ( 1 0 %) (1 0 %) (1 0 %)

7.707 8.558 9.376 ,0 0 0 6 ,10 0 6 ,200 (80%) (80%) (80%)

4.817 5.927 7.261 ,20 0 1,100 1 ,000 ( 1 0%) (1 0 %) (1 0 %)

‘Man-hours allocated as follows: Werkure soos volg toegeken:

2Man-hours allocated as follows: Werkure soos volg toegeken:

raves prepared Grafte voorberei3raves prepared 3rafte voorberei

10% Graves Maintained 80/; Grafte onderhou

20% Graves maintained 70/ Grafte onderhou

and Vacant graves 10% en Vakante grafte

, and Vacant graves 10% en Vakante grafte

D iscussion

D ie P resident : Dames en here, die eerste spreker op hierdie referaat is Meneer Rode, die Stadstesourier van Pretoria.

Mr. Rode, as well as being a Fellow o f the Institute, has been one o f its most staunch supporters. In asking him to speak this afternoon, I had in mind that it was a case o f getting the sitting member, a Pretorian, to catch a Pretorian. Needless to say, I find that Mr. Rode too was born outside the Transvaal, but I w ill not press the point any further. I now ask Mr. Rode to be the first speaker.

Meneer H. Rode (Stadstesourier, Pretoria): Meneer die President, dames en here, ja ek moet bieg — ofis dit beken — ek is ook buitekant die Transvaal gebore, naamlik in die Kaap, en ek is trots daarop.

Meneer die President, blykbaar het dit gebruiklik geword om by ons kongresse ’n referaat te kry in verband met begrotings, begrotingspraktyke, kosteberekening en so voorts. Dit is goed so, omdat dit so ’n belangrike aspek in ons lewe is. Vandag het Dr. Cloete egter ’n nuwe gedagte in ons midde gelê, naamlik dat die begroting weggeneem moet word van die Tesourier en oorgeplaas moet word na die hoof beampte. As ’n tesourier wat nagte met so ’n begroting worstel sou ek dit hartlik verwelkom. Of dit egter baie doeltreffend sal wees weet ek werklik nie omdat die inligting waarop ’n begroting gebaseer is tog van die tesourier se syfers kom. In elk geval ek loop my woorde vooruit.

Dit is ook gebruiklik, Meneer die President, om ’n dosent van een of ander Universiteit te kry om by ons kongresse ’n referaat te lewer. Ek stel dit baie op prys dat u vandag ’n dosent van die Universiteit Pretoria gekies het om vir ons die toespraak te lewer, te meer omdat Dr. Cloete vyf en vyftig jaar lank met die stadsraad deurmekaar was, want soos u tereg gesê het, het hy ’n proefskrif geskrywe „Die Munisipale Bestuur en Administrasie van Pretoria tot 1910”.

Meneer die President, daar is so baie punte in Dr. Cloete se referaat waarmee ek wil saamstem, maar dit help nie dat ek hulle onderstreep en aandag op hulle vestig nie. Ek wil liewers die paar punte aanhaal waarmee ek nie saamstem nie, aangesien dit miskien tot bespreking kan lei. Miskien sal u glad nie met my saamstem nie maar dan het u daaroor gedink en kan u vir my sê: „Nee, ek stem glad nie met u saam nie. Ek stem met Dr. Cloete geheel en al saam.”

Nou die eerste item waarmee ek nie saamstem nie, is Dr. Cloete se gedagtes in verband met die verskil tussen fiskale en administratiewe begrotings. Per slot van sake is ’n begroting tog hoofsaaklik ’n magtiging om geld uit te gee. U mag nie geld uitgee tensy daarvoor magtiging is nie. Dit is die belangrikste aspek van ’n begroting. U veronderstel dat u waarde kry vir die geld wat u gestem het, maar dit is ’n ander saak. A l kry u ook die beste waarde en u het u pos oorskry, dan is daar moeilikheid, moeilikheid van die tesourier, moeilikheid van die raad en moeilikheid van die ouditeure.

Dit laat my dink aan ’n geval van ’n man wat ’n rukkie tevore hoof van ’n departement geword het en nie eintlik geweet hoe om die sakie te benader nie, en veral die opstel van die begroting. Toe vra hy iemand: „Nou, maar sê vir my, hoe moet ek my begroting opstel’” Die antwoord wat hy gekry het was, „Man, vat tog net laaste jaar se syfers, kyk na hulle, volg hulle en tel hier ’n bietjie by en trek daar ’n bietjie af.” Nou, ek is seker dat Dr. Cloete glad nie daarmee sal saamstem nie, maar is dit inderdaad so verkeerd om so te maak’ Is dit so verkeerd aangesien naasteby sewentig persent van ’n plaaslike owerheid se uitgawe vaste en konstante uitgawes is! Uitgawes aan salarisse, lone, pensioen- fondsbydraes, rente, delging en hernuwingsgelde maak sewentig persent van jou begroting uit. As jy dan verlede jaar se syfers neem en aansuiwer om voorsiening te maak vir salarisverhogings wat goedr gekeur is, addisionele personeel wat aangeneem sal word, en die rente, delging en hernuwing van die lenings wat u aangegaan het, dan behoort u naastenby op sewentig persent van die totale uitgawe korrek te wees. Die ander dertig persent moet dan natuurlik noukeurig nagegaan word.


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Die volgende item wat ek wil behandel is die omvang van die begroting. As u na paragraaf sestien van die referaat kyk, sal u oplet dat Dr. Cloete in die middel daarvan sê: „In die besonder behoort daar gestreef te word om die begroting so te ontwikkel dat dit verband met die nie-finansiele beleids- doelstellinge of /veronderstdlings en eindresultate sal hou.” En dan in paragraaf sewentien praat hy van die reusagtige groot begroting en in sy toeligting het hy dit herhaal.

Nou, Meneer die President, ek dink daar is ’n verskil in die manier waarop plaaslike owerhede hulle begrotings opstel en die waarop byvoorbeeld die Poskantoor se begroting opgestel word. Dr. Cloete het ons vertel dat toe hy met die Poskantoor se begroting gemoeid was, hy ’n begroting op ses velle kon opstel terwyl die van ’n plaaslike bestuur, naamlik Pretoria, meer as twee honderd velle beslaan. Die verskil lê daarin dat die Poskantoor waarskynlik eenvoudig voorsiening gemaak vir groot onge/ spesifiseerde bedrae. In die staatsdiens word die beginsel van virement gebruik, dit wil sê dat .as daar n besparing op een pos is mag dit op n ander pos uitgegee word. Onder plaaslike owerhede weet ek

nie van n geval waar dit toegelaat word nie. Plaaslike owerhede maak voorsiening vir spesifieke uit/ gawes en enige surplus wat op daardie spesifieke voorsiening voorkom mag nie gebruik word vir ’n ander doel nie sonder toestemming van die raad nie. Ek dink dit is die groot verskil tussen die twee stelsels.

Dan weer in verband met die oorplasing van die begrotingsfunksie van die tesourier na die hoof/ beampte. Soos ek netnou gesê het, ek sou dit verwelkom omdat dit vir my dan baie tyd sou bespaar en ook vir my amptenare, maar waar sewentig persent van jou uitgawe staties is, is die enigste manier om te bepaal hoeveel voorsien moet word om terug te gaan op die vorige jaar se syfers. Ek dink, Meneer die President, dat dit ons nie baie sou help nie.

Meneer die President, omtrent gemiddelde syfers wat Dr. Cloete in paragraaf 31 noem wil ek met horn saamstem. Ons tesouriers is dikwels te puntenerig oor klein syfertjies, oor presiese korrektheid, met die gevolg dat ons syfers te laat beskikbaar is. Ek onthou nog baie goed toe ek jare gelede ’n inspek/ teur vir die Koringraad was, was ek een dag by ’n sekere meule en daar wou die bestuurder weet hoeveel koring daar voorhande was. Hy het toe sy rekenmeester, ’n uiters bekwame rekenmeester, laat r°ep en gevra: „Sê vir my, hoeveel koring het ons nou in voorraad.” Die rekenmeester het vir hom gesê: „Meneer, ek kan nie nou sê nie, maar ek kan in my boeke naslaan. Die jongste syfer wat ek het is omtrent ses weke oud.” Die Bestuurder sê toe vir die rekenmeester: „Nee, dit is goed, dankie” en aan my: ,,Syfers korrek tot die pond, ses weke oud, is vir my nutteloos.” Hy haal toe uit sy laai ’n klein boekie en daaruit kon hy vir my binne ’n honderd pond sê hoeveel koring daar in voorraad was. ’n Syfer betyds is meer werd as ’n korrekte syfer wat jare laat is.

Meneer die President, ek kom nou by klousules n en 15 van die referaat. In klousule 15 sê Dr. Cloete, „Soos reeds hierbo vermeld is die wyse waarop die rekeninge opgestel word om aan wet/ vereistes te voldoen en die van die ouditeure meesal van weinig hulp om buitensporigheid en ver/ kwisting te bestry of aan die lig te bring,” en dan in klousule n : „Maar in hierdie verband word die hoofbeheermaatreël die oudit — gewoonlik slegs op die wetlike vereistes van bestedings toegespits. Weinig of seifs geen poging word aangewend om vas te stel of die beleidsdoelstellings van die verkose liggaam met die nodige ywer, spaarsaamheid en doeltreffendheid nagestreef is nie.” Meneer die Presi/ dent, ek is daar ook eens met Dr. Cloete, maar ek wil n bietjie verder gaan. Ek wil die vraag vra, „behoort ons nie soos in die Parlement en in die provinsiale rade ’n gekose komitee op geldsake te hê nie? ’n Gekose komitee van raadslede wat nie lede van die bestuurskomitee is nie om die aspekte wat Dr. Cloete genoem het na te gaan. Tesouriers en raadslede sal nie daarvan hou me maar ek stel tog nog die vraag: Is dit nie nodig nie?

Ten slotte, Meneer die President, my hartlike dank aan Dr. Cloete vir sy insiggewende referaat, en die interessante manier waarop hy dit gelewer het. Baie dankie.

T he P resident : Ladies and gentlemen, obviously the C ity Treasurer o f Pretoria is in a fighting mood this afternoon. W e now adjourn for tea. Thank you.

T he P resident : Ladies and gentlemen, before we recommence battle, I have several announcements to make. I hope these announcements will

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not have the effect o f shortening what is obviously a most interesting and provocative debate.

The next speaker on this paper is Mr. Cowden. There is much that could be said about Mr. Cowden, but I will leave it unsaid. You all know him. He is an extremely active worker in the field o f local government and I now ask him to take the podium please.

Mr. J. W . C owden (Principal Officer (Financial), Springs): Mr. President, I am very glad you have not made any enquiries about where I was born. You may be surprised.

Meneer die Voorsitter, dit is vir my ’n besondere groot voorreg om iets te sê oor Dr. Cloete se referaat wat hy vandag gelewer het. Die referaat is vir my besonder interessant en ek is seker dat beide amptenare en raadslede in die toekoms daarna sal verwys.

Dit word dikwels beweer dat waar die winsmotief afwesig is eenheidskoste nie van veel belang is nie. Myns insiens is dit verkeerd en Dr. Cloete het gelukkig ’n baie duidelike en indrukwekkende beskrywing gegee van die praktyk in die Verenigde State van Amerika. Na my mening is die belang' rikste punt van Dr. Cloete se referaat in paragraaf 31 op bladsy 12, ja, dit begin op bladsy n . „Daar behoort geen beswaar daarteen te wees dat die taakstellingsbegroting vir sommige afdelings ingevoer word nie, terwyl die ander nog met hulle tradisionele begrotingspraktyke voortgaan.” In die verlede, toe ons die instelling van ’n taakstellingbegroting oorweeg het, is dit gewoonlik afgekeur omdat die doelmatigheid van die besteding nie gemeet kan word nie. Ek dink ons moet dit aanvaar dat sekere administratiewe, tegniese of raadgewende dienste nie op hierdie basis gemeet kan word nie. Ons bepaal tog nie die doeltreffendheid van die brandweerstasie volgens die brande wat uitgeblus is, of dié van die interne ouditeure volgens die getal diewe wat ontdek is nie. Ek is van mening dat die sogenaamde vaste begroting, of geldelike begroting, of fiskale begroting altyd met ons sal bly ten spyte van al die bewerings wat hier gemaak is omtrent taakstellings. Nietemin is ek oortuig daarvan dat die bewerings wat Dr. Cloete hier gemaak het baie belangrik is en dat daar ’n baie wye veld is waar ons kan optree.

Mr. President, I think it would be wrong to assume, as Dr. Cloete himself said, that this paper of his represents a know-how or a procedure manual for installing a system of performance, and I think it would be a grave error for any treasurer or councillor to go away from here and believe that what has been laid out here could be applied. Dr. Cloete, I am sure, himself accepts that this is a paper on principles, a very important one, but before a system can be installed a very great deal of analysis has to be undertaken. When I read about the Los Angeles system some years ago, I noticed myself that the first one who prepared the details of this was called the Chief Administrator of Analysis. We have not got that position in our grading scheme as far as I know. We have got many other administra' tive officers, but this was a Chief Administrative Analyst, who prepared all the statistics which are required for the installation of a system of performance budgeting, and those statistics are as important as the financial details themselves. There is no need to remind you what the effect would be on the finan' cial figures if your statistics about the number of graves dug or the number of books issued are wrong or full of errors, and here I agree entirely with what Mr. Rode said that if we build up statistics, they must be statistics which you can use and not statistics which are completely out of date or which are prepared in such a way that they cannot be readily used. I remember a case many years ago in a large city where, at a particular committee meeting, an argument arose between the Treasurer and the Engineer about costs. The Engineer said: “It is unfortunate; I can give you no costs because I get no details from the Treasurer”, whereupon the Treasurer came back to the following meeting and stated that he had checked up on this item and had discovered that the Engineer had all the costs he had wanted for the last ten years, but they had remained in the envelopes unopened in his department. That was not the last word because the Engineer said: “Well, who would want those costs anyway; you do not know what they mean, and you have got to employ a large administrative staff to analyse them”. I agree with Mr. Rode that statistics, when they are compiled, must be useful and they must be compiled in such a way that they are used. There is nothing more frustrating than to impose upon departments administrative work which has no end result and where the figures are merely filed away.

I would, therefore, like to issue a warning that before any system of performance budgeting is in ' stalled, there must be a complete basis of adequate statistics set up in all the departments. In Springs

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we tried several years ago to enlarge the estimate on this basis, and we appealed to departments to show against an item like native wages, the number of man hours per year and so on, but it became obvious that in early stages you just cannot do that if you rely on the departmental heads, who are appointed more for technical competence than for administrative efficiency, and here you might have to come back to Dr. Cloete’s idea that you must have a central administrative unit to perform all that work for you.

I also would like to agree with another of Mr. Rode’s remarks where he mentions that the large size of the estimates which are prepared by local authorities is no disadvantage. Obviously, the estimates as they are prepared by local authorities are a control medium. It has never been thought that the large volume of estimates prepared by local authorities is used in detail by the councillors who attend the final Council meeting to pass the budget. Summaries are made, a budget speech is prepared where all the main points are highlighted, and the elected representatives are placed in a position, by means of summaries, of knowing what the financial position of a town is; but here I would agree with Dr. Cloete that those summaries could be completely enlightened or further enlightened by the introduction of a performance standard.

The next point I want to make is the one also mentioned by Mr. Rode, as to who should prepare the budget. This, of course, is a very old question in public administration. It has been done by the Treasurer, and I think many Treasurers here will be found to be only too willing to give it up if the Town Clerk or someone else would take it over, as Mr. Rode said. That is not the important point. The important point is that you have to decide first of all under what organisation or type you are operating before you can actually decide who should prepare the budget. It seems to me to be quite obvious that if you have a system such as operates in the United States of America with a City Manager, the chief executive officer must obviously take a very strong interest in the budget, even if he does not prepare the main detail himself for submission to the legislative body. Where you have that system, I do not think there can be any objection to creating some of the stranger posts they have in the United States of America like budget directors, directors of finance and a whole lot of other people who are there placed to assist the chief executive officer in the important task of preparing the budget. That is a budget, of course, looked at from the point of view of a policy instrument, and it is a policy instrument of the very highest order. I do not think one can generalise, as Dr. Cloete has done, and say that it would be a good thing to set up a separate budgetary unit to assist the chief administrative officer, because you already have a council and a finance committee, and the system has been built up that if you have a finance committee to prepare the budget for the Council you have a chief financial officer, who is not only the paymaster and collector of income but he also prepares the budget. I would say that as long as that type of organisation remains, the chief financial officer would continue to prepare the budget and give his advice direct to the finance committee; but I come back to the point that if you do change the organisation, as has been done in other countries and in the Transvaal, then I can only agree with Dr. Cloete that a different set of arrangements might have to be made.

Mr. President, those are the only comments I have. This has been a most interesting paper and I would like to close by thanking Dr. Cloete very much.

T he P resident : Thank you very much, Mr. Cowden. The next speaker on this paper is Major H . C . Mooney, the Deputy Secretary o f the Local Health Commission, Natal. Major Mooney please.

Major H. C . Mooney (Deputy Secretary, Local Health Commission, Natal): Mr. President, ladies and gentlemen, I wish to join the previous two speakers in their tributes to Dr. Cloete for his most informative and thought provoking paper. We are indeed indebted to Dr. Cloete for the very interesting, concise and straightforward approach that he has made to this important controversial and evergreen subject of budgetary practices.

I also wish to thank you, Mr. President, for the opportunity you have afforded me, as a spokesman of my organisation, the Local Health Commission, Natal, to partake in this discussion. I know it was in your mind to add to the interest of the discussion by calling on a representative of a body such as mine, which does not strictly follow the traditional local authority’s pattern. I

I must point out that the Local Health Commission is a centralised body entrusted by the Natal Provincial Administration with the control and administration of twenty-six isolated and widely

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spread public health areas, all of which, with one exception, are sub-economic and fairly heavily subsidised units, and it is therefore essentially a very different kettle of fish from the orthodox local authority that has to pay its own way.

The Commission’s subsistence is derived mainly from the substantial annual revenue grant made by the Natal Provincial Administration, its foster parents, and this grant is at present equivalent to approximately sixty per cent of the total annual revenue expenditure.

I feel that I should mention that the commission is a comparatively small organisation with a small complement of permanent staff. My reason for drawing attention to this — and this may sound like accounting heresy — is that we do not have the same facilities or necessity to adopt as elaborate and detailed procedure as would be the case in the larger orthodox local authorities, which are not in the fortunate position of being able to call upon a benevolent Provincial Administration to subsidise any heavy deficits.

In paragraph 3 of Dr. Cloete’s paper, he crisply defines the four main essential purposes of an effect tive budget. These purposes cannot be overlooked by any efficient body, however small. I read with great interest the examples and explanations given by Dr. Cloete of the very precise and detailed mecha- nics of some of the budget makers adopted by our American friends. They admittedly provide a suitable target to be aimed at to achieve a more exact diagnosis of the problem. Such treatment is, from my limited practical experience, characteristic of the American tendency to possibly over indulge in the degrees of analysis that they all too frequently undertake.

While I concede that it is highly desirable to have some systematic procedure for building up the budgetary picture, I submit that in the smaller local authorities the adoption of more simplified and less precise methods probably meets the requirements of such bodies more than adequately. The greatest benefits of the more elaborate procedures undoubtedly accrue to those local authorities which provide a number of trading undertakings and services designed to be run on a strictly self supporting basis.

The Local Health Commission is not such a body, as all of the services it provides — mainly water supplies, sanitation and refuse removal schemes — are to varying degrees fairly heavily subsidised, and the considerably high proportion of its overall revenue expenditure covers the costs of general administration overheads. While the degree of detail employed in the actual framing of a budget will inevitably vary in each local authority, I do feel that there is a growing tendency to over-elaboradon and the provision of much too much detail in the actual form of the presentation of such estimates and budgets. Any elaboration should in general be confined to one’s working papers and any tern dency for including multifarious details in the printed documents should preferably be avoided.

Within the last two years, the Provincial Execudve Committee in the Natal Provincial Administra- don have found reason to comment on what they consider an excessive amount of detail provided in the Commission’s estimates, as tabled in the Provincial Council. While appreciating that the estimates are not — as Dr. Cloete has made quite clear — designed to fulfil only one purpose and must necessarily also satisfy the needs of many bodies and officials at various levels, the Provincial Council’s needs have been satisfactorily met by providing its members with only an abridged summary of its revenue estimates. In the above respect, I fully endorse the trite remark made by Dr. Cloete in paragraph 37 of his paper, in which he states that it is doubtful whether the councillors of even small towns are able to make sense out of some of the budgetary documents placed before them.

This problem, then, resolves itself into a judicious assessment of the amount of information that should be supplied to satisfy the needs of interested parties. On this score of providing a satisfactory answer, I can only say that we have, of course, to try a little bit harder to satisfy, in our dealings with Provincial and Town Councillors and similar dignitaries, and the general public.

T h e P r e s i d e n t : Thank you very much, Major Mooney. The paper is now open for general discussion.

Professor J. A . C illiers (Professor in Rekeningkunde, Universiteit van Suid-Afrika): Meneer die President, my naam is Cilliers, ek is Professor in die Rekeningkunde aan die Universiteit van Suid-Afrika.

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Ter aanvang my dank aan u vir die voorreg om vandag hier by u te wees, veral met betrekking tot hierdie stimulerende onderwerp.

Ek het ’n paar gedagtes wat ek by u wil los. Eerstens, na aanleiding van Dr. Cloete se bespreking, het die gedagte by my opgekom dat die plaaslike owerhede ongetwyfeld sal moet bly voortgaan met twee verskillende soorte begrotings. Die een soort begroting is die wat hy genoem het die fiskale begro/ ting. Die ander, wat die gebruiklike begroting is. Maar die ander soort begroting is die een waarmee die bedryfsekonoom of die man in die sakelewe te doen het, wat ek wil noem die begroting met klem op beheer.

It is the budget for purpose of control, and that type of budget calls forth what has become the practice in the United States and is becoming more common in South Africa, of appointing an officer who is called a Controller. The Controller is a man who has to match the assessment of physical requirements to perform a certain function for satisfying the wants of the community, either assisted by engineers or whoever it may be, in terms of man hours or bags of cement, whatever it may be, and the economic expression in terms of money, the monetary value attached to that function. Those two things have been thrown together too frequently, and we find that we cannot say, in comparing expert' ences of the past, whether the increase in expense is attributable to a rise in prices or to inefficiency. The Controller’s function is to match those two separate types of constituents or components for costs.

No mention has been made here of the question of capacity. Unit costs are frequently referred to as a point of control. In my opinion, the unit cost cannot be a point of control. Control must be exercised at the source of the cost, that is, of the labour or of the material in its physical quantity. Unit costs can only be assessed for comparative purposes as an indication for future decisions. Statistics should be reported for the basis of what decisions are to be made, otherwise they are useless.

With reference to the statistics, I would like to refer to the point that in the business world interffirm comparison has taken on considerably in the United Kingdom and on the Continent, and I think it would be a very useful aspect for you to consider.

The question of performance budgeting, as it has been stated here, is, I think, the key to efficiency, and I would like to add my compliments to Dr. Cloete for the attitude he has taken on that, and for the suggestion that a commission be appointed to go into the whole question of the requirements for performance budgeting for standards of comparison.

Thank you.

D ie P r e s i d e n t : Baie dankie, Professor Cilliers.

I will now ask Dr. Cloete to reply to the observations which have been made on his paper. Dr. Cloete.

D r . J . J . N . C l o e t e (Universiteit van Pretoria): Meneer die President, dames en here, my aantekeninge is so slordig maar ek sal probeer antwoord op die aspekte wat hier aangeroer is. U weet as ’n mens die goed so netjies maak, dan haal jy al die romanse daaruit.

Nou die eerste geval van Meneer Rode wat nie kan begryp waarom ek die kwessie van die wegneem van die begrotingsfunksie van die stadstesouriers/ afdeling voorstaan nie en die opdra daarvan aan die stadsklerk — in Trans/ vaal, dit wil sê die hoof administratiewe beampte, o f soos hy somtyds ook genoem word die hoof uitvoerende beampte. Meneer Cowden het ook ’n probleem met hierdie selfde saak. U sal opmerk dat ek praat van die begro/ tingsfunksie en dit is by my ’n omvattende taak wat veel verder strek as net die saamstel van die voorstelle van departemente, die saamvoeging, die ko/ordinasie daarvan, moontlik so ’n waardeskatting daarvan en die voor/ legging daarvan aan die bestuurskomitee.

Budgetary Practices for L ocal A uthorities—D isc, ( c o n t . )

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Met die begrotingsfunksie bedoel ek hier daardie werksaamhede sowel as die ondersoeke wat voortdurend moet plaasvind om te sien o f daardie voorstelle van die departemente nou werklik nie skattings is nie, net een/ voudig raaiwerk o f wat ookal nie. Ons weet dat die begrotingsvoorstelle van departemente somtyds te ver navolging is van die verlede, o f somtyds eenvoudig ’n aanvulling o f ’n weglating van die syfers omdat dit nou nie presies dieselfde moet wees as die vorige jare nie. Ons ervaring van begro/ tingsinskrywings is ook dat hulle nooit verdwyn nie. En dit is n onrus/ barende verskynsel in begrotings dat indien daar eenkeer n inskrywing gemaak is in ’n begroting, dit daar bly, alhoewel die noodsaaklikheid vir daardie diens wat in die verlede gelewer is heeltemal mag verval het. Daarom dink ek dat die begrotingsfunksie baie meer dinamies van aard moet wees. Dit moet gepaard gaan met werklike ondersoek, ontleding van die voor/ stelle wat gemaak word, sowel as ontleding van die stappe wat gedoen word om die begroting uit te voer. Dit is tog immers die taak van die hoof uit/ voerende o f hoof administratiewe beampte. Dit is ook die taak, u weet, wat aan die rekenpligtige beampte van staatsdepartemente opgedra word. Nou, daar bestaan die algemene verwarring dat die rekenpligtige beampte van die staatsdepartement te doen het met rekenings. Verre daarvandaan. Die rekenpligtige bempte van ’n staatsdepartement sien nooit die rekeninge nie. A 1 wat hy sien is die begroting wat deurgestuur word na die tesourier toe. H y sien sekere opgawes wat wys hoedat daar gevorder word met die spandeer van die bedrae wat bewillig is en uiteindelik sien hy die ouditeur se verslag. Dit is al. Rekenskap gee o f rekenpligtige, die persoon wat rekenskap moet gee — en dit is immers die hoof uitvoerende beampte — is die persoon wat die taak van die begroting moet onderneem. Ek glo nie ons hoef verder daarop in te gaan nie.

Meneer Rode het die kwessie van die ouditering ook aangeroer. E k wil geensins voorgee dat as daar taakstellingsbegroting ingevoer word ouditering sal verval nie. Ouditering sal nog moet voortgaan, maar ons weet goed dat ouditering nie navraag doen na die doeltreffende funksionering nie. E k dink dit is maar somtyds per ongeluk dat ’n ouditeur begin navrae doen oor die doeltreffendheid van die funksionering wat daar plaasvind want in die reel kyk die ouditeur eenvoudig net o f die uitgawe voldoen aan die wetlike vereistes. Nou daarom, alhoewel ouditering sal bly bestaan, glo ek dat ouditering tot die begrotingstaak absoluut niks bydra nie.

Die ander saak wat Meneer Rode aangevoer het is die kwessie van die globale begrotings van staatsdepartemente en dat die plaaslike bestuurslig/ game se begroting dan heeltemal in detail gegee word omdat daar nie globale bedrae gestem kan word nie. Meneer Rode laat buite rekening die belangrike funksie wat by plaaslike bestuursliggame glad nie bestaan nie, o f in so ’n elementêre manier bestaan dat dit eintlik ook maar betekenisloos


[ 10 5 ]

is, en dit is wat in Engels bekendstaan as die ..allotment system” . Met ander woorde waar die toegewese bedrae toegewys word op ’n tydfaktor — ’n maand, drie maande o f wat ookal — sodat daar gedurigdeur voorsiening gemaak kan word vir die spandeer van die geld volgens ’n program. E k weet byvoorbeeld dat die Stadsraad van Pretoria afsonderlike begrotings opstel vir elke park en elke begraafplaas. Nou gaan die saak oor na die hoof van parke toe en wat doen by? H y sê vir ’n superintendent van ’n park, o f die man wat in beheer is van ’n park, „K y k , ons kan nie twee mense aanstel vir twee parke nie. Ons gee jou twee parke en jy moet een/derde van jou tyd aan die een park bestee en twee^derdes van jou tyd aan die ander een.” N ou wat doen hy; H y vervals net die opgawes wat hy maak van die wyse waarop hy sy tyd bestee. O f ’n mens nou in sulke omstandig/ hede iets bereik, twyfel ek baie.

Beskou ook die stelling dat die bestuurskomitee veronderstel is om beheer uit te oefen oor die uitvoering van die begroting. Dit is ook ’n twyfelagtige saak want die bestuurskomitee beskik blykbaar nie, sover ek kon vasstel, êrens oor ’n deskundige amptenaar wat voortdurend besig is om vas te stel in watter mate jou begrotings doeltreffend is en in watter mate hulle doek treffend uitgevoer word nie. Indien die hoof uitvoerende beampte sodanige personeel tot sy beskikking het om voortdurend hierdie administratiewe ontleding te doen en aan horn verslagte doen kan beamptes wat nie hulle plek volstaan nie tot verantwoording geroep word voor die bestuurskomitee. E k reken dat die hoof uitvoerende beampte, indien hy sy sout werd is, vir hierdie taak verantwoordelik moet wees.

Die kwessie van statistiek word soveel maal ge^opper. Statistiek is belang/ rik, maar daar word geweldig baie nuttelose statistiek versamel. E k onthou ’n geval wat ek raakgeloop het toe ek nog in die staatsdiens was en eendag ’n staatsdiensinspekteur vergesel het na ’n besondere departement. Ons het ’n amptenaar teë gekom wat vykerntwintig jaar lank statistieke versamel het en toe ons horn vra hoe lank dit horn neem om een van daardie groot boeke vol statistieke te skrywe sê hy: „W el, omtrent vier maande.” Ons vra toe wat doen hy dan daarmee. „ 0 dit gaan na die solder toe” sê hy. Het jy in die vykemtwintig jaar enigiemand gekry wat daardie statistieke laat uithaal; Waarop hy antwoord „N o g nooit het enigiemand daarna gekyk nie” . Nadat hy die boek gehanteer het het niemand ooit weer daaraan gevat nie. Statistieke is belangrik, maar hulle moet oordeelkundig gevra word en slegs indien hulle doelbewus gebruik kan word.

Nou, Mnr. Cow den het tereg daarop gewys wat ek sterker moes beklenv toon het dat hierdie taakstellingsbegrotings stuksgewys ingevoer behoort te word o f kan word. Myns insiens is dit bykans onontbeerlik dat iemand die voortou moet neem om daardie saak so stuksgewys in te voer. Plaaslike bestuursliggame vind hulle bestaansrede daarin dat hulle op die plaaslike

Budgetary Practices for L ocal A uthorities—Disc, (cont.)

[ 1 0 6 ]

vlak o f op ’n klein beperkte terrein eksperimente kan uitvoer, maar ons vind dat hulle nie die eksperimente uitvoer nie. Ons vra onsself dan ook af: Is dit nie miskien ook weer hier ’n kwessie van onoordeelkundige provinsiale beheer wat nie ’n plaaslike bestuursliggaam aanmoedig en miskien in ’n kleine mate subsideer om daardie eksperimente uit te voer wat eintlik ten behoewe van die provinsie gedoen word. Sou die Provinsie nie behulpsaam kan wees met die toepassing op ’n klein terrein van hierdie taakstellings/ begrotings nie. Maar ek w il nie daardeur voorgee dat dit gedoen moet word voordat hierdie Instituut nie sy plig nagekom het om met behulp van die Provinsie die saak verder te ondersoek nie. Statistieke is nie alles nie en kan nooit administratiewe ontledings vervang nie, want administratiewe ont' ledings is nie op statistiek alleen gebaseer nie. Dit gaan baie verder.

Major Mooney, I listened with interest to your remarks about the Local Health Commission, Natal, and the adoption o f the performance budget by the Commission. It would seem to me that the Local Health Com m is' sion is in such a fortunate position, because o f the great subsidies it is receiving, that it need not be so efficient in its operation. W ell, I do not know whether it is actually as bad as all that, but, personally, I would say that it would be a good thing for the Local Health Commission to try to get unit costs and go over to the performance budget system. After all, the Local Health Commission operates on a wide field; it has many localities in which it renders services, and without proper unit costs to compare I cannot see how the Local Health Commission could operate efficiently. A performance budget system would, I think, contribute quite a lot to see that satisfaction is given to all those concerned in the money affairs o f the Local Health Commission.

Nou, Professor Cilliers het vir my ondersteun in sommige van hierdie aangeleenthede. Ek bedank horn daarvoor. Sy belangstelling is vir my besonder bemoedigend aangesien dit van een van my kollegas kom.

Mr. President, once again thank you so much for the opportunity to dis cuss this matter with you. I f I can be o f any assistance to you in the future to take this matter any further, I would willingly place myself at your dis posal.

T h e P r e s i d e n t : Ladies and gentlemen, on your behalf and the Institute, I would like to thank Dr. Cloete for a most informative paper. I said at the beginning that he had behind him a real and positive experience before he became a Doctor, and I think he has demonstrated this afternoon that his feet are on the ground. I have been most impressed with his sincerity o f purpose, and I am sure that you have too. I feel that you are with me the whole way when I thank the Doctor for this most illuminating and inform mative paper. Thank you, Doctor.

The Conference now stands adjourned until tomorrow.[ 1 0 7 ]


Second Day—Tuesday, 14th April, 1964.MORNING SESSION.

M E M B E R S ’ P R I V A T E S E S S IO N ( Held in the Pretorius Hall, Pretoria)

T he President : Gentlemen, I would like to extend a very warm web come to all o f you who have been able to attend this morning and I will now ask the Secretary to read the notice convening the meeting.

T he Secretary read the notice convening the meeting.

T he P resident : In terms o f the Companies A ct, I formally declare this the Thirtyffifth A nnual General Meeting o f the Institute o f Municipal Treasurers and Accountants, S .A . (Incorporated) duly convened and open to transact the business o f the Institute as set out in the Agenda.

The next item that I would like to take is apologies from absent members. I have an apology from Mr. H . W . Anderson. I f any member present wishes to tender an apology on behalf o f anybody else who is not here, I will take it.

M r . J . G . C halmers (C ity Treasurer, East London): I have an apology from Mr. Claude Stanbury.

T he P resident : Thank you, Mr. Chalmers.

M inutes

T he P resident : The next item on the Agenda is the consideration of the Minutes o f the ThirtyTourth A nnual General Meeting o f the Institute, which was held in Salisbury on 2nd A pril, 1963. You have all received copies o f these minutes, which are bound with the Report o f the Proceedings. W ill someone please move the confirmation o f the minutes?

M r. B. S. G lover (Tow n Treasurer, Umtali) moved and Mr. A . G . M ilne (C ity Treasurer, Kimberley) seconded the confirmation o f the minutes o f the Thirty/fourth A nnual General Meeting held in Salisbury on 2nd A pril, 1963.

Agreed.

Election of O ffice rs and C ouncil

T he P resident : Item 3 on the Agenda is the Election o f Officers and Council for the ensuing year. I shall ask the Secretary to read the Presidential declaration on this matter.

[ 108 ]

T he Secre tary : Mr. President, in accordance with the provisions o f Bye-law No. 9, forms o f nomination were issued to every Fellow and Associate o f the Institute. Three members were nominated for the office o f President, five for that o f Vice-President and one for the Honorary Treasurership.

A s only one acceptance o f nomination was received in each instance, no ballot was necessary and the following members were returned unopposed:

President: Harry Row an Martin, C ity Treasurer, Salsibury.

Vice-President: Oswald Daniel Gorven, C ity Treasurer, Durban.

Honorary Treasurer: Ivor Quinton Holmes, C ity Treasurer, Johannesburg.

T he P resident : In terms o f the Constitution, I declare the following members to be duly elected for the year 1963-64 to the offices shown above their names:

Members’ Session (continued)

PresidentH arry R owan M artin , City Treasurer, Salisbury

Vice'PresidentO swald D aniel G orven, City Treasurer, Durban

Honorary TreasurerIvor Q uinton H olmes, City Treasurer, Johannesburg

T he P resident : Gentlemen, I wish to thank the members for the privilege and honour that they have bestowed upon me in electing me to a second term o f office as President.

It was with some trepidation that I accepted office last year as I wondered whether it would be possible, and in the best interests o f the Institute, for the President to be resident outside the borders o f South Africa. Happily, by means o f very active correspondence and the magnificent support o f my colleagues on the Council, which I tribute, my fears have been allayed, and I hope to continue my service as your President with renewed vigour and energy in the coming year.

Your Vice-President and Honorary Treasurer have also been re-elected and I will ask them to address you.

Mr. Gorven, Vice-President.

M r . O . D . G orven (C ity Treasurer, Durban): Mr. President and gentlemen, may I too express my appreciation o f the honour which you have

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conferred upon me in re-electing me to the position o f Vice-President. I might say, Sir, that you have been most modest in the way in which you have spoken o f yourself; in this office I find myself in a position o f having relatively a sinecure, because the President has really taken the full burden o f office, and to him I would like to express my personal appreciation.

Nevertheless, gentlemen, I am deeply honoured by this appointment, and I shall do my best to serve the interests o f this Institute to the best o f my ability. Thank you.

T he P resident : Dr. Holmes:

D r . I. Q . H olmes (C ity Treasurer, Johannesburg): Mr. President, gentlemen, I am really beginning to run out o f things to say, but, nevertheless, I do sincerely thank you for re-electing me to this office. A s I said on a previous occasion, it is not so much the Treasury side o f the office, that is the accounting side, which is very ably taken care o f by Mr. Gooch, our Secretary, but by virtue o f being your Honorary Treasurer, I am eligible to be a member o f this Council and as such able to assist the work o f the Institute.

W e will come later on to the reports for the last financial year under the treasurership o f your Honorary Treasurer, and I think you will find them satisfactory.

Once again, thank you, Mr. President and gentlemen, for re-electing me to this office.

T he P resident : I would like to say just this. It is my endeavour, sooner or later, to meet everyone o f you personally, and I hope that you will not hesitate to take the opportunity o f side-tracking me and laying me low somewhere — not in the other sense — because I would like to know each one o f you individually.

N ow I shall ask the Secretary to read the result o f the election o f four members o f the Council.

T he Se cre ta ry : Mr. President, the foregoing declaration o f officebearers was communicated to members, when nomination forms for the remaining members o f the Council were despatched. Thirteen members were nominated, o f whom eight accepted nomination, and a ballot was held.

The result o f the ballot, as certified by the Scrutineers, w as:

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R . S. W alker, Cape Province h i votesF. E. Jenvey, Cape Province 107 votesJ . W . Cowden, Transvaal Province 92 votesW . G . Anderson, Natal Province 91 votesH . Rode, Transvaal Province 29 votesD . G . Tees, Natal Province 23 votesR . M. Reid, Transvaal Province 8 votesH . J . S. Joubert, Transvaal Province . ■ . 7 votes

T he P resident : In terms o f the Constitution, I declare Messrs. R . S.Walker, F. E. Jenvey, J . W . Cowden and W . G . Anderson duly elected to the Council o f the Institute for the year 1963-64.

N ow perhaps we could call upon Mr. W alker, as the senior sitting member, to say a few words on behalf o f the other members o f the Council.

M r . R . S. W alker (C ity Treasurer, Cape T ow n ): Mr. President, this is the first information I have had of the election, so I immediately stand to correct one thing. You said the senior sitting member, but I think friend Jenvey occupies this position.

W ell, gentlemen, I have served on this Council for a number o f years, and sometimes I wonder why I have done so. I think the reason is because I have been interested in the work o f the Institute, I like to see the way it is growing, I like to be able to associate myself with all the other members in forwarding the welfare o f this Institute, and for those reasons I would be very sorry indeed i f I were not re-elected.

O n behalf o f the re-elected members, I would say that we do try to give o f our best in the interests o f the welfare o f the Institute, and we thank you for the confidence you have placed in us.

T he P resident : Thank you, Mr. Walker.

Election of H onorary A uditors

T he P resident : The next item on the Agenda is the election o f two Honorary Auditors. These posts have been filled with distinction for some time by Mr. R . M. Reid, the City Treasurer o f Germiston, and Mr. L . C . Lister, the Tow n Treasurer o f Brakpan, who have really rendered us faithful service as watchdogs o f the Institute.

I now call for nominations for the positions o f Honorary Auditors for the ensuing year.

M r . J . G . C halmers (C ity Treasurer, East London): I would like to move that Messrs. R . M. Reid and L . C . Lister be re-elected.

[ i l l ]

T he P resident : A re there any further nominations, gentlemen? Mr. Reid and Mr. Lister, or the partnership, as I shall call it, you have been nominated for the offices o f Honorary Auditors for the ensuing year and may I enquire as to your readiness to continue in the service o f the Institute?

M r. R . M. R eid (C ity Treasurer, Germiston): Mr. President, like the Honorary Treasurer, we find words difficult to come by. A s a partnership, we shall take on the work again.

T he P resident : W ell, gentlemen, it gives me very great pleasure to declare that the old firm has been re-elected. For a moment, I thought we were going to have the experience o f switching the Auditors.

R E P O R T O F T H E C O U N C I L

T he P resident : The next item on the Agenda is the Report o f the Institute Council. In the certain knowledge, including members o f the Council, that we have all read the Institute Council’ s Report, I, as President, formally move that the Report, including the Statement o f Accounts, be received for our discussion.

Agreed.

T he P resident : I propose to read out the paragraph numbers only and invite comment as each paragraph number is announced.

KEPOKT OF THE COUNCILi . The Council has pleasure in submitting the following report on the

work undertaken on behalf o f the Institute since the date o f the Thirty- fourth A nnual General Meeting.

1 . —E L E C T I O N O F O F F IC E R S A N D C O U N C I L , 1963-64

2. In accordance with the provisions o f Bye-law No. 9, forms o f nomination were issued to every Fellow and Associate o f the Institute. Three members were nominated for the office o f President, five for that o f Vice- President and one for the Honorary Treasurership.

3. A s only one acceptance o f nomination was received in each instance, no ballot was necessary, and the following members were returned unopposed:

P resident

Harry Rowan Martin C ity Treasurer, Salisbury

V ice-P residentOswald Daniel Gorven C ity Treasurer, Durban

H onorary T reasurer

Ivor Quinton Holmes C ity Treasurer, Johannesburg[ 112]


4. The foregoing declaration o f office-bearers was communicated to members, when nomination forms for the remaining members o f the C ouncil were despatched. Thirteen members were nominated, o f whom eight accepted nomination, and a ballot was held.

R eport of the C ouncil (continued)

The result o f the ballot, as certified by the Scrutineers, was:R . S. Walker Cape Province h i votesF. E . Jenvey Cape Province 107 votesJ . W . Cowden Transvaal Province 92 votesW . G . Anderson Natal Province 91 votesH . Rode Transvaal Province 29 votesD . G . Tees Natal Province 23 votesR . M. Reid Transvaal Province 8 votesH . J . S. Joubert Transvaal Province 7 votes

The four elected members are, therefore, Messrs. R . S. Walker, F. E. Jenvey, J . W . Cowden and W . G . Anderson.

6. The Scrutineers appointed to act in connection with the counting of votes were Messrs. E . J . Bartleet, a . i .m .t .a . ( s .a . ) and J . M. Cosijn, a . i .m .t .a . ( s .a . ) , o f the C ity Treasurer’s Department, Johannesburg, to whom the Council extends its thanks.

IL —M E E T IN G S O F T H E C O U N C I L

7. The Council met on five occasions during the year. Matters requiring attention during the intervening periods were dealt with by means o f postal communication. In three instances, meetings o f the Examinations Com m ittee preceded those of the Council.

III .— I N S T I T U T E E X A M I N A T I O N S , 1963

8. The Intermediate and Final Examinations o f the Institute were held during the period 25th to 28th November, 1963, both dates inclusive.

9. Candidates sat in twenty-three centres, viz. Belfast, Bloemfontein, Bredasdorp, Bulawayo, Cape Town, Christiana, Durban, East London, Gwelo, Johannesburg, K itwe, Klerksdorp, Pietermaritzburg, Port Elizabeth, Potgietersrus, Pretoria, Salisbury, Upington, Virginia, W alvis Bay, Windhoek, Wolmaransstad and Worcester.

10. Applications for permission to proceed to the examinations were submitted by 2 1 1 candidates and duly approved, but o f this number thirteen forwarded notice o f their withdrawal, one resigned from Municipal service, one became ineligible to write, while thirty-five failed to present themselves. 11

1 1 . The results o f the examinations were as follows:

[ 1 13 ]


A .— Intermediate : P art I PASSED

van W yk, P. J.Dodds, E. W . van der Zee, B.Mulder, H. du P.Beaton, D. A .Watson, B. D. J.Sansom, A . N.Smit, C . S.Botha, C . S. van H. Buitendag, C . D.Findlay, A . C . G. .Florence, I. M.Heyneke, P. J.Jacks, H.Liebenberg, J. H.Malan, Z. F. .Marx, P. J.Olivier, N. S . .Pienaar, A . J.Reyneke, B. J.Scheepers, G. R. J . .Shandoss, J . M.Cox, P. F. F.Landsberg, E. D.Zeiss, R. G. .Cronje, C . P . .Pitel, J. W . J . .Smit, P. J.Hughes, R. P.

Seventy-six candidates presented

Brakpan Bulawayo

. . . Christiana

. . . De DoomsDurban Durban

. . . East London

. . . Glencoe

. . . JohannesburgJohannesburg Johannesburg Johannesburg Johannesburg

. . . Johannesburg

. . . JohannesburgJohannesburg

. . . Johannesburg

. . . Johannesburg

. . . JohannesburgJohannesburg Johannesburg Johannesburg Pietermaritzburg Pietermaritzburg

. . . Port ElizabethPretoria

. . . Pretoria

. . . Pretoria

. . . Salisbury

themselves for this examination.

B .—Intermediate : P art II

Davies, R.Irons, C . F. .Mumford, B. R.Strydom, A . M.Waters, B. R.Truter, J . B.Bezuidenhout, C . P. van Huyssteen, R. J. van der Merwe, F. J .

Thirty-four candidates presented

PASSED. . . . Durban

Johannesburg Johannesburg Johannesburg Johannesburg Kitwe Makwassie Potgietersrus

. . . . Walvis Bay

themselves for this examination.

C .—F in a l : Parts I and II FIRST PLACE

Venter, S. J .......................................................................Johannesburg

SECOND PLACE

[ 1 14 ]du Toit, J. F. Windhoek


D .—F in a l : P art I

PASSED

du Plessis, J. A . BoksburgMuller, G. H. P. . Germistonvan den Berg, A . J. . . . . GermistonDiffenthal, D. A . JohannesburgLoubser, M. J. . . . . JohannesburgMittel, M. L. JohannesburgMunitich, G. J. JohannesburgPostage, E. . . . . Johannesburgvan Zyl, M. E. . . . . JohannesburgVenter, S. J. . JohannesburgWhittaker, F. . JohannesburgNieuwoudt, S. F. KroonstadFretton, D. St. J. NdolaFick, A . J. . . . . . PhalaborwaJanse van Vuuren, J. G. . Pretoria (Peri-Urban

Areas HealthLang, F. G. . Salisbury

Twenty-six candidates presented themselves for this examination.

E .—F in a l : Part II

PASSED

Lomnitz, N. G. Cape Townde Lange, J. F. CarletonvilleRitson, C . J. . DurbanFlax, S. M. . Johannesburg (Pension Fund)Maisey, F. T. G. W. JohannesburgMittel, M. L. JohannesburgPotgieter, A . M. JohannesburgRoelofsz, K. G. JohannesburgVenter, J. A . M. JohannesburgVenter, S. J. . JohannesburgKnox, C. Klerksdorpde Jager, P. P. Pretoria (Peri-Urban

Areas Health Board)Dakers, P. . . . . . Stilfonteinvan W yk, W . P. V. Virginiavan den Berg, M. J. Walvis Baydu Toit, J. F. . WindhoekLabuschagne, J. C . WindhoekSmith, C. J. . Windhoekvan der Berg, D. C. . . . . . Windhoek

Thirty-three candidates presented themselves for this examination.

[ H5 ]

R eport of the C ouncil ( continued)

S U M M A R Y O F R E S U L T SPercentage

Entered Passed o f PassesIntermediate: Part I 76 29 38.16Intermediate: Part II* 34 9 26.47Final: Part I . 26 16 61.54Final: Part II** . . . . 33 19 5 7 -5«

169 73 43.20

* Four of these candidates also included in Part I** Four of these candidates also included in Part I

12 . In the Intermediate Examination, no candidate qualified for the Maldwyn Edmund Prize.

13 . The annual prize o fR 2 i.o o donated by the Institute to the candidate taking first place in the Final Examination was awarded to S. J . Venter, o f Johannesburg.

14. It will be observed from the summary o f results that 73 out o f 169 candidates were successful in the examinations, compared with 73 out o f 167 the previous year, the percentage being 43.20 and 43.71 respectively.

15 . Examiners’ reports again indicated an improvement in some subjects but contained unfavourable comments in regard to others. Some o f the faults mentioned by examiners were untidiness in setting out the answers, lack o f exercise o f common sense, verbosity when conciseness is called for, poor handwriting, spelling and standard o f English in some cases, and the obvious misreading o f questions. Examiners again drew attention to the necessity for more general reading in some o f the subjects. It would still appear that many o f the candidates are not adequately prepared for the examinations.

E X A M IN E R S

16. The following gentlemen acted as Examiners:W alker, R. S., b.com., f .i.m.t.a .(s.a .), a .s.a .a .,

C.A.(S.A.), A.C.I.S., A.I.A.C.................................G riffin, W . F., f .i.m.t.a .(s.a .), c.a.(s.a .)Louw, E. J., c.a .(s.a . ) .......................................G len, N., c .a .(s.a .), f.s.a .a .G orven, O. D., b.com., f .i.m.t.a .(s.a .), f.c.i.s.,

A.C.W.A. ..........................................................L indsay, B. C ., b.econ., a .c .i.s. .Tees, D. G., b.com., f .i.m.t.a .(s.a.), a .c .i.s.,

F.I.A.C., A . C . W . A . .......................................Matthews, J. W ., b.com., a .i.m.t.a .(s.a .) Hutt, Prof. W . H., b.com.(lond.)

Cape Town . AccountancyCape Town . AccountancyCape Town . AccountancyJohannesburg . Auditing

Durban AuditingEast London . Banking and Public Finance

Pinetown Commercial ArithmeticJohannesburg . CostingUniversity of

Cape Town Economics[ H U

Holmes, I. Q., m.com., d.phil., f .i.m.t.a.(s.a .) Johannesburg Local Government FinanceJ envey, F. E., b.com., f.i.m.t.a .(s.a .) . . Port Elizabeth Local Government FinanceC owden, J . W ., B.A., B.COM., F.i.M.T.A.(s.A.) . Springs . Local Government Finance

(Essays)Burchell, Prof. E. M., m.a .(cantab.), ll.b.

(s.a .) . . . . . . . University ofNatal Mercantile Law

Nolte, J . H., ll.b. . . . . . Port Elizabeth Municipal LawC arine, W ., b.com., f.i.m.t.a .(s.a .), a .c .i.s. . Johannesburg StatisticsMr. E. J. Louw was appointed an additional examiner in Accounting.

17 . T o each o f these gentlemen the Council expresses its thanks and appreciation for their services in setting and marking the papers.

18. The Council also desires to place on record its thanks for the assist tance rendered by various members o f the Institute and others who arranged accommodation in the approved centres, acted as invigilators and helped in other capacities.


IV .— R O L L O F M E M B E R S H IP

A . — A d m is s io n s

19 . A s s o c i a t e s .—The undermentioned applicants, having passed the Final Examination o f the Institute, were admitted to Associate Membership:

A ldis, A . S. Port ElizabethBotha, P. J. B. DespatchFry, E. H. . Fish HoekG eyer, D. A . . . . . Cape TownK ruger, B. J. . . . . KlerksdorpL ombard, R . . . . . . JohannesburgPickerill, T. F. . . . . . East LondonPienaar, A . J. . . . . JohannesburgR ichardson, R. F. Johannesburgvan den Berg, W . J. Brakpan

B.— T r a n s f e r s

20. The undermentioned transfers were approved:Haugen, H. E. C oomer, J. H. Hornby, J . . Robertson, W . D. H. W illiams, G. R. .

Durban. Cape Town Salisbury . Pretoria England

From Special Class Associate to Associate. From Associate to Special Class Associate. From Associate to Special Class Associate. From Associate to Special Class Associate. From Associate to Special Class Associate.

C .— R e s ig n a t io n

2 1. The undermentioned resignation was noted:Marsden, A . . . Johannesburg . Special Class Associate.

[ 1 1 7 ]

D .— D e a t h

22. The Council records, with regret, the death on the 13th May, 1963, o f Robert D u ff Chambers, East London, who was an Associate Member of the Institute.


E .— S t u d e n t M e m b e r s h i p

23. In terms o f Bye-law 26, twenty^six students were admitted to Student Membership o f the Institute, having either passed the Intermediate Examina^ tion or been exempted therefrom. Ten former members were elected to Associate Membership, following their successes in the Final Examination, while four terminated their membership for various reasons.

F .—H o n o r a r y M e m b e r s h i p

24. In terms o f Article 2 1 o f the Articles o f Association, the Council elected eighty^one representatives nominated by local authorities and others to Honorary Membership for 1963^64.

G .— N u m b e r o n R o l l

25. The membership o f the Institute, inclusive o f Students and Honorary Members, as at the 31st January, 1964, was as follows:

F e l l o w s A sso c ia te s S tu d en ts T o ta l

Honorary Members . . . . . . 82Members at 31st January, 1963 . . . . 30 237Admissions 10

30 247L e s s : Resignation and Death . . . . — 2

30 245 275

Student Members at 31st January, 1963 . . . 135Admissions . . . . . . . . 26

161L e s s : Transfers and Resignations . . . 14 147

504

V .— S T U D E N T S ’ S O C IE T IE S26. From reports received from the various Students’ Societies, it would

appear that there has been a slight improvement in the number o f members during the year.

27. Regular meetings have been held by some o f the societies, at which the papers and addresses given were o f the usual high standard. The figure o f average attendance at these meetings shows no improvement over that for last year.

[ 1 18 ]

28. Librarians report further acquisitions o f valuable text and reference books, and library facilities o f an attractive nature continue to be offered to members.

29. The financial position o f the various Students’ Societies is again satisfactory.

V I .—M E M O R A N D A P R E P A R E D B Y I N S T I T U T E30. A t the request o f the United Municipal Executive o f South Africa,

the Institute published Memoranda under the following titles:Native Revenue A ccount: Administration Charges.Sources o f Income o f Local Authorities and some Non-Property Taxes.The Sale o f Immovable Property in pursuance o f a Hire-Purchase Agree

ment.Railway Sidings to Industrial Townships.Changing the Content and Size o f Coins.

V I I .—A N N U A L C O N F E R E N C E

31. The Thirty-fourth A nnual Conference o f the Institute was held in Salisbury, Southern Rhodesia, from 1st to 4th A pril, 1963, and drew a large attendance o f members and delegates from the Republic, South-West A frica, and the Federation o f Rhodesia and Nyasaland. The papers presented were o f the usual high standard associated with the Institute’s C on ferences, and much valuable discussion thereon ensued. Everything possible was done by the Mayor and C ity Council o f Salisbury to make the function the success it was, both in regard to the arrangements for the actual C on ference and for the comfort and entertainment o f delegates and visitors.

32. The Conference was opened by The Honourable Mr. J . A . Clark, Federal Minister for Commerce and Industry.

V I I I .— L E G I S L A T I O N D U R I N G T H E Y E A R

3 3. There was a small amount o f legislation o f a financial nature affecting local authorities during the year. The following Acts and Ordinances should be noted:

RepublicNo. 1.—Cape Town Foreshore Amendment Act, 1963, amending the Cape

Tow n Foreshore A ct, 1950, and setting out the conditions under which land or property forming part o f the foreshore which has been transferred or let is rateable by the Divisional Council o f the Cape.

No. 6.—Income Tax Amendment Act, 1963, amending the law relating to income tax, to provide for the amount o f taxes levied to be deducted or

[ 119]

R eport of the C ouncil ( c o n t i n u e d )

withheld by employers from the remuneration o f employees. ( P .A .Y .E . system.)

CapeNo. 6.—Local Authorities (Development according to Community) Ordinance,

1963, providing for the establishment o f Consultative Committees, Manage' ment Committees or Local Authorities for certain Group Areas or portions thereof, and providing for matters incidental thereto.

NatalNo. 10.—Kranskop Health Committee Loan Ordinance, 1963, granting borrow'

ing powers to the Kranskop Health Committee.

No. 11.—Gingindlovu Health Committee Loan Ordinance, 1963, granting borrowing powers to the Gingindlovu Health Committee.

No. 12.— Vryheid Borough Loan Ordinance, 1963, granting borrowing powers to the Tow n Council o f the Borough o f Vryheid.

No.13.—Botha’s Hill Health Committee Loan Ordinance, 1963, granting borrowing powers to the Botha’s H ill Committee.

No. 19.—New Germany Extended Powers and Loan Ordinance, 1963, granting further or extended powers to the Borough o f New Germany, including further borrowing powers.

No. 16.— Westville Loan Ordinance, 1963, granting extended borrowing powers to the Tow n Council o f the Borough o f Westville.

No. i j .—Eshowe Loan Ordinance, 1963, granting further borrowing powers to the T ow n Council o f the Borough o f Eshowe.

No. 18.—Ixopo Health Committee Loan Ordinance, 1963, granting borrowing powers to the Health Committee o f Ixopo.

No. 19.—Durban Extended Powers Amendment Ordinance, 1963, granting further or extended powers to the C ity Council o f the C ity o f Durban, amending certain A cts and Ordinances, and providing for matters incidental thereto.

Orange Free StateNo. 13.—Local Government Amendment Ordinance, 1963, amending the

Local Government Ordinance, 1962, in regard to the establishment o f a reserve fund, interim valuation and rateable property.

TransvaalNo. j .—Local Authorities Rating Amendment Ordinance, 1963, amending the

Local Authorities Rating Ordinance, 193 3, by the substitution o f decimal currency terms for pounds, shillings and pence.

[ 120 ]

R eport of the C ouncil (c o n t i n u e d)

No. 19.—Local Government Amendment Ordinance, 1963, amending the Local Government Ordinance, 1939, in regard to the construction, demo' lition, repair or alteration o f any building.

I X .— THE SOUTH AFRICAN TREASURER DIE SUID'AFRIKAANSE TESOURIER

34. The Council wishes to extend its thanks to the editorial staff o f The South African Treasurer/Die Suid'Afrikaanse Tesourier and to the local cor' respondents who helped the honorary editor considerably in getting out the punctual and up'tO'date issues o f the journal, which have appeared regularly month by month.

35. Thanks are also tendered to the contributors to the journal, some regular and some sporadic, who have materially assisted to keep members abreast o f current trends. A ll in all, however, the bulk o f the individual members continues to be somewhat chary o f making use o f this sounding' board, which is intended to give a wide currency to their personal views, their experiences and their problems.

36. In the nature o f things, a specialist periodical o f this kind sometimes receives a plethora o f material and sometimes suffers a dearth. In consequence, sound and interesting material has sometimes to be sacrificed because it loses topicality, and at other times the quality o f an issue will tend to be uneven. Nevertheless, a high standard is maintained, and the honorary editor has asked the Council to thank all persons sincerely who have helped to make that possible.

X .— S T A T E M E N T O F A C C O U N T S

37. The Honorary Treasurer’ s Statement o f Accounts for the year ended 31st October, 1963, is appended to this report.

38. The Council has pleasure in recording its thanks to Messrs. R . M. Reid and L . C . Lister, who acted as Honorary Auditors.

Signed on behalf o f the Council,

H . R . M A R T IN , PresidentS. C . G O O C H , Secretary

Report of the C ouncil (continued)

[ 12 1 ]

INSTITUTE OF MUNICIPAL TREASURERS AND ACCOUNTANTS, S.A. (Incorporated)

A G G R E G A T E B A L A N C E SH EET A S A T 3 i s t O C T O B E R , 1 9 6 3 .

1961-62 R c

3,904.72438.52

20,000.00

200.0010.07

LIABILITIES

Sundry Creditors General Account South African Treasurer.

33.60

8,029.18

Accumulated Fund General Account—

Balance as at 31st October, 1962 Add: Surplus for 1962-63

South African Treasurer—Balance as at 31st October, 1962 Add: Surplus for 1962-63

5,443.50

R38.059.59

R c

3,809.00117.59

General Reserve Fu n d ..................................Trust Funds

Maldwyn EdmundC a p i t a l ..................................................... 200.00Accrued In te re s t............................................... 16.07

216.07Joint Committee of Students’Societies—I.M.T.A................................................ 33.60

8,029.182,445.50

10,474.68

5,443.50 197.42

R c

3,926.5920,000.00

249.67

5,640.92 16,115.60

R40.291.86

1961-62 R c

2.00

823.02507.20

200.0010.07

33.60

28,500.002,467.74

4,000.001,103.37

141.14271.45

ASSETSR c

Furniture and Fittings..................................Sundry Debtors

General A c c o u n t .............................. 956.75South African T r e a s u r e r ................... 384.74

Trust Funds Maldwyn Edmund

Republic of S.A. 3 per cent Stock 1957-66 200.00Cash at B a n k ..................................... 16.07

216.07Joint Committee of Students’ Societies,

I.M.T.A.—Cash at B a n k ............................... 33.60

Investments General Account—

Municipal S to c k ............................... 28,500.00Building Society Savings Account . . . 4,347.81

South African Treasurer—Building Society Fixed Deposits Building Society Savings Account

Cash at bank and on Hand General Account South African Treasurer.

32,847.81

4,000.001,140.26

477.12233.51

R c2.00

1,341.49

249.67

5,140.26 37,988.07

710.63R38,059.59 R40,291.86

, , We reportthatw e have examined the books, accounts and vouchers of the Institute of Municipal Treasurers and Accountants, S.A. (Incorporated) for the year ended 31st October 1963 We have satisfied ourselves of the existence of the securities appearing in the above Balance Sheet. Proper books and accounts have been kept, and we have obtamed all the mforrnation and explanations we have required. In our opinion the above Balance Sheet is properly drawn up so as to exhibit a true and correct view of the state ot the Institute s affairs according to the best of our knowledge and the explanations given to us and as shown by the books of the Institute as at 31st October, 1963.(Signed) I. Q. HOLMES, m.com., d .phil., f.i.m.t.a.(s.a.), Hon. Treasurer.t , , , ... , (Signed) R. M. REID, b.com., f.i.m.t.a.Cs.a.) I „ .Johannesburg, 22nd November, 1963. L C LISTER a i m t A is a ) ' f ^ on Auditors.

INSTITUTE OF MUNICIPAL TREASURERS AND ACCOUNTANTS, S.A. (Incorporated)Income and Expenditure A ccount for the Y ear ended 31st O ctober , 1963

GENERAL1961-62 EXPENDITURE

R c R c1,318.50 Salaries and H o n o r a r i a ................................................................ 1,318.50

798.64 Stationery and Office E x p en se s ............................................... 812.46296.75 Travelling and Subsistence Allowances................................... 278.36

3,246.85 Conference E xpenses................................................................ 3,438.44— Subscriptions Written o f f .......................................................... 3.00

2,740.76 Surplus — Transferred to Accumulated F u n d ....................... 2,445.50

ACCOUNT1961-62 INCOME

R c R c1,889.25 Entrance Fees and Subscriptions.............................................. 1,959.503,160.50 Conference Attendance F ees ..................................................... 2,654.40

972.00 Sale of Conference Proceedings.............................................. 987.50314.18 Sale of P u b lic a tio n s ................................................................ 483.20

1,729.42 Interest on In v e s tm e n ts .......................................................... 1,747.9732.50 Underwriting Commission and D is c o u n t ............................. —8.40 D o n a tio n s .................................................................................. 2.10

295.25 Surplus — Examinations B o a rd .............................................. 461.59

R8,401.50 R8.296.26 R8,401.50 R8,296.26

tow

1961-62R c333 .60

81 . 15144 .50

407 .1021 .00

295.,25

R 1,282. 60

EXPENDITURE

Salaries.......................................................................Stationery and Office E x p en se s ..............................Travelling and Subsistence Allowances . . . .Examiners’ F e e s .....................................................

Less: Fees not payable in terms of Clause 7 of the M e m o ra n d u m .........................................

Institute P r iz e ...........................................................Surplus — Transferred to General Account

EXAMINATIONS BOARD

R c R c . . 300.00. . 266.91. . 137.90

770.10

325.50-------- 444.60

. . 21.00

. . 461.59

R 1,632.00

1961-62 R c

1,237.95

44.65

R 1,282.60

INCOME

Examination Fees .

Sale of Examination Papers

1,5 8 7 .6 0

44.40

Rl,632.00

“ SOUTH AFRICAN TREASURER”1961-62 EXPENDITURE

R c R c31.50 H o n o ra ria .................................................................................. 10.50

3,013.70 Printing and S ta tio n e ry .......................................................... 2,979.2688.31 General E xpenses...................................................................... 89.28

172.99 Agents’ C om m ission ................................................................ 168.899.30 Bad Debts Written o f f .......................................................... 7.50

75.30 Surplus — Transferred to Accumulated F u n d ....................... 197.42

R3.391.10 R3,452.85

1961-62 INCOMER c R c

1,336.23 S ubscrip tions............................................................................. 1,368.791,821.60 Advertising................................................................................... 1,872.00

232.49 Interest on In v e s tm e n ts ............................................................ 210.66.78 Sundry R e v e n u e ........................................................................ 1.40

R3.391.10 R3.452.85

We report that to the best of our knowledge and belief and on information supplied to us the above Income and Expenditure Account reflects a true statement of the income and expenditure of the Institute of Municipal Treasurers and Accountants, S.A. (Incorporated) for the year ended 31st October, 1963.(.Signed) I. Q. HOLMES, m.com., d .phil., f.i.m.t .a.(s.a .), Hon. Treasurer.Johannesburg, 22nd November, 1963.

(Signed) R. M. REID, b .com., f .i .m.t.a.(s.a.) L. C. LISTER, a.i.m.t .a .(s.a.) } Hon. Auditors.

V E K S L A G V A N DIE R A A D

1 . Dit doen die Raad genoë om die volgende verslag oor die werk wat sedert die datum van die Vier/en-dertigste Algemene Jaarvergadering namens die Instituut verrig is, in te dien.

I .—V E R K I E S I N G V A N B E A M P T E S E N D IE R A A D , 1963-64

2. Ooreenkomstig die bepalings van verordening No. 9 is nominasievorms aan elke Genoot en Assosiaatlid van die Instituut gestuur. Drie lede is vir die amp van President, vy f vir Vise-President en een vir dié van Ere-tesourier benoem.

3. Aangesien daar ten opsigte van elk van die ampte slegs een persoon nominasie aanvaar het was dit nie nodig om te stem nie, en die volgende is onbestrede verkies.

P resident

Harry Row an Martin Stadstesourier, Salisbury

V ise-P resident

Oswald Daniel Gorven Stadstesourier, Durban

Ere-T esourier

Ivor Quinton Holmes Stadstesourier, Johannesburg

4. Voorgaande verklaring van ampsdraers is saam met nominasievorms vir die orige lede van die Raad aan lede uitgestuur. Dertien lede is genomineer, agt van hulle het nominasie aanvaar en daar is gestem.

5. Die uitslag van die stemmery soos die stemopnemers dit gesertifiseer het, is soos vo lg :

R . S. WalkerF. E . Jenvey J . W . Cowden W . G . Anderson H. Rode D . G . Tees R . M. Reid H. J . S. Joubert

Kaapprovinsie Kaapprovinsie Provinsie Transvaal Provinsie Natal Provinsie Transvaal Provinsie Natal Provinsie Transvaal Provinsie Transvaal

h i stemme 107 stemme 92 stemme 91 stemme 29 stemme 23 stemme

8 stemme 7 stemme

Die vier lede wat verkies is, is dus mnre. R . S. W alker, F. E. Jenvey, J . W . Cowden en W . G . Anderson.

6. Die stemopnemers wat aangestel is, om die stemme te tel, was mnre. E . J . Bartleet, a .i .m .t .r .(s .a .) en J . M. Cosijn, a .i .m .t .r .(s .a .) van die Stadstesouriersafdeling Johannesburg en die Raad bedank hulle hiervoor.

[ 1 2 4 ]

I I — V E R G A D E R I N G S V A N D IE R A A D

7. Die Raad het vyfmaal gedurende die jaar vergader. Sake waaraan daar tussenin aandag bestee moes word is deur middel van briefwisseling afgehandel. In drie gevalle het vergaderings van die EksamervKomitee dié van die Raad voorafgegaan.

III .—E K S A M E N S V A N D IE I N S T I T U U T 1963

8. Die Intermediêre, en Finale eksamens van die Instituut is gedurende die tydperk 25 tot en met 28 November 1963, geskryf.

9. Kandidate het in drie-'en/twintig sentrums geskryf, nl. Belfast, Bloemfontein, Bredasdorp, Bulawayo, Kaapstad, Christiana, Durban, Oos- Londen, Gwelo, Johannesburg, Kitwe, Klerksdorp, Pietermaritzburg, Port Elizabeth, Potgietersrus, Pretoria, Salisbury, Upington, Virginia, W alvisbaai, W indhoek, Wolmaransstad en Worcester.

10. Tweehonderd-en-elf persone het aansoek gedoen om die eksamens te skryf. Die aansoeke is almal goedgekeur, maar van hierdie getal het dertien hulle aansoeke teruggetrek, een het uit Munisipale diens bedank, en een kon nie meer aanspraak maak op toelating nie, terwyl vyEen/dertig nie op die eksamendatum opgedaag het nie.

1 1 . Die uitslag van die eksamens was soos volg:

V erslag van die R aad (vervolg)

A . — I n t e r m e d iê r e E k s a m e n : D e e l I

GESLAAGvan Wyk, P. J. BrakpanDodds, E. W. . . . . . Bulawayovan der Zee, B. ChristianaMulder, H. du P. . . . . . De DoomsBeaton, D. A. DurbanWatson, B. D. J. DurbanSansom, A. N. . . . . . OoS'LondenSmit, C. S. GlencoeBotha, C. S. van H. . . . . . JohannesburgBuitendag, C. D. . . . . . JohannesburgFindlay, A. C. G. . . ' . . . . JohannesburgFlorence, I. M. . . . . . JohannesburgHeyneke, P. J. . . . . . JohannesburgJacks, H. . . . . . JohannesburgLiebenberg, J. H. JohannesburgMalan, Z. F. . . . . . . JohannesburgMarx, P. J. . . . . . JohannesburgOlivier, N. S. JohannesburgPienaar, A . J. JohannesburgReyneke, B. J. JohannesburgScbeepers, G. R. J. . . . . . . JohannesburgShandoss, J. M. . . . . . JohannesburgCox, P. F. F. PietermaritzburgLandsberg, E. D. . . . . . Pietermaritzburg

f 1 2 5 ]

V erslag van die Raad (vervolg)

Zeiss, R. G. . Cronje, C. P. Pitel, J. W. J . . Smit, P. J. . Hughes, R. P.

Port ElizabethPretoriaPretoriaPretoriaSalisbury

Ses-eivsewentig kandidate het hierdie eksamen geskrywe.

B .— In t e r m e d iê r e E k s a m e n : D e e l II

GESLAAG

Davies, R. . . . . . DurbanIrons, C. F. JohannesburgMumford, B. R. JohannesburgStrydom, A. M. JohannesburgWaters, B. R. JohannesburgTruter, J. B. . KitweBezuidenhout, C. P. Makwassievan Huyssteen, R. J. Potgietersrusvan der Merwe, F. J. Walvisbaai

ertig kandidate het hierdie eksamen geskrywe.

c . —F in a l e E k s a m e n : D e e l I e n IIEERSTE PLEK

Venter, S. J. Johannesburg

TWEEDE PLEKdu Toit, J. F. Windhoek

D .— F in a l e E k s a m e n : D e e l I

GESLAAG

du Plessis, J. A. BoksburgMuller, G. H. P...................................... . . Germistonvan den Berg, A . J. GermistonDiffenthal, D. A. JohannesburgLoubser, M. J. JohannesburgMittel, M. L. JohannesburgMunitich, G. J. JohannesburgPostage, E. Johannesburgvan Zyl, M. E. JohannesburgVenter, S. J. . JohannesburgWhittaker, F. . JohannesburgNieuwoudt, S. F. KroonstadFretton, D. St. J. NdolaFick, A. J ................................................. PhalaborwaJanse van Vuuren, J. G. . Pretoria (Die Gesondheidsraad

vir Buitestedelike Gebiede.)Lang, F. G. . Salisbury

Ses/ervtwintig kandidate het hierdie eksamen geskrywe.

[ 126]

V erslag van die Raad (vervolg)

E .— F in a l e E k s a m e n : D e e l II GESLAAG

Lomnitz, N. G. Kaapstadde Lange, J. F. CarletonvilleRitson, C . J. . DurbanFlax, S. M. Johannesburg (Pensioenfonds)Maisey, F. T. G. W . JohannesburgMittel, M. L. . JohannesburgPotgieter, A . M. JohannesburgRoelofsz, K. G. JohannesburgVenter, J. A . M. JohannesburgVenter, S. J. . JohannesburgKnox, C. Klerksdorpde Jager, P. P. Pretoria (Die Gesondheidsraad

vir Buitestedelike Gebiede)Dakers, P. . . . . . Stilfonteinvan W yk, W . P. V. Virginiavan den Berg, M. J. Walvisbaaidu Toit, J . F. . WindhoekLabuschagne, J. C. WindhoekSmith, C . J. . Windhoekvan der Berg, D. C . Windhoek

Drie/emdertig kandidate het hierdie eksamen geskrywe.

SA M E V A T T IN G V A N R E S U L T A T E 12 13 14 15Persentasie

Ingeskryf Afgelê Geslaag

Intermediêre Eksamen: Deel I 7 6 29 38.16Intermediêre Eksamen: Deel II* . 34 9 26.47Finale Eksamen: Deel I 26 16 61.54Finale Eksamen: Deel II** 33 19 5 7 -5 »

169 73 43.20

* Vier van hierdie kandidate se name verskyn 00k in Deel I.** Vier van hierdie kandidate sé name verskyn ook in Deel I.

12 . Nie een van die kandidate het in die Intermediêre Eksamen voldoen aan die vereistes vir die toekenning van die M aldwyn Edmund/prys nie.

13 . Die jaarlikse prys van R 2 1.0 0 wat deur die Instituut geskenk word aan die kandidaat wat die eerste plek in die finale eksamen behaal, is aan Mnr. S. J . Venter van Johannesburg, toegeken.

14. Dit blyk uit die samevatting van die uitslae dat 73 van die 169 kandidate in die eksamen geslaag het, vergeleke by 73 van die 167 van die vorige jaar. Die persentasie was dus onderskeidelik 43.20 en 4 3 .7 1. Hierdie syfers toon dus ’n geringe verbetering t.o.v. die persentasie wat geslaag het.

15 . Verslae wat deur die eksaminatore ingedien is, dui aan dat daar verbetering ingetree het sover dit sekere vakke betref, maar t.o.v. ander vakke

t 1 2 7 ]

was die kommentaar ongunstig. Sommige van die foute wat deur die eksa' minators gemeld is, is die slordige uiteensetting van antwoorde, gebrek van helder denke, omslagtigheid in plaas van bondigheid, die swak hand' skrif, die swak spelling en in sommige gevalle, die swak standaard van Em gels, en die klaarblyklike neiging om vrae verkeerd te lees. Weereens is melding gemaak van die wenslikheid dat daar wyer gelees moet word in verband met party vakke. Dit wil voorkom asof baie studente steeds ontoe' reikend voorberei word vir die eksamen.


E K S A M I N A T O R E

1 6 . Ondergenoemde here het as Eksaminatore opgetree:

W alker, R. S., b.com., g.i.m.t.r.(s.a .), a .s.a .a .,C .A .(s .A .) , A .G .I.S ., A .I.A .H ............................................ Kaapstad Rekeningkunde

G riffin, W . F., g.i.m.t.r.(s.a .), c .a .(s.a .) Kaapstad Rekeningkunde

Louw, E. J ., c .a .(s.a . ) ....................................... Kaapstad Rekeningkunde

G len, N., c .a .(s.a .), f.s.a .a . . - . Johannesburg . Ouditkunde

G O RVEN , O. D., B.COM ., G .I.M .T .R .(s .A .), A .G .I.S ., A .C .W .A ...................................................................................... Durban Ouditkunde

L indsay, B. C., b.ekon., a .g.i.s. . Johannesburg .

1

Bankwese en Openbare

Tees, D. G., b.com., g.i.m.t.r.(s.a .), a .g.i.s.,Finansies

G .I.A .H ., A . C . W . A . .................................................... Pinetown HandelsrekeneMatthews, J. W ., b.com., a .i.m.t.r.(s.a .) Johannesburg . Kosteberekening

Hutt, Prof. W . H., b.com.(lond.) UniversiteitKaapstad . Ekonomie

Holmes, I. Q., m.com., d.phil., g.i.m.t.r.(s.a .) Johannesburg . Finansies van Plaaslike

J envey, F. E., b.com., g.i.m.t.r.(s.a .) Port ElizabethBesture

Finansies van Plaaslike Besture

C oWDEN, J. W ., B .A ., B.COM ., G .I.M .T .R .(s .A .) , Springs Finansies van Plaaslike

Burchell, Prof. E. M., m.a.(cantab), ll.bBesture (Opstelle)

( s . A . ) ................................................................. UniversiteitNatal Handelsreg

Nolte, J . H., ll.b...................................... Port Elizabeth MunisipaleregC arine, W ., b.com., g.i.m.t.r.(s.a .), a .g.i.s. . Johannesburg . StatistiekMnr. E. J . Louw was aangestel as bykomende/eksaminator van Rekeningkunde.

17 . Die Raad w il aan elkeen van hierdie here sy dank en waardering uitspreek vir die werk wat hulle in verband met die opstel en nagaan van die vraestelle verrig het.

18 . Die Raad wil 00k graag sy dank te boek stel vir die hulp wat ver' skillende lede van die Instituut en andere verleen het, deur huisvesting in die goedgekeurde sentrums te verkry, as opsieners op te tree, en in ander opsigte hulpvaardig te wees.

[ 1 2 8 ]

IV .— L I D M A A T S K A P R E G I S T E R

A .— T o e l a t in g s

19 . A s s o s i a a t l e d e .— Ondergenoemde applikante het in die finale eksamen van die Instituut geslaag en is tot Assosiaatlidmaatskap toegelaat:


Aldis, A . S. . Port ElizabethBotha, P. J. B. . . . . DespatchFry, E. H. . VishoekGeyer, D. A . KaapstadKruger, B. J . . KlerksdorpLombard, R. JohannesburgPickerill, T. F. . . . . Oos-LondenPienaar, A . J. . . . . JohannesburgRichardson, R. F. Johannesburgvan den Berg, W . J. . . . . Brakpan

B .— O o r p l a s i n g s

20. Die volgende oorplasings is goedgekeur:Haugen, H. E. Durban . Van Assosiaatlid (Spesiale Klas) na

AssosiaatlidC oomer, J. H .. Kaapstad . . . Van Assosiaatlid na Assosiaatlid

(Spesiale Klas)Hornby, J. . Salisbury . . . Van Assosiaatlid na Assosiaatlid

(Spesiale Klas)Robertson, W . D. H. Pretoria . Van Assosiaatlid na Assosiaatlid

(Spesiale Klas)W illiams, G. R. . Engeland . . . Van Assosiaatlid na Assosiaatlid

(Spesiale Klas)

C .— B e d a n k in g s

2 1. Kennis is geneem van die volgende bedankings:Marsden, A . . . Johannesburg . . Assosiaatlid (Spesiale Klas)

D .— A f g e s t o r w e n e

22. Die Raad neem met leedwese kennis van die afsterwe op 13 Mei 1963, van Mnr. Robert D u ff Chambers, Oos Londen. Mnr. Chambers was ’ n Genoot van die Instituut.

E.— S t u d e n t e /l i d m a a t s k a p

23. Kragtens Artikel 26 van die verordeninge is ses'emtwintig studente tot Studentedidmaatskap van die Instituut toegelaat, nadat hulle o f in die Intermediêre eksamen geslaag het o f daarvan vrygestel is. Tien vorige lede is, nadat hulle in die finale eksamen geslaag het, tot Assosiaatlede toegelaat en vier ander het om verskillende redes hul lidmaatskap beëindig.

[ 1 2 9 ]


F.— E r E 'L i d m a a t s k a p

24. Kragtens Artikel 2 1 van die Statute het die Raad eememtagtig verteenwoordigers wat plaaslike besture en ander genomineer het, tot erelede vir 1963^64 benoem.

G .— L e d e t a l

25. O p 31 Januarie 1964 was die ledetal van die Instituut, met inbegrip van Studente/ en Erelede as volg:

Genote Assosiate Stuiente Totaal

Erelede . . . . . . .Lede op 31 Januarie 1963Toelatings . . . . . .

30 23 710

82

Min. Bedanking en afgestorwene30 2 47

2

30 245 2 75

Studentelede op 31 Januarie 1963 Toelatings . . . . . .

13526

Min. Oorplasings en BedankingsI6l

14 147

504

V .— S T U D E N T E W E R E N IG IN G S

26. Dit blyk uit verslae wat van die verskeie Studenteverenigings ontvang is dat daar gedurende die jaar geringe verbetering was in die getal lede.

27. Sommige van die Verenigings het gereeld vergadering gehou waarop lesings en toesprake van die gewone hoë gehalte gehou was. Die gemiddelde bywoningsyfer toon geen verbetering op die van verlede jaar nie.

28. Bibliotekarisse vermeld die aanskaffing van nog meer waardevolle handboeke en naslaanwerke en aantreklike biblioteek geriewe vir lede word steeds aangebied.

29. Die finansies van al die verskeie Studenteverenigings is steeds in ’ n bevredigende toestand.

V I .—M E M O R A N D U M S W A T D IE I N S T I T U U T O P G E S T E L H E T

30. O p versoek van die Verenigde Munisipale Bestuur van Suid^ A frika het die Instituut Memoranda gepubliseer onder die volgende hoofde:

Bantoe Inkomsterekening: Koste van Administrasie.

[ 130 ]

Bronne van Inkomste van Plaaslike Owerhede en sommige Nie^ eiendoms belastings.

Die Verkoop van Onroerende Eiendom ooreenkomstig ’n Huurkoop/ kontrak.

Spoorweg Sylyne na Nywerheidsdorpe.

Yerandering in die Inhoud en Grootte van Muntstukke.

V I I —J A A R K O NFEREN SIE3 1. Die Vier/emdertigste Jaarkonferensie van die Instituut is vanaf 1

tot 4 A p ril 1963 in Salisbury, Suid'Rhodesië gehou. Talle lede en afgevaar/ diges van die Republiek, Suidwes^Afrika en die Federasie van Rhodesië en Njassaland het die konferensie bygewoon. Die referate wat gelewer is, was weereens van die hoë gehalte wat gewoonlik op die Instituut se kom ferensies gelewer word en hulle het waardevolle besprekings uitgelok. Die Burgemeester en die Stadsraad van Salisbury het alles in hulle vermoë gedoen om die byeenkoms ’n sukses te maak, wat betref die reelings vir die konferensie self en die gerief en vermaak van die afgevaardigdes en besoekers.

32. Sy Edele die Federale Minister van Handel en Nywerheid, mnr.J . A . C lark, het die konferensie geopen.

V III.—W E T G E W IN G G ED UREN D E DIE J A A R33. Daar is gedurende die jaar ’n klein hoeveelheid wetgewing van ’n

finansiële aard, waardeur Plaaslike Besture geraak word, uitgevaardig. Daar behoort van onderstaande ordonnansies kennis geneem te word.

RepubliekNo. 1.— Wysigingswet op die Strandgebied, Kaapstad, 1963. Tot wysiging van

die Wet op die Strandgebied, Kaapstad, 1950, en bevat die bepalings waar/ volgens grond o f eiendom wat deel van die Strandgebied uitmaak en wat oorgedra is o f verhuur word, deur die Afdelingsraad van die K aap belas/- baar is.

No. 6.— Wysigingswet op Inkomstebelasting, 1963. O m die wetsbepalings betreffende inkomstebelasting te wysig en voorsiening te maak vir belasting wat deur werkgewers van die besoldiging van werknemers afgetrek moet word. (L .B .S .) .

Die KaapprovinsieNo. 6.—Ordonmnsie op Plaaslike Owerhede ( Ontwikkeling volgens Gemeen'

skap), 1963. Om voorsiening te maak vir die instelling van Raadplegende Komitees, Bestuurskomitees of Plaaslike Owerhede vir sekere GroepS' gebiede of gedeeltes daarvan, en om voorsiening te maak vir aangeleenthede in verband daarmee.


t 131 ]

N a ta l

N o . 10 .— Leningsordonnansie van die Gesondheidskomitee van Kranskop, 19 63, om leningsbevoegdhede aan die gesondheidskomitee van Kranskop te ver^ leen.

N o . 1 1 . — Leningsordonnansie van die Gesondheidskomitee van Gingingdlovu, 19 63, om leningsbevoegdhede aan die gesondheidskomitee van Gingingdlovu te verleen.

N o . 1 2 — Leningsordonnansie van die M m isipalite it Vryheid, 19 6 3, om lenings/ bevoegdhede aan die Stadsraad van die Munisipaliteit van Vryheid te verleen.

N o . 13 .— Leningsordonnansie van die Gesondheidskomitee van Botha’s H ill, 19 6 3, om leningsbevoegdhede aan die Gesondheidskomitee van Botha’s H ill te verleen.

N o . 19 .— Ordonnansie op die Uitgebreide Bevoegdhede en Lening van N e w G e r ' many, 19 6 3 , waarby verdere of uitgebreide bevoegdhede, met insluiting van leningsbevoegdheid, aan die Munisipaliteit New Germany verleen word.

N o . 16 .— Leningsordonnansie van W estville, 19 6 3 , waarby daar meer lenings^ bevoegdhede aan die Stadsraad van die Munisipaliteit W estville verleen word.

N o . ly .— Leningsordonnansie van Eshow e, 19 6 3, om verdere leningsbevoegd' hede aan die Stadsraad van die Munisipaliteit Eshowe te verleen.

N o . 18 .— Leningsordonnansie van die Gesondheidskomitee van Ixopo, 1963 om leningsbevoegdheid aan die gesondheidskomitee van Ixopo te verleen.

N o . 1 9 .— Wysigingsordonnansie op die Uitgebreide Bevoegdhede van D urban, 1963, waarby verdere of uitgebreide bevoegdhede aan die Stadsraad van die stad Durban verleen word, sekere ordonnansie gewysig word en voorsiening gemaak word vir aangeleenthede in verband daarmee.

Oranje Vrystaat

N o . 1 3 .— Wysigingsordonnansie op Plaaslike Bestuur, 19 6 3 , waarby die Or-- donnansie op Plaaslike Bestuur, 1962, gewysig word, met betrekking tot, die stigting van ’n reserwefonds, tussentydse waardering en belasbare eiendom.

Transvaal

N o . 7.— Wysigingsordonnansie op die Belasting van Plaaslike Besture, 19 6 3 , waarby die Plaaslike Bestuur Belastingordonnansie, 1933, gewysig word deur die woorde pond, sjieling en pennie te vervang met benaminge van die desimale stelsel.


[ 132 ]

No. 19.— Wysigingsordonnansie op Plaaslike Bestuur, 1963, waarby die O rdoiv nansie op Plaaslike Bestuur, 1939, gewysig word, t.o.v. die bou, sloping, reparasie o f verandering van enige gebou.

I X .—D IE S U I D 'A F R I K A A N S E T E SO U R IE R THE S O U T H A F R I C A N T R E A S U R E R

34. Die Raad wil graag sy dank uitspreek teenoor die lede van die Redaksiepersoneel van Die Suid'Afrikaanse Tesourier/The South African Treasurer en 00k teenoor die plaaslike korrespondente wat die Ere^redakteur baie gehelp het met die voorbereiding van die tydige uitgawes van die blad wat elke maand gereeld uitgegee is.

35. Dank is 00k verskuldig aan korrespondente, sommige van wie gereeld, ander sporadies, bydraes gelewer het, wat wesenlik gehelp het om lede op hoogte te hou van huidige rigtings. A lles in aanmerking geneem skram die groot gros individuele lede egter weg van hierdie klankbord waarmee beoog word om hulle persoonlike sienswyse, hulle ondervinding en probleme aan ’n wye leserskring bekend te maak.

36. U it die aard van die saak ontvang ’n tydskrifvir spesialiste somtyds ’n vloed van stof en somtyds is daar ’n skaarste. Gevolglik moet deeglike en interessante stof somtyds op sy gesit word omdat dit nie aktueel is nie, by ander geleenthede is die gehalte van ’n uitgawe geneig om oneffe te wees. Dit nieteenstaande word ’n hoë standaard gehandhaaf en die Ere^-redakteur het die Raad versoek om al die persone wat dit moontlik gemaak het, hartlik te bedank.


X .—R E K E N I N G S T A A T

37. Die Ere/tesourier se Rekeningstaat vir die jaar wat op 31 Oktober 1963 geëindig het, is by hierdie verslag aangeheg.

38. Dit doen die Raad genoeë om sy dank te betuig aan mnre. R . M. Reid en L . C . Lister wat as Ere/ouditeurs opgetree het.

Geteken namens die Raad,

H . R . M A R T IN , PresidentS. C . G O O C H , Sekretaris

[ 1 3 3 ]

[134]

G e s a m e n t l i k e B a l a n s s t a a t o p 3 1 O k t o b e r 1 9 6 3

IN STITUUT V A N MUNISIPALE TESOURIERS EN REKENMEESTERS, S .A . (GEÏNKORPOREER)

1961-62 R c

3,904.72438.52

20,000.00

200 00 10.07

33.60

8,029.18

5,443.50

R38,059.59

LASTE

D iverse Skuldeisers Algemene rekening . Suid-Afrikaanse Tesourier .

A lgemene R eserwefonds Trustfondse

Maldwyn Edmund Kapitaal Opgelope rente

Gesamentlike K omitee van Studente-ver- ENIGINGS, I.M.T.R.

Opgehoopte F onds Algemene rekening—

Saldo op 31 Oktober 1962 Plus oorskot vir 1962-63

Suid-Afrikaanse Tesourier— Saldo op 31 Oktober 1962 Plus oorskot vir 1962-63

R c

3,809.00117.59

R c

3,926.59

1961-62 R c 2 .0 0

823.02507.20

2 0 ,0 0 0 .0 0

2 0 0 .0 016.07

200 00 10.07

216.07

33.60 249.67 33.60

8,029.18 2,445.50

28,500.002,467.74

10,474.68

5,443.50197.42

4,000.001,103.37

5,640.9216,115.60 141.14

271.45

R40,291.86 R38.059.59

BATES

M eubels en Toebehore D iverse Skuldenaars

Algemene Rekening . Suid-Afrikaanse Tesourier .

Trustfondse Maldwyn Edmund

Effekte, Republiek van S.A. 3 1957-66 . . . .

Banksaldo

G esamentlike K omitee van Studente-ver enigings, I.M.T.R.

Banksaldo . . . . .

Beleggings Algemene R ekening

Munisipale effekte . . . . Spaarrekening: Bougenootskap

Suid-Afrikaanse Tesourier—Vaste deposito’s: Bougenootskap Spaarrekening: Bougenootskap

B anksaldo en K ontantsaldo Algemene rekening . Suid-Afrikaanse Tesourier .

R c R c 2 .0 0

956.75384.74 1,341 .49

t,2 0 0 .0 0

16.07

216.07

33.60 249.67

. 28,500.00

. 4,347.81

32,847.81

4,000.00 . 1,140.26

5,140.26 37,988.07

477.12233.51 710.63

R40,291.86

„ „ ° ' 1S doen verslag dat ons die boeke, rekenmgs en bewysstukke van die Instituut van Munisipale Tesouriers en Rekenmeesters, S.A. (Gefnkorporeer) vir die jaar wat op 31 Oktober 1963 geemdig het, nagegaan het. Ons het onsself daarvan oortuig dat die sekuriteite wat in bostaande Balansstaat aangegee word, bestaan. Behoorlike boeke en rekeninge is aangehou en al die mligtmg en verduidelikings wat ons verlang het, is aan ons verstrek. Na ons mening is bostaande Balansstaat behoorlik opgestel sodat dit sover ons weet en na aanleidmg van die verduidelikings wat aan ons verstrek is en soos dit uit die boeke van die Instituut op 31 Oktober 1963 blyk, ’n ware en juiste weergawe van die Instituut se nnansiele stand is. 6

(Getekeri) I. Q. HOLMES, m.com., d .phil., g .i .m.t .r .(s.a .), Ere-tesourier J ohannesburg, 21 November 1963

(Geteken) R. M. REID, b.com., g .i .m.t.r .Is.a .) 1 „ ,.L. C. LISTER, a .i .m.t .r .(s.A.) Ere-oud,tears

[135]

IN STITUUT V AN M UNISIPALE TESOURIERS EN REKENMEESTERS, S.A . (GEÏNKORPOREER)

INKOMSTE' EN UlTGAWEREKENING VIR DIE JA A R WAT OP 3 1 O k TOBER 1963 G e ËINDIG HET

ALGEMENE1961-62 UITGAWE

R c R c1,318.50 Salarisse en honorariums . . . . . 1,318.50

798.64 Skryfbehoeftes en kantooruitgawe . . . . . 812.46296.75 Reis-en verblyfstoelaes . . . . . . 278.36

3,246.85 Konferensiekoste . . . . . . . . 3,438.44— Ledegeld afgeskryf . . . . . . . 3.00

2,740.76 Oorskot na Opgehoopte Fonds oorgeplaas . . . 2,445.50

R8,401.50 R8.296.26

REKENING1961-62 INKOMSTE

1,889.25 Inskrywingsgeld en ledegeld . . . . . . 1,959.503,160.50 Bywoningsgelde, konferensie . . . . . . 2,654.40

972.00 Verkoop van konferensieverrigtinge . . . . 987.50314.18 Verkoop van publikasies . . . . . . 483.20

1,729.42 Rente op beleggings . . . . . . . 1,747.9732.50 Onderskryfkommissie en korting . . . . . —

8.40 Skenkings . . . . . . . . . 2.10295.25 Oorskot—Eksamenraad . . . . . . 461.59

R8.401.50 R8.296.26

EKSAMENRAAD1961-62 UITGAWE 1961-62 INKOMSTE

R c R c R c R c R c333.60 Salarisse . . . . . . . 300.00 1,237.95 Eksamengelde . . . . . . 1,587.6081.15 Skryfbehoeftes en kantoor uitgawe 266.91 44.65 Verkoop van eksamenvraestelle 44.40

144.50 Reis- en verblyfstoelaes . . . . E k s a m in a to r e g e ld ....................................... 770.10

137.90

Min: Gelde wat kragtens artikel 7 van die407.10 Memorandum nie betaalbaar is nie . 325.50 444.60

2 1 .0 0 Instituut prys . . . . . . 2 1 .0 0295.25 Oorskot—na Algemene Rekening oorgeplaas . 461.59

Rl,282.60 Rl,632.00 R 1,282.60 R 1,632.00

„SUID-AFRIKAANSE TESOURIER”1961-62 UITGAWE 1961-62 INKOMSTE

R c R c R c R c31.50 Honorariums . . . . . . 10.50 1,336.23 Ledegeld . . . . . . . 1,368.79

3,013.70 Drukwerk en skryfbehoeftes . . . . 2,979.26 1,8 2 1 .6 0 Advertensies . . . . . . 1,872.0088.31 Algemene onkoste . . . . . 89.28 232.49 Rente op beleggings . . . . . 2 1 0 .6 6

172.99 Agentekommissie . . . . . 168.89 .78 Diverse inkomste . . . . . . 1.409.30 Oninbare skuld afgeskryf . . . . 7.50

75.30 Oorskot—na Opgehoopte Fonds oorgeplaas 197.42

R3.391.10 R3.452.85 R3,391.10 R3.452.85

Ons doen verslag dat sover ons weet en na aanleiding van die inligting wat aan ons verstrek is, bostaande Inkomste en Uitgawerekening ’n ware weergawe is, van die inkomste en uitgawe van die Instituut van Munisipale Tesouriers en Rekenmeesters S.A. (Geïnkorporeer) vir die jaar wat op 31 Oktober 1963 geëindig het.

(Geteken) I. Q. HOLMES, m.com., d . p h i l . , g .i.m.t .r .(s.a .), Ere-tesourier (Geteken) R. M. REID, b.com., g .i .m.t .r .(s.a .) \ FJ ohannesburg, 21 November 1963 L. C. LISTER, a .i.m.t .r .(s.a .) /

T h e P r e s i d e n t : Under paragraph io , gentlemen, I draw your attend tion to the fact that thirty^five examinees failed to present themselves for examination on this occasion. Last year the figure was twentyTour. Now, I would just like members of the Institute to bear that in mind, to the extent that it is possible for them to encourage these people as the examinations draw near, and I am sure the Council itself w ill be grateful to you.

M r . R . S. W alker (C ity Treasurer, Cape T ow n): Mr. President, under paragraph n , in view of what you have just remarked, that thirty^five candidates failed to present themselves, do I take it that those thirty-Eve are included in the figure of 169 or not, because it would make a big difference to the statistics if I knew that point.

T he Se cre ta ry : Mr. President, through you, these thirty^five candidates are included in the initial figure of 2 1 1 . O f that number, thirteen withdrew, one resigned from M unicipal service and one became ineligible to write, while 35 failed to present themselves, leaving a figure of 16 1 who actually presented themselves for examination.

T he P resident : Still in paragraph 11 itself, and coming now to the Final Part II examination, I think most of you w ill notice with considerable satisfaction the results in respect of W indhoek, SoutlvW est Africa. I do not know what the technique is there, but I think you w ill agree with me that it is a pretty fine effort to secure four passes.

T he P resident : Referring to paragraph 22, gentlemen, in addition to reporting the death o f Mr. R . D . Chambers, I have to report the death o f Mr. R . F. B. (Roley) Davis, who was formerly the Tow n Treasurer o f Springs. He was a foundation member o f the Institute and a Fellow until he resigned in 1950. May I ask you to rise and pause for a minute. Thank you, gentlemen.

M r . I. A . B. G a l l e t l y (Salisbury): Mr. President, arising from my comments last year, I would like to heartily endorse the statement under paragraph 34 and add my own congratulations to the editorial staff o f The South African Treasurer for the manner in which they have again pro-- duced the journal monthly and promptly on time.

T he P resident : In connection with paragraph 37, the Secretary has received two letters from Mr. A . A . Pletnick, Durban, who is an Associate member of the Institute. In the first letter he draws attention to the amounts o f the G eneral Reserve F und (R 20 ,o o o ) and A ccu m u la ted Fund (R 16 .115 .6 0 ) , which are substantial amounts and likely to increase still further if the various Income and Expenditure Accounts are any indication. In his second communication Mr. Pletnick expresses his perturbation at the large accumulation of funds and desires information as to the purpose to which such funds w ill be put.

R eport of the C ouncil-—D iscussion

[ ' 36 ]

Mr. Pletnick has asked that his letters be brought to your notice, and I think the best way to deal with the matter is to ask the Honorary Treasurer to give you a brief indication of the adequacy or otherwise of these holdings.

D r . I. Q . H olmes (C ity Treasurer, Johannesburg, Honorary Treasurer of the Institute): Mr. President, in Mr. Pletnick’s first letter he merely points out the fact that we have this fairly reasonable balance; he does not indicate or give any ideas as to what we should do with it.

In his second letter he says he is perturbed at the size o f the balance. N ow , I could understand a man being satisfied and pleased about this substantial balance but I cannot understand his being perturbed about it. Nevertheless, as I have said on previous occasions when this issue has been raised, and as it was pointed out in the editorial o f the A p ril, 1964 issue o f T he South A frican Treasurer, we are operating the secretarial work o f the Institute on a very largely subsidised basis. In other words, we get certain facilities from different local authorities which enable us to carry out our activities at a very nominal cost.

A s pointed out in the last paragraph of the editorial, which was referred to by his Honourable the Administrator yesterday, this Institute must look to the time when it must have a full secretarial staff which can take care of not only the secretarial duties of the Institute but also T he South A frican Treasurer and the examinations, and possibly undertake some of the work which was mentioned yesterday in the statistical and research fields. Obviously, to do that we have to have a sort of general reserve or an endowment, the interest of which would enable us to meet the expenses involved. A s things are, with our modest membership and the modest annual subscriptions, we simply could not face up to that position, but I hope we can build up to it, so that we can provide these facilities for our membership and in the interests of local government later on. I think that should be an adequate answer to Mr. Pletnick’s perturbations.

T he P resident : Gentlemen, I suggest that in the light of the explanation given by the Honorary Treasurer, we record the correspondence.

N ow , coming back to paragraph 37 itself, are there any other questions which members would like to address, through me, to the Honorary Treasurer in respect o f the Accounts for the year ended 31st October, 19 6 3 ’

In those circumstances, may I ask somebody to move formally the adop/ tion of the Accounts and Report of the Council.

M r. A . D. H eighway (Town Treasurer, Benoni): I move the adoption of the Accounts and Report of the Council.

M r . C . J . D e K ock (K lerksdorp): I second the motion.

Report of the C ouncil—D iscussion (continued)

[ 137 ]

T h e P r e s i d e n t : It has been moved and seconded that the Accounts and Report o f the Council be adopted. D o you all agree?

Agreed.

T h e P r e s i d e n t : I am sure that under paragraph 38, the working party will have no objection to our recording our appreciation yet again.

G e n e r a l B u s i n e s s

T h e P r e s i d e n t : W e now come to the last item on the Agenda, which is General Business, and there are two matters which I would like to bring to your notice.

The first item I would refer to under General Business is to express the thanks o f the Institute generally to Mr. R . S. W alker for the considerable amount o f time which he has spent in arranging for the supply o f the Institute tie.

W e are also indebted to Mr. J . W . Cowden for an excellent description o f the tie.

N ow , gentlemen, the second item which I have to bring up is, I am afraid, a sad matter.

Mr. Gooch, our Secretary for the past almost ten years, has indicated to us that he would wish to lay down the tools o f office and to be relieved. Your Council, and I am sure you too, gentlemen, realise that the loss o f Mr. Gooch’s services is a very serious blow to the welfare o f our Institute. W e have endeavoured to reason with him, but as Mr. Gooch said, he has devoted a lifetime to work and he feels that the stage has now been reached where he is entitled to some relaxation. The Council itself will be considering this matter from the administrative point o f view at its next meeting on Thursday, and I would like to take this opportunity o f saying that i f any member o f the Institute feels that, between now and then, he has a proposition or a suggestion to make to us, we would be most gratified to receive it. W e believe, and I am sure you agree with me, that it is going to be an extremely difficult task to replace a gentleman o f Mr. Gooch’s calibre.

Mr. Gooch, I wonder i f you would now like to take the opportunity o f just expressing your feelings to the members o f the Council here today?

Mr. S. C . G o o c h (Secretary o f Institute): Mr. President, I thank you for the opportunity o f saying a few words. I do not think there is very much I need say because the majority o f the members here know me.

A s the President said, I have been associated with the Institute’s work for nearly ten years. They have been ten very happy years, and my relationship with the Institute Council and the Institute Members has always been a very cordial one.


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Whatever my appearance may indicate, I certainly do not feel decrepit; but recent indications are that I should ease up a bit. I have now been work/’ ing for practically fifty/seven years without a break. Furthermore, the Insti/ tute w ill, no doubt, benefit by having a younger, and probably more enthusiastic, Secretary.

I am not out of office yet, and my thanks may be premature; but, in case I do not see you gentlemen at the next annual conference, I do thank you all now for your support and your friendship during the past approximately ten years.

M r . A . F. Bevan (Durban North): Mr. President, from the floor I would like to express our appreciation for the services rendered by Mr. Gooch to this Institute. A s you all know, I have some knowledge of the work involved, although my period of secretaryship was much easier than his. I would like to convey to him our sincere thanks for his work for the Institute.

T he P resident : Gentlemen, although Mr. Gooch is relinquishing his secretarial duties, of course he remains a member of the Institute, and I can assure you now that we expect to see him on every possible occasion in the future.

On behalf of the Council and the Institute itself, I do pay tribute to your sterling services and I hope, Mr. Gooch, that in the period that lies ahead of you, you w ill really enjoy your leisure to the maximum extent.

M r . G ooch (Secretary): Thank you, Mr. President.

T he P resident : N ow, gentlemen, that clears the items which I had under General Business and gives the floor an opportunity to raise any matters which it might have in mind.

M r . O. D. G orven (C ity Treasurer, D urban): Mr. President, it is unusual to specially welcome any person to this gathering, but I see amongst us today Mr. Errol Drummond, who has not been with us for a number of years having got away from local government a great many years ago. I was astounded a few months ago, when talking to Mr. Drummond, to find the obvious interest which he had in this Institute. He could talk almost as if he was one of the Council members, and I got a couple of raps over the knuckles for not ensuring that more Durban men entered the examinations and got through, and his presence here today is evidence of his interest in this Institute.

Mr. Drummond, your many personal friends here w ill welcome you themselves in a few minutes, I know, but may I, on behalf of the remaining members of the Institute, and particularly your friends who are not here

R eport of the C ouncil—D iscussion (continued)

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today, welcome you very cordially to this meeting and say how glad we are to see you.

M r . E. P. D rummond (Johannesburg): Mr. President, Mr. Gorven, thank you very much indeed for your very kind welcome. The only reason why I came along was, of course, because the Conference was being held in Pretoria. Every year I read studiously the Proceedings of Conferences, which are of a very high level. Thank you.

T he P resident : Thank you, Mr. Drummond.

M r . A . D. L ofting (C ity Treasurer, Grahamstown): Mr. President, just a minor matter. In view of the enormous accumulation of funds of our own, I wonder if Memoranda prepared by the Institute could not be sent out to members free of charge.

T he P resident : I can assure you that this very competent Honorary Treasurer on my left w ill give you an immediate analysis of our cost struct ture, and I am quite certain he w ill convince you that you cannot have Memoranda gratis. W ould you like to speak, Mr. Treasurer;

D r . I. Q . H olmes (Honorary Treasurer): Yes, Mr. President. Mr. Lofting has jumped in ahead o f me. I was just waiting for an opportunity to say a few words which, I think, cover Mr. Lofting’s point. W e are kept busy preparing various Memoranda for distribution. The latest issue is the second volume o f a publication containing the Memoranda we have sub' mitted to the United Municipal Executive o f South A frica for the Local Authorities Committee, 1956 (the Borckenhagen Committee). It is now ready, and obviously mindful o f the Institute’s finances and as your Honorary Treasurer, I would like to see as big a sale o f that publication as possible.

W e also have ready for distribution the latest volume (Volume 6) of the Compendium of Accounts, containing questions and model answers, on M unicipal Accounting (F inal Part II). Further, this year we are about to publish — thanks to our examiners in the Intermediate Accounting papers, Mr. Griffin and Mr. Louw, assisted by Mr. W alker — questions and model answers for Accounting I and Accounting II in the Inter' mediate examination. I am sure that this step w ill be most useful to students, particularly as last year the results of the Intermediate examination were not very encouraging. I feel, and I know M r. W alker w ill endorse the view, that these published questions and model answers are going to be of great benefit to students for the Intermediate examination, and I would ask you all to encourage the purchase of these publications, both individually as

Report of the C ouncil—Discussion (continued)

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members and by your local authorities. There is a lot of work and expense involved; we must cover the cost, and we hope at the price fixed to make a reasonable profit for the Institute and so help to build up its funds. Thank you, Mr. President.

T h e P r e s i d e n t : Gentlemen, I take it that there are no further questions from the floor. That being the case, we now conclude the business of this meeting.

I want to thank you very much indeed for your attendance here today and the attention which you have given to the affairs of the Institute. I now duly declare this meeting closed. Thank you.


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Second Day—Tuesday, 14th April, 1964.MORNING SESSION RESUMED.

T h e P r e s i d e n t : Good morning ladies and gentlemen. Goeiemóre dames en here.

This morning we are to have an address by Councillor P. R . B. Lewis, A cting Chairm an of the Management Committee of Johannesburg and a member of the Transvaal Provincial Council, on Parkinson’s Law .

Councillor Lewis has twice represented Johannesburg at the Congress of the International Union of Local Authorities, and in 1961 he was awarded the United States Leader Exchange Grant, spending several months studying local government in North America. He is regarded as a leader in the field of NomEuropean affairs and I am told that he has two cardinal principles. He is impatient of inefficiency or waste, and he believes that getting on with the job is the main thing. I think, in these circumstances, we are promised an extremely interesting debate, and I am quite sure that when I send in his attackers he w ill deal with them most effectively.

Councillor Lewis please.C o u n c i l l o r P. R . B. L e w i s (Johannesburg): Mr. President, I do

want to thank you for your kind words of introduction. I believe it is not often that councillors are asked to deliver papers at your conferences. I trust that the chance that you have taken on this occasion w ill not mean that no councillor is ever asked again to address such an august gathering. I am just hoping that my reward for preparing this paper w ill not be that I w ill have antagonised the few friends I may have. Perhaps the next coum cillor w ill be asked to speak on how to w in friends and influence people.

Mr. President, I do not know if there is any particular significance in the fact that at the top of my paper these words are printed: “ The Institute is not as a body responsible for, or necessarily in agreement with, the views and opinions expressed by authors of papers.”

COUNCILLORS AND OFFICIALS AS SEENBY PARKINSON

1. The M unicipal officials amongst you w ill, I am sure, agree that Councillors talk too much — and with that I agree, because at the last Treasurers’ Conference held at Salisbury, I opened my mouth too wide, and poked fun at officials in the august presence of your President, and mentioned something about Parkinson’s L aw . I then started chasing a wee white ball in the rough, and, bad as that was, worse was to follow ! I found on returning to the Clubhouse, that your President and Dr. Holmes had

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joined forces against me, and decided that I should be asked to provide some comic relief at this Conference by giving a paper on Parkinson’s Law .

2. A s you know, no Councillor likes to have to work, but on reflection, I am grateful to your President for asking me to undertake this assignment, for while at the beginning I regarded Professor Parkinson as poking fun, on re-reading his works I have realised how much basic truth there is in his writing.

3. Parkinson states that he first discovered the law during W orld W ar II. This law is that work expands to fill the time available for its completion, and administrators multiply by a law of growth irrespective of the work, if any, they supposed to do. General recognition of this fact is shown in the proverbial phrase “ it is the busiest man who has time to spare” .

4. A s a first example of the correctness of this law , I would like to state that your President gave me as a D-Day for this Paper, the 15th December. In A p ril I thought that was giving me ample time to prepare, but only by working all hours in December has it been possible for me to get it finished on time.

5. Parkinson gives a wonderful illustration of this law — that work expands to fill the time available to do it — when he tells of an elderly lady of leisure spending an entire day in writing and despatching a postcard to her niece. A n hour w ill be spent in finding the postcard, another in hunting for spectacles, half an hour in a search for the address, one and a half hours in composition, and twenty minutes in deciding whether or not to take an umbrella when going to the pillar box in the next street. He says the total effort would occupy a busy man three minutes, while the elderly lady, at the end of the day, felt prostrate after a day of doubt, anxiety and toil.

6. A n illustration of the fact that administrators multiply by a law of growth irrespective of the work, i f any, they are supposed to do, is the sort of thing that happened in W orld W ar II. It is the story of a Corporal who is given a special job of interpreting air photographs. He is allocated a desk, and settles down to interpret air photographs. Two days later he comes back and says he needs another Corporal to help him do this. Three days later, having got his assistant, he comes back and says, “ I need to be a Sergeant in order to have authority over my assistant” . So he gets his own way about that, and six months later he is a Lt. Colonel with a staff of 150. In peace time things do not happen quite as fast as that.

7. One of Parkinson’s earliest researches was in connection with the British Navy Estimates. He chose them because the A dm iralty’s responsibilities are more easily measurable than those of some other Departments,

C ouncillors and Officials as seen by Parkinson (cont.)

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dealing merely in numbers and tonnage. The figures show that in 19 14 the strength o f the Navy was:

146,000 Officers and Men3,249 Dockyard Officials and Clerks, and

57,000 Dockyard Workmen

but by 1928 the number o f officers and men had been reduced to 100,000 and only 62,439 workmen, but that dockyard officials and clerks had increased in number, while the strength in warships was a mere fraction of what it had been in 19 14 , fewer than 20 capital ships in commission compared with 62 in 19 14 , but over the same period Adm iralty officials had increased in number from 2,000 to 3,569- Apparently the criticism voiced at the time centred on the ratio between the number o f those available for fighting and those available only for administration, it being said that Britain had “ a magnificent navy on land” . The point to note, however, is that the 2,000 officials o f 19 14 had become the 3,5^9 o f 1928, an increase o f 78.45 per cent over a period o f 14 years, and this growth was unrelated to any increase in their work, because the Navy, during that time, had diminished by a third in men and two-thirds in ships, and it wasn’t expected that its strength would increase, because its total o f ships was limited by the Washington Naval Agreement.

8. H ow , Parkinson asks, can this rise in the total number o f civil servants be accounted for except on the assumption that such a total must always rise by a law governing its growth. During the period there was rapid growth in the development o f naval techniques, and one might not wonder at an increase in draughtsmen, designers, technicians and scientists, but these, the dockyard officials, increased by only 40 per cent in number as compared with an increase o f nearly 80 per cent in number o f the men in Whitehall. It appeared that for every new foreman there had to be two more clerks in Whitehall, and from this one might be tempted to conclude, provisionally, that the rate o f increase in administrative staff is likely to be double the technical staff at a time when the actually useful strength (seamen) is being reduced by 31.5 per cent. But, says Parkinson, it had been proved that this last percentage is irrelevant because the officials would have multiplied at the same rate had there been no seamen at all, and he says it would be interesting to follow the further progress by which 8 ,118 Adm iralty staff o f 1935 came to number 33,788 by 1954-

9. Parkinson believes that the basic cause o f this multiplication is that the Executive’ s interest is always to multiply subordinates rather than rivals. I f I am an administrator, and I begin to feel overworked, I think it is because I have more work to do — actually, it is either because I am getting older, or, perhaps, even because o f decreasing energy. I could divide the work in


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two and call in another administrator to do ha lf of it. I f I were A and he were B, the work would thus be shared between A and B. But I don’t do that, because if I brought in B on my own level there would then be a question as to which of us should succeed the man senior to us both, we’ll call him X , when X at last retires. That does not suit me at all. So instead of bringing in B on my own level, I prefer to appoint two subordinates, C and D, at a lower level, and I can keep them both in order because each is terrified that the other w ill succeed me when I succeed X . A nd , of course, they follow my good example, and when C and D in their turn feel overworked, they call in two subordinates each, and so we get E and F and G and H , and by that stage we have seven people doing the work previously done by one, and this w ill surely mean promotion for A . A ll are working hard, and the original one, A , is working harder than ever, and this is the phenomena of the rising pyramid of administration, and the higher the apex the broader, of course, the base.

io . Parkinson also believes that officials make work for each other. If we go back to the seven persons in our previous illustration, can you not imagine the following situation. A n incoming document may well come before each of them in turn. Official E reads it and decides that it falls within the province of F, who places a draft reply before C , who amends it drastically before consulting D, who asks G to deal with it. But G goes on leave at this point, handing the file over to H , who drafts a minute that is signed by D and returned to C , who revises his draft accordingly and lays the new version before A .

n . W hat does A do? He would have every cause for signing the thing unread, for he has many other matters on his mind. Knowing now that he is to succeed X next year, he has to decide whether C or D should succeed to his own office. He had to agree to G ’s going on leave even if not yet strictly entitled to it. He is worried whether H should not have gone instead, for reasons of health. He has looked pale recently — partly but not solely because of his domestic troubles. Then there is the business of F ’s special increment of salary and E’s application for transfer to the Traffic Department. A has heard that D is in love with a married typist and that G and F are no longer on speaking terms — no one seems to know why. So A might be tempted to sign C ’s draft and have done with it. But A is a conscientious man. Beset as he is with problems created by his colleagues for themselves and for him — created by the mere fact of these officials’ existence — he is not the man to shirk his duty. He reads through the draft with care, deletes the fussy paragraphs added by C and H, and restores the thing to the form preferred in the first instance by the able ( i f quarrelsome) F. He corrects the English — none of these young men can write grammatically — and finally produces the same reply he would have written if officials

C ouncillors and O fficials as seen by Parkinson (cont.)

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C to H had never been born. Far more people have taken far longer to pro/ duce the same result. No one has been idle. A ll have done their best. A nd it is late in the evening before A finally quits his office and begins the return journey to his home in Parktown. The last of the office lights are being turned off in the gathering dusk that marks the end of another day’s administrative toil. Am ong the last to leave, A reflects with bowed shoulders and a wry smile that late hours, like grey hairs, are among the penalties of success. Is Parkinson wide of the mark in his theory that officials make work for each other?

12. Parkinson also claims to be the founder of the latest of the biological sciences, which is Comitology, which is the study of the life cycle of the Committee. The Committee, he claims, is not a structure, but an organic growth. It is planted, it springs up, it sends out branches which are sub/ committees, it flourishes, blossoms, decays and finally dies, and in dying scatters the seed from which other Committees spring up. That is the basic concept of Comitology, but there is much more to it than that.

13 . W hen first seen under a microscope, the ideal Committee consists o f five members — five is a very good number for a Committee — it allows for two members to be sick or absent at one time. Five members are easy to collect, and when collected can act with competence, secrecy and speed. But the difficulty is to keep the number to five. Some people feel excluded, they feel they should be on the Committee, and not being on it they criticise. In Soviet Russia there would be a simple answer to that. In Russia the critics would be liquidated. In the western world we have a different answer. W e bring them on the Committee. A s to which method is the more humane Parkinson does not know, but the fact o f bringing them on the Committee is gratifying in a way — it removes their nuisance value when excluded, and implicates them in the decisions made. But it has another effect. It enlarges the Committee — the Committee gets bigger — the numbers rise from 5 to 7 to 9 to 1 1 , finally reaching what is technically known as the co/efficient o f inefficiency. This lies between 19 and 23.

14. The most immediately obvious o f the disadvantages is the difficulty o f assembling people at the same place, date, and time. One member is going away on the 18th, whereas another does not return until the 21st. A third is never free on Tuesdays, and a fourth never available before 5 p.m. But that is only the beginning o f the trouble, for, once most o f them are collected, there is a far greater chance o f members proving to be elderly, tiresome, inaudible and deaf. Relatively few were chosen from any idea that they are or could be or have ever been useful. A majority perhaps were brought in merely to conciliate some outside group. Their tendency is therefore to report what happens to the group they represent. A ll secrecy is lost and, worst o f all, members begin to prepare their speeches. They


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address the meeting and tell their friends afterwards about what they imagine they have said. But the more these merely representative members assert themselves, the more loudly do other outside groups clamour for represent tation. Internal parties form and seek to gain strength by further recruitment.

15. W hen the Committee is a large one conversations develop at either end of the long table at which the Committee meets. Now when these different conversations develop at either end of the table, agreement becomes impossible. Nothing can be agreed because the members are not even discussing the same topic, and at that stage the original five members get together and say, “ Next time we’ll meet together the day before and settle everything then,” and, of course, from that stage it does not matter how large the main Committee becomes because all the work has been done beforehand in any case.

16. The subject of Comitology is developing every day. New discoveries are being made, new work being done. One fascinating field is known as ‘Comparative Chairm anity’ . This is the study of how different types of Chairmen get their own way by different methods. For instance, the Confusionist Chairm an is one who allows all members of the Committee to talk simultaneously on any topic for approximately 25 minutes. W hen they pause for breath he suddenly raps on the table and says, “W ell, we all seem to agree on Item 1, we w ill now proceed to Item 2” . No one knows at that time what has been agreed, but they can read it afterwards in the Minutes which were compiled by the Chairm an, of course, before the Committee actually met.

17. Another type of Chairman is one I would like to call the Rubber- stamp Chairm an, who has acted as though he had not a Committee to consult. Having acted, he then merely calls the meeting together, pretends he is consulting them and does all the talking from the Chair. The members of the Committee know that, while the Chairm an is endeavouring to make it appear that they are being consulted, the matters before the meeting have already been done, and as a line of least resistance they agree to fall in with the Chairm an’s wishes.

18. The next type of Chairm an I would like to suggest is the Side-track or Branch Line C hairm an: the Chairm an who allows anything to be discussed on any item of the Agenda. Let us take as an example an item on the Agenda to pay X R 7,500 : compensation for the expropriation of his stand which is on the route of a new expressway. It had previously been agreed that the expressway be constructed, and provision has been made in the Estimates for the compensation. Does it require much imagination to visualise the following happening’ The Chairm an asks the C ity Engineer how the expressway scheme is proceeding. Another member of the Committee


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asks whether, when we construct the road, we are going to do it departmentally or call for tenders. Discussion then ensues as to whether the C ity Engineer’s Department is the right body to do it. One member tells of what he saw on the way into the C ity in the morning when nobody in a construction gang was at work. Nearly all the Bantu were leaning on their shovels at the time he passed. The C ity Engineer then intervenes and tells of his difficulties with first-line supervision, but points to the success of the new incentive bonus schemes in the Cleansing Department. A member of the Committee feels that the people in the Cleansing Department are being worked too hard, they always seem to be running with their rubbish bins. A t this stage let us hope that a plaintive voice is raised to ask the Chairm an what item on the A genda is being discussed. The item on the Agenda would probably then be agreed to, no one ever having raised a query as to whether the compensation payable was correct or not.

19. Then we have the Chairm an who arrives at the meeting without having read his Agenda. You have all experienced this sort of thing and I don’t need to elaborate.

20. The branch of Comitology to which Parkinson has devoted special study is the branch dealing with the Finance Committee. In this regard Parkinson’s conclusion is that the time spent on any item on the agenda is in inverse proportion to the amount involved. Let us for a few moments consider some items which might be found on the A genda of a Finance Committee.

21. The first, say, is the consideration of a tender of R i 5,000,000: for the erection of a new Power Station. The C ity Electrical Engineer might be asked to give a report on the item, which would probably be to the following effect: “ Gentlemen, you w ill see from the report that the general design and lay-out of the plant has been approved by the C ouncil’s consultants. The total cost w ill be R 15,000,000: and the Contractors, Messrs. Dolittle and D ally, consider the work w ill be completed by June, 1965. You have already agreed in principle to the erection of this plant, and the funds have been provided for in the Estimates. I shall be happy to give you any further information you may require.”

22. Very few members of the Finance Committee know how a Power Station works, or the difference between a kilowatt and a volt, whether the design is upside down, or back to front, or sited where services such as water, etc., are available, or whether or not the tender is in any way reasonable, or the time proposed adequate, or whether it would not be cheaper to buy electricity from Escom. So what happens is this. The Chairman thanks the Engineer for his explanation, and calls for comments. The members of the Committee are not going to display their ignorance about the matter, and in a few minutes the item is agreed to.


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23. The next item on the A genda is the erection of a bicycle shed for the use of the staff, an estimate having been received to complete the work for the sum of R700: Plans and specifications of the shed are laid on the table. A t last here is something all members can comprehend! On throwing the matter open for discussion, C llr. Bloggs comments as follows: “ Surely, Mr. Chairm an, this sum is excessive. I note the roof is of aluminium — would not asbestos be cheaper;” . C llr. Chipps says he agrees with C llr. Bloggs about the cost, but the roof, in his opinion, should be of galvanised iron. C llr. Gripe doubts whether the shed is necessary at all. He feels too much is being done for the staff already, that they are never satisfied, and that if a bicycle shed is erected, the next thing we w ill have to do is erect garages. W here is all this going to end, he asks. C llr . Chipps does not agree with C llr. Gripe. He feels the shed is needed, but that it is being placed in the wrong place, and that the design is faulty, and that provision is being made for too many bicycles. After this the debate is fairly launched, and discussion goes on for over an hour, and finally it is agreed that the shed can be erected at a cost o fR 50o : at which price the shed w ill lose a considerable portion of its usefulness.

24. The third item on the A genda is the sanctioning of a payment to a workman ofR a.oo for tools stolen from a depot during the night. Imagine the possibilities of a discussion on this item. How do we know the tools were stolen — surely R2.00 is the cost of new tools — how long had he used the tools — where was the nightwatch at the time. A t this stage someone is bound to raise the question of this being a matter of principle, and creating a precedent, and all this for R2.00. This item, in any language, should be good for discussion for at least half an hour.

25. Is this not all very true; W e know that Parkinson is poking fun, but next time you are at a meeting just watch what happens, and see i f you do not agree with Parkinson that it is the unimportant, the trivial items, on which all the time is wasted, and weighty matters, which are worthy of more consideration, are glossed over. Just see if Parkinson is not right that time spent on any item on the Finance A genda is in inverse proportion to the amount involved.

26. I have often wondered if officials, in arranging items on the Agenda, do not take this into consideration. Do you not think it possible that items are so arranged on an A genda that a trivial item, on which endless discus^ sion can take place, is made to precede a very difficult item, which officials doubt if they can get through. Is it not possible that officials sometimes raise red herrings so as to divert attention from the items which are difficult? Members of the Committee, having wasted a tremendous amount of time on trivial matters, are likely to agree to the remaining items on the Agenda so that they can finish on time and get home to dinner.


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27. Parkinson’s third law is o f far more interest to this Conference. It is that Expenditure always rues to meet Income. W hen an individual has a rise in his salary and goes home and announces it, he, or perhaps his wife, is sure to decide how the additional income is to be spent. So much on an insurance policy, so much on this, and so much on that — the extra salary is silently absorbed leaving the family barely in credit, and often, in fact, with a deficit which is actually increased. One o f the senior officials in our C ouncil told me the other day o f what happened to him. His wife’s mother had decided to give each o f her daughters R 10 0 : The official’ s wife was delighted at receiving this amount, and decided that at long last she could have the lounge chairs and settee re-covered, which her miserable husband had failed to provide, and she immediately chose the materials and had the work done, spending R n o : in the process. But what was the result when the new settee and chairs were installed; You can just hear the wife’s exclamations, “ Jack, look at the carpet, and the curtains, they look terrible!” . You can imagine the rest. The poor fellow had to scratch to find the money for the curtains and the carpet, and perhaps even had to paint the walls. Expenditure rises to meet income, and generally exceeds it!

28. It is widely recognised that what is true o f individuals is also true o f Governments. Whatever the revenue may be there will always be the pressing need to spend it. But between Governments and individuals there is this vital difference, that the Government rarely pauses even to consider what its income is. This is the difference between an individual and the Government, an individual tries to limit his expenditure to his income, but the Government, or the Municipality, decides what it wants to spend and then levies taxes to provide the funds that it has decided to spend. Let me give you another example o f whatever the revenue there will be a pressing need to spend it.

29. In Johannesburg it was decided some years ago to erect a C ivic Theatre. It was then estimated that the cost o f a theatre to seat 750 people would be R 292 ,ooo: It was later decided to change the site o f the theatre to the new C ivic Centre, and the estimated cost o f a theatre to hold the same number o f people was now R450,ooo: as it was felt that on the new site it should be more lavish. W hen tenders were received, however, the cost had increased to R525,ooo: A t this stage it was decided to increase the size o f the theatre to accommodate 1,020 people, and on this basis the tender received was R6o5,ooo: Is it asking you to stretch your imagination too far when I suggest that between the time o f the approval o f the second venture and the final stages, the plan was altered, additional amenities provided, and perhaps there might even have been trouble with acoustics requiring alterations, so that the final cost o f the theatre will probably be R777T40-


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30. N ow this is where Parkinson’s law comes into the story. Some well- wisher o f the theatre agreed to make available to the Council a certain piece o f ground which was to be sold, and the proceeds used towards the capital cost o f the theatre. Is it also stretching your imagination too far when I suggest that there was a considerable lapse from the time the ground was given until transfer was taken, and the Council was in a position to dispose o f the ground, having by this time obtained the Administrator’s approval to the sale. W hen the ground was originally granted it was anticipated that the sale would release to the Council a capital grant o fR ioo .ooo . O wing to the delays in obtaining transfer, and the change in market conditions, when the property was finally sold the amount available towards the capital o f the theatre was not R ioo ,ooo: but R220,ooo. W hat would you expect the reaction to this additional R i20 ,ooo to be? It could have been: W ell, thank goodness, the theatre has cost us far more than we contemplated, but with this windfall it will bring it within our original budget, remembering that at the time the theatre was planned the expected rentals were based on the expected capital cost, and fixed on that basis. Not on your life! The reaction was — now we can have the curtain we were wanting. Can we now build the open-air auditorium we had planned for the future?

3 1. Another example o f what happened recently was in connection with an area o f ground which had been bought for Non-European housing. This area was remote from the City, and the Council decided that it was no longer suitable, and would be transferred from the Native Revenue Account to the Estates Branch. The value placed on the ground was R i 50,000. Here was a windfall, and items which had previously been cut out o f the Estimates suddenly raised their heads, and not only was the R i 50,000 spent, but some o f the items on which it was spent were:

1. Building o f a swimming bath2. Development o f recreational areas3. Floodlighting and electrification o f a stadium

items which in future years would necessitate maintenance and recurring expenditure, so not only was the money spent, but future budgets were committed to recurring expenditure.

32. Parkinson suggests a revolutionary change in Government and Municipal budgetary estimates. He suggests that instead o f Departments preparing budgets o f their Revenue and Expenditure, that the Cabinet or Council, or whatever body is in control, should fix the expenditure that is allowed, and allocate a fixed sum to each Department. He feels that Executive Officers, i f given limited but fair amounts to run their Departments, would know where economies could be effected. Once they understood that development in one direction would be conditional upon econo


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mising on another, they could be safely left to run their Departments. He feels that this would make officials accept more responsibility, would leave them free to display initiative, and make them recognise that cost and value are but different aspects o f the same idea.

33. D o you not feel that our present system requires revision? I know that in our Council, at Estimate time, there are so many figures to be considered that it is almost impossible for Councillors to deal adequately with the Estimates. A t first there are the Estimates based on the requests by Departmental Heads. W hen the C ity Treasurer collates these Estimates, he suggests the cuts that are necessary to bring the overall position into line. Then there is a rushing hither and thither, and often jockeying by Coun/ cillors, to see that particular fancies are not eliminated from the Estimates, but once the Estimates are approved everyone heaves a sigh o f relief and relaxes.

34. Thereafter, from time to time, items appear on the Agenda for passing. The fact that the item has appeared on the Estimates creates a feeling almost o f reverence towards the item — “ It is on the Estimates, what are we worrying about?” and it is very rarely that expenditure o f money already approved in the Estimates is queried. W hat o f an item which was not provided in the Estimates, which will result in an excess vote? Such an item gets all the scrutiny and examination that should have been devoted to each item on the Estimates. W ould it not be true to say that when Depart/ mental Heads prepare their estimates they ask for more than they hope to get? They would be fools i f they didn’t, because they know they will be asked to cut, so they have something in reserve so that they can get what they wanted in the first instance. Is it not true, too, that in drawing estimates provision is made for a full complement o f the authorised staff on establish/ ment, even though for years some positions have not been filled? Is it not true, too, that once having got a post created on establishment, officials are reluctant to abolish a post because they know o f the difficulty they had initially in having the post created?

35. I think it is as well for us sometimes to sit back and see ourselves as others see us. Next time you are attending a meeting o f a Committee, just sit back and see i f it is not true that the unimportant items waste more time than the important ones. I f you are the Chairm an o f a meeting, pause to think into what category o f Chairmanity you fall. I f you are an official pause to think whether officials want to multiply subordinates or create rivals, and do officials make work for each other. Is it not time that officials were given more authority in the expenditure o f their Departments? W ould it be a bad idea i f officials were given more discretion in the spending o f money? D o you not think that officials could cut down their budgets i f there was a bonus attached to the saving o f expenditure?


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36. Mr. President, I hope I have not given this meeting the wrong impression — that these provocative thoughts o f Mr. Parkinson are my own. I would like to make it clear that the characters depicted are purely imaginary and have no reference to persons either living or dead, least o f all to any persons I have ever met! Should the cap fit however . . .

T h e P r e s i d e n t : Ladies and gentlemen, I think we have listened to an excellent paper, made even more excellent by the manner o f its presentation.

D i s c u s s i o n

T h e P r e s i d e n t : Ladies and gentlemen, I have asked Mr. R ex W alker, the C ity Treasurer o f Cape Tow n, to open this discussion. I can think o f no officer better qualified to take up the cudgels on behalf o f officers than the genial giant from Cape Tow n.

M r . R . S . W a l k e r (C it y Treasurer, C a p e T o w n ) : M r. President, I th an k you for your rem arks an d w elcom e the opportunity o f expressin g m y appreciation to C o u n c illo r L e w is for the presentation o f his paper on P a rk in so n ’ s L a w . A s he said , o rig in a lly it h ad been his intention to use these la w s to afford som e form o f co m ic relief, bu t subsequently he appreciated their im portan ce in the adm inistration

o f a large city.

It w o u ld seem fro m his paper an d general com m entaries that P a rk in so n ’ s L a w is som ething w h ic h should be elim inated fro m the econom y, an d the com m u n ity as a w h o le should gear itse lf to a ruthless form o f efficiency w h ic h in the end w i l l y ie ld the best results. T h is quest for efficiency, how ever, in m y o p in io n M r. President, is n ebulou s, as the w elfare o f a State depends m ore on the happiness an d con / tentedness o f its people th an on their servitude to m achine-dike efficiency. I consider that i f it w ere not for P ark in so n ’ s L a w the w h ole econ om y o f G re a t B rita in w o u ld have been ch an ged for the w orse, an d sim ilarly in this country the econom y o f efficiency does not necessarily m ean the criterion for enjoys m ent o f its econom ic welfare.

A n article in the L o n d o n S u n da y T im es o f the 1st M arch this year w as presented by an A m e r ic a n efficiency expert an d m anagem ent consultant. T h e headline read : “ Is B rita in a half-tim e country getting h alf-p ay fo r h a lf-w o rk an d a half-hearted m an agem en t!” In this article he headlines the fact that for each person needed to produce a ton o f steel in A m e r ic a three are needed in B rita in ; it takes three to s ix times as lo n g to b u ild a house in B rita in , an d he proves statistically that A m e ric a n s can perform on average in 40 per cent o f the tim e that it takes in G re a t B rita in . H is con clusion s, o f course, are w o rsh ip fu l o f A m e ric a n efficiency an d derogatory o f the id le indolent an d half-hearted people in G reat B rita in .

In m y o p in ion , h ow ever, his con clusion s are entirely w ro n g . In A m e r ic a unem ploym ent is rife ; a great percentage o f the people live b e lo w the bread lin e ; racia l riots an d unrest are evident th roughout the cou n try ; the poor an d aged are not properly cared for, an d the un em ployed are left to starve.

In G reat B rita in , w here P ark in so n ’ s L a w has dom in ated the econom y, the story is entirely different. F u ll em ploym ent is ob tain ed because everybody takes tw o an d a h a l f tim es as lo n g to do the jo b an d, a lthough there is a lo w er general standard o f liv in g , at least the problem s o f unem ploym ent, starvation an d existence b e lo w the bread line are elim inated . A s far as the taxpayer is concerned, he is not required to contribute a large portion o f his taxes to unem ploym ent re lie f or support the dole system , an d idlers are not created b y unem ploym ent w ith the problem s o f c iv il unrest engendered by such u n em ploym ent. It is true that the em ployed person does not earn as m u ch on average as h is opposite num ber in So u th A fr ic a , an d certainly on ly about onc^third as m u ch as in A m e ric a . F ro m the po in t o f v ie w o f relative econom ics, how ever, th is is a satisfactory solution o f the pro b lem because it does not pay socia lly to em ploy a m an at three tim es the n o rm al w a g e because he is efficient, as this creates the pro b lem o f pu ttin g tw o m en out o f em ploym ent. T h e eventual cost is the sam e but leaves the pro b lem o f the tw o

m en out o f em ploym ent requ irin g a solution by State subsidy.

C ouncillors and Officials as seen by Parkinson—Disc. (com.)

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C ouncillors and Officials as seen by Parkinson—Disc, (cont.)

Houses in Great Britain are let at a rental less than those in America, notwithstanding the fact that they take three times as long to build. Consequently, Parkinson’s Law solves a great number of prob' lems. By the elimination of ruthless efficiency, Great Britain has absorbed its surplus of labour. It is in the happy state of full employment. Social welfare is promoted, health problems eliminated and a happy and contented community created.

Parkinson’s Law operates in this country as well. It may be said that Cape Town, with 4 j councillors (three more than Johannesburg), 16 standing committees, five casual committees, and several ai hoc committees, is an example of Parkinson’s Law working in municipal administration. That may be so, but the end results are far more satisfactory in that the Cape Town Council is more representative of every section of the people than any other local authority in the country and, although this form of democracy may be expensive from the administrative point of view, its ability to voice the wishes of its citizens democratically is more important to the happiness of its people than a confined and ruthless efficiency. It is true that the length of its agenda and, in many cases, the minutiae of its discussions can call for derisory condemnation. In point of fact, however, the very discussion of these trivialities is the significance of its democratic outlook and, although time consuming discussion revolves about matters which are of small moment, the contentedness of the people is related not to the solution of major matters but to the attention given to irksome details which differentiate between happiness and irritability in every branch of municipal administration at council, committee and administrative level. If ruthless efficiency was to find its way into the economy of a country the aftermath would be disastrous. It would result in revolutions, riots, bloodshed, unemployment and real trouble. It must always be remembered that efficiency must be introduced gradually and not by revolutionary upheaval. The Industrial R evo lt tion, which brought disaster in its train, was an example of the introduction of efficiency at too accelerated a pace. Similarly, to a lesser extent, the mechanisation and automation of the present age, although necessary in the long run, must be so regulated that the humanities are not eliminated and efficiency brought at too great a cost.

H isto ry has sh o w n that autocracy is a b ad form o f governm ent. N o one doubts the efficiency o f an autocratic form o f governm ent, an d in certain b a c k w a rd A f r ic a n states this m ay be com pletely necessary. T h e happiness o f the people an d the prevention o f c iv ic unrest, how ever, is b o u n d u p w ith a dem ocratic form o f governm ent.

T h is is m y ob jection to the m anagem ent com m ittee experim en t in the T ra n sva a l. U n d o u b te d ly the m anagem ent com m ittee is a m ost efficient form o f m u n ic ip a l adm inistration . T h e in troduction o f a m anagem ent com m ittee o f five into the C a p e T o w n M u n ic ip a lity , how ever, w o u ld m ean that these five w o u ld represent the executive p o w e r an d , a lthough the other 40 coun cillors in theory w o u ld determ ine the p o licy , the practica l effect w o u ld be that the sm all m anagem ent com m ittee w o u ld attend to the govern m ent o f the people an d the rem ain in g 40 coun cillors w o u ld be unable to represent properly the ratepayers o f the city. T h is negation o f dem ocracy m eans v irtu ally that a m ajority o f three on a m anagem ent com m ittee c o u ld control lo cal govern m ent adm inistration , an d the dem ocratic system o f fu ll co u n c il control w o u ld be lost.

E x p erien ce o f the sam e type o f m anagem ent com m ittee in A m e r ic a has been that p o w er has been corrupted . T h e com m ittees h ave becom e so p o w erfu l, so autocratic an d so bureaucratic that the in evitable result has been corruption , bribery an d m ism anagem ent o f the cities. In this country, the a d m in istration is at present free from the taint o f corruption , an d that has largely been so because o f its dem ocratic system o f governm ent. M y fear, therefore, is that the experien ce evidenced in the A m e ric a n m anagem ent system, as w e ll as the autocratic control in A f r ic a n states, can lead to a b reak d o w n in honesty o f adm inistration . In order to ensure that this w ill not h ap pen in the R e p u b lic , I m ain tain that it is necessary for each an d every cou n cillo r representative o f the ratepayers to have a fu ll vo ice in the affairs o f the city.

T h e hole-in-the-corner business o f the m anagem ent com m ittee w i l l not p ay in the lo n g run . T h e dem ocratic form o f lo ca l govern m ent vitiates against efficiency but at least it achieves its purpose o f satisfying the com m u n ity an d enables them to go vern rather th an be governed.

P a rk in so n ’ s L a w is an inevitab le con com itant o f dem ocratic control an d , therefore, I end m y com m ents w ith the q u ix o tic statem ent: “ T h a n k G o d for P a rk in so n ’ s L a w ; th an k G o d that w e have got this system o f dem ocratic inefficiency, because by it w e h ave brought general happiness to the com m u n ity an d have elim inated the m isery o f autocratic efficiency in the govern m ent o f the people .”

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T h e P r e s i d e n t : Thank you Mr. W alker. Ladies and gentlemen, you will recall that when Mr. Lewis got up to speak this morning he called attention to a particular paragraph at the top o f his paper, reading as follows:

“ The Institute is not as a body responsible for, or necessarily in agreesment with, the views and opinions expressed by authors o f papers.”

I would add to this affirmation the words “ or speakers” .

Die volgende spreker is Raadslid C . J . de K ock, van Klerksdorp. Raads/ lid de K ock is ’n lid van hierdie Instituut en ’n spreker wie se insigte op andere geleenthede deur ons met respek aangehoor is. Dit sal my nie verbaas nie as Parkinson se Wet net die teenoorgestelde werk in Klerksdorp.

Raadslid de K ock asseblief.

C o u n c i l l o r C . J . D e K o c k (K le rk sd o rp ) : T h a n k you , M r. President. Y o u om itted, how ever, to say that I w a s b o m in the T ran sva a l.

M r. President, I w o u ld lik e to jo in M r. W a lk e r in th an k in g M r. L e w is for this very th o u g h t 'p n v v o k in g paper w h ic h he has term ed co m ic relief. H e has certainly succeeded in con veyin g to our m inds that there is m an y a true w o rd spo ken in jest. Fortunately too his paper perm its o f such w id e d iscussion that one cou ld speak on alm ost an yth in g. M r. President, w h en I first read this paper, I w as very w orried about P a rk in so n ’ s L a w , but after listening to M r. W a lk e r , apart fro m his u n w arran ted attack on the T ra n sva a l system, I am not so terribly w o rried about it. H o w e v e r, as a co u n c illo r an d a responsible person, I m ust agree w ith M r. L e w is , in the second last paragraph o f his paper, that w e m ust try to see ourselves as others see us.

M r. President, regard ing the la w set out in paragraph 3, unfortunately I have been in both cam ps. I w as an offic ial for m an y years an d for quite a few years past h ave been a co u n cillo r an d I feel that there is a great deal o f truth in this la w , a lth ough perhaps not qu ite to the extent that P a rk in so n claim s. It needs to be very carefu lly exam in ed by each cou n cillo r i f he w ants the m iserable efficiency w h ich M r. W a lk e r has so vio len tly opposed. It is true that i f one does not keep a w a tch fu l eye on th ings it is soon fo u n d that adm inistrators, especially in the second section, are in c lin ed to increase. C ircu m stan ces determ ine the position in each particu lar lo cal authority or business, an d it is up to executives, O . an d M . units an d costing units to take care o f the matter.

T h e second po in t is the illustration o f the trem endously disproportionate increase in adm inistrative w o rk in the B ritish n avy . W e ll, P ark in so n has p ro b ab ly h ad an opportu n ity o f g o in g very deeply into that aspect, M r. President, an d I w o u ld not be in clin ed to criticise his theory ju st on the figures.

In p aragrap h 9 o f M r. L e w is ’s paper it is said that P ark in so n believes that the basic cause o f this m u ltip lication — the m u ltip lication o f adm inistrators — is that the execu tive ’ s interest is a lw ays to m u ltip ly subordinates rather th an rivals. I pu t the question to som ebody at tea tim e an d he sa id : “ W h a t do yo u expect fro m h u m an nature” . I m ust say, th ou gh , M r. President, that since the form ation o f this Institute an d other professional Institutes, such as the Institute o f T o w n C le rk s an d so on , this sort o f th in g is on the w a y out. It does not o ccu r so easily. T h e fact that o ffic ials som etim es m ake w o rk for each other is also true. A go od system o f ch an n elisin g data an d in form ation an d item s requ irin g attend tion an d reply co u ld obviate that. T h e exa m p le o f the la d y w ith a p o s tc a r d is one w h ic h , I th in k , is very often fo u n d in offices. It is due to a la ck o f m ethodical ap proach to yo u r jo b . T h a t an executive or a senior person can very soon find out. A n d this business o f M r. A , after h a v in g passed the item for reply fro m one to the other a n d eventually d o in g it h im self, w e ll I am not sorry for h im at a ll, because a b ig red p en cil in the first p lace w o u ld have solved his prob lem . M a rk out the do cum en t to M r. S o 'a n d 's o to attend an d n o b o d y else, an d w h e n it com es b a c k an d it is not to the c h ie f ’s lik in g , again ap p ly the th ick red pen cil an d it w ill not hap pen very often.

C ouncillors and Officials as seen by Parkinson—Disc, ( c on t . )

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T h e n , M r. President, the m ost am u sin g part, but a very true one, is P a rk in so n ’ s la w on C o m ito lo g y . A l l our cou n cils , cou n cillors an d officials k n o w the type o f th in g that happens in this case. M r. L e w is , unfortunately, d id not m en tion a fe w o f the real m enaces in com m ittees an d , w ith yo u r perm ission, I w o u ld lik e to a d d a fe w to w h at he has m entioned.

T h ere is , first o f a ll, the pseudo expert on a com m ittee or co u n cil. A m an w h o has been a most unsuccessful b u ild in g contractor, bu t th in ks he is an expert on b u ild in g s an d proffers ad vice on the erection, say, o f a pow er station. U n fo rtu n ate ly his estimates are never correct an d that is w h y he is an unsuccessful b u ild er. T h e n yo u get the other m an w h o likes pu b lic ity . H e often reserves the right to speak in fu ll C o u n c il o n this a n d that item because he w ants h is voters to see that he is really a live w ire an d speaks on every item on the agen da, bu t not in com m ittee, w h ere the press is present. T h e n there is the m an I w o u ld lik e to ca ll the th inker. H e never has enough tim e to study his agen da and a lw ays asks for the item to be postponed so that he can get an opportunity o f th in k in g on this particu lar matter. H e w o u ld p ro b ab ly speak lik e th is : “ M r. C h a irm a n , I on ly received this item three days ago an d I have not h ad an opportunity o f g o in g into it yet. A lth o u g h I k n o w it is w ro n g , I do not quite k n o w w h at is w ro n g w ith it or w h at to suggest in its p lace .” In other w o rd s, he has no concrete suggest tion but w ants tim e to th in k the matter over, an d accum ulates w o rk for the officials an d councillors for the n ext m eeting.

A s to the increase o f m em bers o f the com m ittee, the T ra n sv a a l has fo u n d the solution by prescrib ing by la w the n u m b er o f m em bers that sh ou ld serve on a m an agem ent com m ittee.

In paragraph 2 1 , C o u n c illo r L e w is m entions consultants as h av in g ap proved o f certain projects. I am sorry that C o u n c illo r L e w is has not fo u n d a little tim e to say m ore ab o u t these consultants. M r. President, I am quite allergic to consultants an d efficiency experts, because I have been so m any tim es disappointed w ith the result o f their w o rk . It is noticeable that in the m u n ic ip a l field it is becom in g quite a h ab it to ap po in t consultants for every little th in g , even the sm allest project. I do not w a n t to belittle the real consultant or decry the necessity for h is services w h e n one undertakes a very large schem e o f a n e w k in d that is not w e ll k n o w n ; bu t this business o f ap p o in tin g consultants at terrific fees for every little th in g is w astin g the ratepayers’ m oney. H o w m an y reports o f these consultants have been dropped in the w aste paper basket because, in practice, they cann ot be im plem ented! L o c a l authorities engage techn ical m en w h o are supposed to be trained an d qualified in their jo b s. In m an y cases, these m en rem ain in the C o u n c il ’ s service for a w h ile , then g o outside a n d set u p in offices as consultants, an d they subsequently becom e the consultants for the new E n g in eer or Treasurer that m ay be appointed . M r. President, I th in k that w e should p ay a little m ore attention to this practice , because, to m y m in d , it in vo lves a trem endous w aste o f m oney an d is b ecom in g a habit. So m e o f our cou n cils have on several occasions over a period o f years im ported experts fro m overseas an d then scrapped their reports, leavin g the ratepayers to bear the no m ean cost.

M r. President, there is som e truth in the saying that expenditure a lw ays rises to meet the incom e, b u t the experience o f m ost lo ca l authorities is that they have not got sufficient m oney to create an y fur/ ther expenditure, so I do not th in k w e need be very w orried ab ou t this la w .

In paragraph 32 of Councillor Lewis’s paper, the suggestion is made that, instead of departments preparing budgets of their revenue and expenditure, the council, or whatever body is in control, should fix the expenditure that is allowed and allocate a fixed sum to each department. Mr. President, that would be a happy relief to those poor officials that have got to exercise financial control; but it blows up a vital principle of this Institute, which is to institute and maintain efficient financial control. I feel, therefore, that we need not worry about this suggestion any more.

In paragrap h 34 , C o u n c illo r L e w is asked w h ether officials do not som etim es ask for m ore th an they really w a n t in the estimates in the hope that they w i l l eventually get exactly w h a t they w an t. T h a t is h u m an nature a n d it has to be w atch ed for, but a g o o d centralised costing system, after ru n n in g for a cou p le o f years, c o u ld stop that practice. Y o u w o u ld have predeterm ined costing figures to w o rk on, a n d i f any head o f departm ent w an ted som ething extra , he w o u ld have to e x p la in w h y .

M r. President, I have enjoyed reading this paper an d listen ing to the w a y in w h ic h C o u n c illo r L e w is has presented it, an d I am very pleased to have h ad the opportunity o f speak in g on it. It rem inds m e th roughout o f the stigm a that has been attached for m an y years to m u n ic ip a l officials an d councillors,

C ouncillors and Officials as seen by Parkinson—D isc , (cont.)

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the latter being considered to be the low er form o f an im al life. N o b o d y ever appreciates that m u n ic ip al servants w o rk . I h ad tw enty /five years’ experien ce in m u n ic ip a l service an d believe m e I w o rk ed h ard.

T h e P r e s i d e n t : Baie dankie, Raadslid de K ock.

Fortunately, ladies and gentlemen, there will be time to have several speakers from the floor. Councillor Steer, o f Salisbury, is the next speaker, and then the debate is over to the floor itself.

Councillor Steer.

C o u n c i l l o r W . S t e e r (Salisbury): Mr. President, this is probably the only opportunity that I shall have of addressing the Conference, so before commencing the job that I am in this rostrum to do, I would express, on behalf of all those elected to Plonorary Membership of the Institute for 1963/64, our sincere appreciation of the signal honour which the Institute has conferred on us. I am sure, gentle/ men, that our President has really studied Parkinson’s Law. I am impressed by the similarity of this Conference and the finance committee meetings which we hold in the city of Salisbury. It is governed by the rule of common sense and practicability.

N o w , M r. President, turn ing to C o u n c illo r L e w is ’ s paper, it is a lo n g tim e since I en joyed such a brilliant an d w itty speech. I th in k C o u n c illo r L e w is is to be heartily con gratu lated on liftin g the C o n / ference out o f the norm al run o f serious debate. L ik e C o u n c illo r L e w is , I too am am used to see at the very com m encem ent o f the printed paper a statement to the effect that yo u r Institute as a b o d y is neither responsible for, nor necessarily in agreem ent w ith , the v iew s an d op in ion s expressed b y C o u n c illo r L e w is . I th in k this is a great pity , because I sh ou ld have th ought that an y responsible A c c o u n ta n t or Treasurer w o u ld have risen im m ediately to support the them e an d theories that h ave been evin ced . P a rk in so n propoun ded a la w that has stood the test o f tim e, an d its im plicatio n s surely ap p ly to insti/ tutes an d cou n cils as w e ll as an yb o dy else.

T o w h at extent our M u n ic ip a l C o u n c il succum b ed to P a rk in so n ’ s L a w , I do not k n o w , but n o w and then even in C o u n c il — I am on it m y se lf— I seem to sense the signs. O n e o f the greatest an d most jealou sly gu arded privileges o f dem ocracy is the righ t to choose. W e choose w hether w e put u p for cou n cil in the first p lace, an d w h e n w e are elected w e ca n choose for ourselves w hether w e are prepared to w o rk or do noth in g. W e also choose w hether w e are prepared to be constructive or to be a w k w a rd . M ost o f us choose to be a w k w a rd because w e get our nam es in the papers an d it proves to the voters in our o w n particu lar w a rd that at least w e are a live. T h e first im portan t th in g in a co u n cillo r is that he m ust be alive, but m an y cou n cillors e xh ib it the tendency to d ith er; one m inute they are a live and alert, an d the next they are despondent to the extent that only one ap p ro ach in g death can com prehend . T h is , o f course, calls for investigation. T h is d isp lay o f in decision not o n ly h an d icaps an d frustrates the w h o le con du ct o f c o u n c il an d the m anner in w h ic h the officers are en abled to carry out their m am m oth tasks, but the basic structure o f dem ocratic m u n ic ip a l la w is threatened. So m eth in g has to be d o n e ; at an y rate in tim e to cover u p the situation w e ll before the n ext m u n ic ip a l elections. I

I recall seeing a film the other day in w h ic h it w a s estim ated that the car po pu lation o f m ost o f our progressive cities w o u ld dou ble w ith in the next ten years. W h a t sort o f people are w e ! W e live in a lan d o f w id e open spaces an d yet on every h an d w e w atch ab ove us the tow ering o f im m ense skyscrapers in w h ic h hundreds o f people w o rk . E v ery one o f them seems to arrive in a veh icle that som eh ow has to find a spot for p a rk in g as near at h an d as possib le. W h a t on earth are our cities g o in g to lo o k like in ten years’ tim e! T h is m u ltip licity an d sheer geom etric progression is yet one m ore evidence o f our friend P ark in so n ’ s la w . E v e ry m ovem ent gets m ore an d m ore difficu lt. It needs m ore lab ou r to sort it out. It requires shoals o f p a rk in g meters. T h e n , either because w e are dishonest or because a ll o f this provides va lu ab le em ploym ent opportunities, w e get shoals o f p a rk in g supervisors w h o superintend the p a rk in g meters. V e r y soon w e have to h ave shoals o f p a rk in g superintendents, w h ose jo b it is to super/ intend the p a rk in g supervisors, w h o supervise the p a rk in g meters, an d before very lo n g w e h ave to em ploy shoals o f super p a rk in g superintendents, w h ose task it is to supervise the shoals o f p a rk in g super/ intendents, w h o superintend the shoals o f p a rk in g supervisors, w h o supervise the shoals an d shoals o f p a rk in g meters. Sh ades o f P a rk in so n !


[ 1 5 7 ]

C ouncillors and Officials as seen by Parkinson—Disc . (cont.)

W e w a tch w ith aw e som etim es this tu rn in g o f the vast w astes o f A f r ic a into h ives o f industry, b u ild in g u p w ard s an d ever u p w ard s tow ards the gloriou s heaven. U n d ern eath an d a ll aroun d are pleasant structures, sn u gg lin g m ultitudes o f fo ur-w heeled m onsters, unless o f course w e w a lk or ride

a bicycle.

M r. President, I th an k C o u n c illo r L e w is for h is entertaining paper.

T h e P r e s i d e n t : Thank you, Councillor Steer.R a a d s l i d J . S im o n ( G o o d w o o d ) : M eneer die President en lede, d ie n aam P a rk in so n herinner m y

aan d ie grap w a t ek gehoor het om trent tw ee raadslede en ’ n m u n isipale tesourier w a t eendag gaan v is v an g het in ’ n bootjie o p die see. D ie see het begin ontstuim ig w o rd , die bootjie het b egin kan tel, en soos u gelees het in die referaat v a n raadslid L e w is , moes die arm e raadslede eerste afsprin g. H u lle het n atu u rlik nie g e k y k w a a r die la n d w a s nie en een het in die een rigtin g gesprin g en die ander in die ander rig tin g , met die gevo lg dat altw ee verd rin k het. D ie tesourier w a s ’ n bietjie slim m er. H y het eers die w êreld deeglik b ek yk , g e k y k w a ar die la n d lê, en toe het meneer gesprin g. H y het gesw em en geswern en n ogal goed gevaar w a n t toe h y sow at vyftien tree v a n die la n d a f w as w as h y nog nie u itgeput nie. T e rw y l h y sw em het h y terloops sy horlosie o p sy arm raak gesien en toe h y weer k y k opgem erk dat dit

v y f u ur is. H y het toe d a d e lik opgeh ou met sw em en verd rin k.

M eneer die President, so voel ek om trent P a rk in so n . E k is m iskien n o g baie jo n k , soos dit v ir u ly k , ek is n og m aar v y f jaa r ’ n raadslid o p m unisipale geb ied— vir die afgelope vier jaa r voorsitter van die finansies kom itee — m aar ek k a n m y nie vereenselw ig met die referaat gelew er deur R a a d s lid L e w is o f die vorige sprekers nie. M eneer die voorsitter, in die referaat is m eld in g gem aak v a n verskillende tipes v a n voorsitters, hoe sw a k o f goed h u lle o ok al is, m aar ek sou sê ’ n voorsitter v a n enige kom itee is net so goed soos sy betrokke h o o fh o m m aak . A s sy h o o f in horn belangstel as n voorsitter, sal daard ie h o o f m oeite doen o m v a n daard ie betrokke raadslid ’ n goeie voorsitter te m aak . D it sal nie help o m ’n raadslid o f ’n voorsitter te kritiseer op die m anier w a aro p h y ’n vergaderin g lei het nie. E k d in k d it is d ie betrokke am ptenaar se p lig om v o o ra f reelings te tre f sodat daard ie vergad erin g w e l in ’n goeie gees p laasvin d . H ie r is feite genoem om trent verskillen de rade, w a t hulle doen, hoe v in n ig hulle vyftien m iljoen rand k a n spandeer, en hoe la n k h u lle oor n h o k k ie v a n sew ehonderd rand gestry het. D it is m iskien w a a r, m aar n ou w il ek v ir u sê — u moet b esef dat die raadslid daar geplaas is deur die belastingbetalers en h u lle verw ag v a n die raadslid net die beste. D ie verw yd erin g v a n vu ilgo ed , riool/ dienste, d ie m aak v a n paaie, en sypaadjies, beheer oor vloedw ater, w a t ook al, dit verw ag die belasting/ betaler as vanselfspreken d. H y verw ag n o g meer v a n die raadslid . H y verw ag deeglikh eid . H y verw ag ’ n intensiew e soektog, o f o pspo rin g v a n foute. D a a ro m het die raad die reg o m la n k te argum enteer

en te stry voordat h u lle tot ’ n beslissing k o m .

O o rw ee g die geval v a n hoofde o f am ptenare w a t b y die opstel v a n ’ n begroting vergeet o m ’ n sekere item o p die begroting te p laas. G ed u ren d e die jaa r gebeur dit dat hierdie item n o odged w on ge gedoen moet w o rd . D a n v in d u dat die betrokke am ptenaar opstaan en aan die raad sê : „O o reen k o m stig seksie so/en-so v a n die ordonnansie k a n ons die A d m in istra teu r se go ed k eu rin g v ra o m h ierdie onkoste aan te g a a n .” M aar, M eneer die President, laat die raadslid nou vra v ir ’ n bedrag ge ld v ir n o odsaak like w e rk , o f w e rk w a arvo o r nie begroot is n ie, d a n sal j y go u hoor dat d it nie gedoen k a n w o rd volgen s d ie ordon nansie m e. D it nie toegelaat m ag w o rd nie en dat die ouditeur dit sal a fk e u r . D ie am ptenaar

het altyd ’n u itw eg en die arm e raadslid nie.

M eneer die President, ek vo el — en ek w i l dit baie skerp beklem toon — dat hoe eerder ons van P a rk in so n ’ s L a w ontslae k a n raak in die R e p u b lie k des te beter sal d it v ir ons a lm al w ees. E k g lo n og dat as ’n m an sy w e rk doen h y daarvoor vergoed m oet w o rd . A s h y nie sy w e rk doen nie, d a n moet hy

v ir horn ’ n ander w e rk soek.

B a ie d an kie , M eneer die President.

M r . E . S . R e i d ( T o w n Treasurer, V e re e n ig in g ) : I w o u ld ju st lik e to ad d a few rem arks o n P a rk in / son’ s L a w to the points w h ic h C o u n c illo r L e w is has m entioned. F irst o f a l l , I w o u ld lik e to say that i f yo u h ad to g ive officials a bon u s for cuttin g d o w n o n their expenditure, it w o u ld be disastrous. It w o u ld resem ble gran tin g T ra ffic Inspectors a com m ission on the collection o f traffic fines.

So m e bye/law s are quite a m u sin g bu t they are quite serious too, such as the question o f m ak in g appointm ents. Y o u k n o w the o ld story o f the m an w h o m ust get the jo b because he has been a resident

[ 1 5 8 ]

o f the to w n for so m an y years an d is a ratepayer. V e r y often appointm ents are m ade on those lines, but, fortunately for som e people, the appointm ent o f to w n clerks n o w adays cann ot be m ade that w a y . In the T ra n sva a l, o f course, you h ave the business o f contracts b ein g aw arded to local industries or lo cal people, no matter w h a t the price is. It is very n ice to have a lo ca l product.

M r. C h a irm a n , I am afraid that Treasurers becom e too obsessed w ith m oney matters, b a lan c in g budgets, trying to control the in flo w an d the o u tflo w o f m oney, w h ile U n iv e rsity Professors, w aste q u ite a lot o f tim e on stu dyin g the theory o f p u b lic finance an d they do not see any w a y th rough. A l l th e little th ings that h ap pen ad d u p sim ply to the m ilk o f h u m an kindn ess, an d it is ju st as w e ll that w e have it, otherwise I th in k it w o u ld be a very g r im w o rld indeed.

T h a n k yo u , M r. President.

T h e P r e s i d e n t : Thank you, Mr. Reid.M r . G . C . J o n e s (B o ro u gh Treasurer, R e a d in g , an d President o f the Institute o f M u n ic ip a l

Treasurers an d A c c o u n ta n ts (In corporated b y R o y a l C h a rter) , U n ite d K in g d o m ) : M r. President, I w o u ld lik e to differ fro m our friend , R e x W a lk e r , because I do believe, an d I th in k it is generally held , that happiness an d efficiency g o together, never one w ith ou t the other.

O n the other h an d , I do tend to agree w ith h im on the question as to w hether dem ocracy is inefficient an d costly. I th in k it tends to be. T h e opposite, in the short term , is a m u ch cheaper form o f govern^ m e n t; in the lo n g term , I th in k , as has been proved in G erm an y , it is the most expensive form o f go vern s m ent in history.

C o m in g to our o w n w o rk , I th in k an d agree w ith everyone w h o said that P a rk in so n has done a great service th roughout the w o rld , not ju st for the present. I believe in h av in g a form scrapp in g day. I believe, also, in a liberal use o f the w aste paper basket. I d id try for a w eek after I h ad dealt w ith every letter to scrap the lo t, and I never heard any m ore from an yb o d y , so presum ably it is a useful m ethod, espec ia lly for in terd epartm en tal m em oranda.

I believe also it is better to telephone an d not w rite ; but, o f course, w e as A c c o u n ta n ts are carefu l m en an d w e lik e to keep g o o d records. I believe that dem ocracy ca n be m u ch m ore efficient. I believe w e have got to take the cue from P a rk in so n an d m ake it as efficient as possib le, so as to prove, w h e n you have com parab le statistics in So u th A f r ic a , that the dem ocratic form o f lo cal governm ent can be at least as ch eap , i f you lik e it in a costs sense, as an y other fo rm o f lo ca l governm ent. I believe w e h ave a duty to accept a ll the hints m ade today b y our speaker an d to do w h at w e can in our o w n w a lk s o f life ; bu t I th in k the cou n cillors w ill also have to do their share. It m ay be there ough t to be m ore classes for cou n cillors in w h ic h they can be taugh t in their early days lo ca l govern m ent an d lo ca l govern m ent finance, w ith refresher courses over the years to sh o w them also h o w they increase the cost o f adm inistra^ tion cau sin g m u ltip licity o f reports an d other w o rk .

I also believe, o f course, M r. Sp eak er an d M r. President, in refresher courses for Treasurers on the sam e lines. B u t even m ore so do I believe in refresher courses for certain other officers. R eference has been m ade to the apparent efficiency in the U n ite d States. I th in k w ith their h igh turnover an d their h ig h sales figures, they can afford a great deal o f inefficiency, an d w h e n the costs sh o w them selves, their inefficiency is, in fact, at a very lo w cost on a percentage basis. N evertheless, o n the profession o f Trea< surers in the U n ite d States I th in k m ost o f us k n o w that they have five C h i e f O fficers d o in g the w o rk o f w h at one T reasurer does in So u th A f r ic a or G reat B rita in . I

I do not accept the po in t that G reat B rita in has got fu ll em ploym en t ju st for the fu n o f it. I th in k it is an accident w h ic h , this afternoon in the H o u se o f C o m m o n s, is g o in g to be toned d o w n very substantially b y our C h a n c e llo r o f the E x ch e q u e r. I th in k that fu ll em ploym en t is not created by inefficiency at a ll, an d I do not accept the figures or the com p ariso n o f the article w h ic h w a s qu oted to us. I w o u ld invite you , w h e n yo u do have com parative statistics, to en deavour to com pare yo u r cost o f collections w ith ours. Y o u co u ld com pare the average b u y in g rates w ith ours an d also w ith the U n ite d States o f A m e r ic a .

T h a n k yo u , M r. President, fo r th is opportunity .

T h e P r e s i d e n t : Thank you, Mr. Jones.


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C o u n c i l l o r G . K a l k (B ra k p a n ) : M r. President, I have en joyed C o u n c illo r L e w is ’ s ch arm in g paper, as other delegates h ave done. I accept h is assurance — for he is an h on ou rab le m an — that C o u n c il lo r L e w is has quoted P a rk in so n an d that P ark in so n has not quoted C o u n c il lo r L e w is . I f he w ere not an h o n o u rab le m an , I m ight be tem pted to find an au to b iograp h ica l strain in his essay on c o m p arative ch airm an sh ip .

I w o u ld have been h ap p ier too, M r. President, i f C o u n c il lo r L e w is h ad departed from P ark in so n , bu t in the sam e strain pursued som e degree o f p ersonal in vestigation o n one or tw o topics. I h ad in m in d , for exa m p le , the top ic o f to w n treasurers, since this is a C o n feren ce o f T o w n Treasurers.

I com e fro m the reg io n w h ere a T o w n T reasurer died in h arn ess; I believe this is a record. T h ere is little virtue in e x c h a n g in g one fo rm o f rest for another.

I w o u ld also have lik ed C o u n c il lo r L e w is to pursue a P a rk in so n ian investigation into the n ew form o f m anagem ent com m ittee system.

M r. President, w e h ave a distingu ish ed guest in our m idst, M r. Jo n es . H e has m ade tw o pronounce/ m ents, one yesterday an d one today, w h ic h h ave im pressed m e in no sm all m easure. T h e first w as his statement today that happiness an d efficiency g o together.

T h e other statement w a s one that I have heard before but h ave not heard lately, an d I th in k it is a statement w e sh ou ld a ll o f us pay heed to, that po w er corrupts an d absolute po w er corrupts abso lutely . B efore the n ew m anagem ent com m ittee system w a s in tro d u ced , w e h ad a pattern ap proxim ate ly as fo llo w s. Y o u w o u ld h ave a to w n o f som e reasonable size con sisting o f nine cou n cillo rs. T h e y w ere nine m ediocrities elected by the ratepayers under som e fo rm o f persuasion w h ic h I th in k P ark in so n m ight w e ll analyse. It w a s b ad en ough that the to w n w a s ruled by nin e m ediocrities, but it w a s w orse that by an d large yo u w o u ld h ave a d iv is ion o f five to fou r, w h ic h m eant that, instead o f a particu lar position b ein g tested b y the brains o f n ine m ediocrities, it w a s tested b y the brains o f five m ediocrities, a lesser test, an d w h at they w an ted w ent. B u t n o w , S ir , chaos p revails still further. W ith in the five m em bers, three are elected to a m anagem ent com m ittee, an d these three m en, as a rule w ith little or no talent, determ ine the destinies o f a to w n o f som e thirty th ousand or m ore. I suspect, S ir , that on P a rk in so n ian lines there is a m oral som ew here. I hope that C o u n c il lo r L e w is ’ s an alytical b rain can be ap p lied to ascertain ing precisely w h a t the m oral is an d to reporting to n ext year’ s C on feren ce.

T h a n k yo u , S ir .

T he P resident : Ladies and gentlemen, I think the hour is upon us, and I w ill now ask Councillor Lewis to reply to those people who have commented on his views.

C ouncillor P. R . B . L ewis (Johannesburg): Mr. President, I do not intend being a branch line or side track chairman and enter into a debate on the merits o f the management committee system for the benefit o f those from the Cape and elsewhere.

I would like to remind Mr. W alker that there are many Parkinson’s Law s, and I would suggest that he re-read my paper because he only dealt with one, whereas in my paper I thought I had made it clear that there were many laws. I f he disputes the fact that it is the unimportant items on the agenda that take up the time, Cape Tow n is a very different place to the place I think it is.

Mr. President, I think we all know the basic truth o f Parkinson’s Law s. I intended my paper to be provocative and to poke fun. You know, we all take ourselves far too seriously. W e councillors, I think, get a wrong perspec/ tive because o f the manner in which officials refer to us. I think officials are very often placed in a very awkward position when they have to listen to

C ouncillors and O fficials as seen by Parkinson—D isc , (cont.)

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the claptrap we talk, and we, as councillors, often use our position wrongly, in that because we have the final say we give the decisions and do not pay sufficient attention to the advice we get from officials. So next time you are at a meeting, please just give thought to what are the items on which we concentrate.

Mr. Simon, o f Goodwood, took me to task for having criticised the time spent on debating the bicycle shed. W hat I tried to point out was that the time spent on that, which was a relatively unimportant item, was far too great, whereas the very important item was just glossed over. I am a democrat and feel that people should be given a chance to speak; but what I was trying to laugh at was that we tend to concentrate on those little items which are within our understanding, and perhaps do not devote sufficient attention to those items which require more consideration.

I was very glad to hear from Mr. K alk , o f Brakpan, that I am considered an honourable man. I really do appreciate that. It is one o f the few kind things that have been said to me.

Some speaker passed the remark that it was only human nature to do certain things; I have always regarded officials as human.

Mr. Simon, o f Goodwood, also suggested that it was the official’s job to keep the chairman on the right track at a meeting. I think officials wish they could sometimes do so, but some chairmen happen to try to make their own running and go their own way.

In seriousness, I would like to suggest that it would not be a bad idea i f a handbook were printed for new councillors, a handbook in which some o f the truths o f Parkinson could be enumerated, so that when councillors take office they do try to cut down the time that is spent at meetings and stick to the point. Reference has been made here this morning to something which is obvious to us all: how some people in committee, when there is no press present, stick to the point and say very little, but as soon as they think there is a chance o f their getting their names in the newspapers and splashed abroad, they w ax eloquent and are very loquacious.

Mr. President, I do want to thank you for your patient hearing. I commend Parkinson’s books to you. He has now written a new book which may not be o f interest to many o f you, but it is on how to choose a wife, and that you may get for your teenagers. It is mainly written for the bridegroom and has nothing to do with a girl. It is mainly written as to how to choose the fatherdndaw according to his capacity in business. Parkinson has dealt with how some companies get rid o f their senior officials or their directors who stay on too long. Unfortunately this cannot be applied to councillors. W hat he suggests is that, i f a person is staying on too long in these days o f

C ouncillors and O fficials as seen by Parkinson—Disc, (cont.)

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modern air travel, you should send him on missions abroad. Y ou send him perhaps from Britain to a very hot climate, and you give your officials instructions that when he gets there he is not even to be given a cup o f tea. W hen he arrives at the airport he must be rushed to his first appointment; he must be kept going all the time, given no time to settle down or allowed any free time, and immediately put on another plane. Send him then, perhaps, to a cold climate, and eventually, after being sent around like this for about six months, he decides that the job is getting a bit too heavy for for him and retires. I am afraid we cannot use that method for councillors; it would be expensive and they might like the travelling.

W ell, Mr. President, I would like again to thank you for your hearing, and hope that some o f the truths which I believe are contained in Parkinson’s L a w would have gone home. Thank you very much.

T he P resident : Councillor Lewis, thank you very much indeed for a most refreshing paper. I should hasten to add that the last remarks which you made about getting rid o f chairmen do not apply to the President o f the Institute in the United Kingdom .

I am sure that you will appreciate that it would be extremely foolish o f me if, as an officer in this gathering of councillors, I was bold enough to express any judgments whatsoever on what we have heard today. I will simply content myself with saying that it has been a thoughuprovoking paper, and I think, i f it has done nothing else, it has impressed upon us the necessity to continue to look in the looking'glass far more frequently than we have done, and perhaps as long as we retain our sense o f humour and can laugh at ourselves, all is yet well with local government. Thank you.

C ouncillors and O fficials as seen by Parkinson—Disc. (cont.)

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Second Day—Tuesday, 14th April, 1964.

AFTERNOON SESSION

T he P resident : Goeiemiddag dames en here. Good afternoon ladies and gentlemen.

This afternoon we come to the symposium and we are to hear two papers, each concerned with a different aspect o f the same subject o f financial control.

The first speaker is Mr. Harmse, Tow n Treasurer o f Potchefstroom, who will speak on “ Finansiële Beheer onder die Nuwe Stelsel van Plaaslike Bestuur in Transvaal.”

Ons het meneer Harmse gekies om hierdie referaat te lewer weens sy breë ondervinding van plaaslike bestuur in Transvaal. H y het vir twaalf jaar in verskillende hoedanighede in die Yereenigingse Tesourie gewerk en daarna was hy vir vy f jaar Assistent Stadstesourier van Kempton Park en in daardie tydperk het hy in die Instituut se finale eksamen geslaag. V ir die afgelope vyf jaar het meneer Harmse sy huidige betrekking, naamlik Stads-- tesourier van Potchefstroom beklee, en dit is dus duidelik dat hy ’n goeie kennis dra van die ou en die nuwe stelsel van plaaslike bestuur in Trans^ vaal. Met genoë stel ek meneer Harmse aan die woord.

Meneer G . H armse (Stadstesourier, Potchefstroom): Meneer die PresF dent, vergun my ’n woord van dank aan u vir die voorreg om vir hierdie vergadering ’n referaat te kon voorberei het. E k verseker u dit word baie waardeer.

Ten tweede, Meneer die Voorsitter, kan ek u verseker — u het gister in u Presidentsrede gesê dat u dit met huiwering en ’n groot mate van besorgd/ heid voorberei het. E k kan u verseker hierdie referaat was met ’n dubbele mate van versigtigheid voorberei. Dit is nou so in ons lewe dat wanneer jy enige besitting o f ’n persoonlike besitting kry wat jy weet waarop jy net vir een uitreiking in hierdie lewe geregtig is, dan word dit ’ n kosbare kleinood. In hierdie kategorie, Meneer die President, plaas ek my nek. O m daardie rede is ek baie versigtig wanneer ek horn uitsteek vir ander mense om die geleentheid te kry om daarop hulle strydbyle te toets.

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FINANSIËLE BEHEEK ONDER DIE NUWE STELSEL VAN PLAASLIKE BESTUUR IN

TRAN SVAAL

I N L E ID IN G

1. Met die inwerkingtrede van die Ordonnansie op Plaaslike Bestuur (Administrasie en Verkiesings) nr. 40 van i960 op 31 Januarie 196 1, het plaaslike bestuur in Transvaal ’n nuwe rigting ingeslaan. Die twee ver' naamste wysigings insoverre dit finansiële beheer aangaan is dat op komitee vlak die verskillende staande komitees met ’n bestuurskomitee vervang is, terwyl ’n nuwe betrekking van hoof uitvoerendebeampte met die benaming van stadsklerk op departementele vlak geskep is. Die bestuurskomitee het die funksies en magte wat voorheen deur die fïnansiële komitee uitgeoefen was oorgeneem en in hierdie opsig tree dit dan op in die hoedanigheid van ’n komitee vir geldsake. Die wyse waarop die bestuurskomitee die geldsake van ’n plaaslike bestuur behartig, sal die onderwerp van bespreking wees. O ok sal aangedui word hoe die stadsklerk daarby betrokke is.

2. Dit word geredelik toegegee dat dit ietwat misleidend klink om nou nog na meer as drie jaar van werking na ’n nuwe stelsel te verwys. Maar vir doeleindes van vergelyking sal die term mynsinsiens, deur u almal beter begryp en dadelik tuisgebring word. Inagnemende hierdie verduide' liking voel ek dat die afwyking onder omstandighede verskoonbaar is.

O U S T E L S E L

3. O m die werking van die nuwe stelsel en die veranderings wat dit teweeggebring het beter te kan begryp, sal die geldelike beheer onder die vorige stelsel eers geskets word. Daarna sal kortliks aangedui word hoe die nuwe stelsel ontstaan het en hoe dit fungeer. Dan sal oorgegaan word tot aanduiding van hoe die aard en omvang van die vorige beheer deur die nuwe stelsel gehandhaaf o f gewysig is. V ir voor die handliggende redes sal ek nie enigeen van die stelsels verdedig o f kritiseer nie. E k sal my eerder by die feitlike toestande bepaal, waarop afleidings dan ook gebaseer sal wees.

4. Plaaslike selfregering in Transvaal, soos dit trouens ook die geval is in die ander Provinsies, is die verantwoordelikheid van die Provinsiale Administrasie. D it berus by ’ n plaaslike raad van verkose lede, met die mag beklee om oor die algemeen enige handelinge en dinge te doen onder' worpe aan die bepalings van die Ordonnansie op Plaaslike Bestuur nr. 17 van 1939, soos gewysig, (die Hoofordonnansie) en enige ander wet.

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Plaaslike besture is dus kragtens wet daargestel en hul bevoegdhede, pligte en funksies word almal deur die wet beheer en bepaal, met gevolg dat hul slegs mag doen wat hul uitdruklik by hoër wetgewing gemagtig word om te doen.

5. Die Provinsiale Administrasie oefen dus administratiewe beheer uit oor plaaslike owerhede in Transvaal. Indien hierdie beheer van naderby beskou word, dui dit daarop dat die doel wat gestel word hoofsaaklik finansieël is, finansieël in die sin dat sorg gedra word dat die plaaslike bestuur die aan horn toevertrouende funksies, naamlik gesondheidsmaatreëls en goeie plaaslike bestuur, kan uitoefen. V ir hierdie doel val die hoofklem nie soseer op die vraag o f die plaaslike bestuur elke jaar daarin slaag om sy begroting te laat klop nie, maar in die eerste plek o f die verpligtings wat aangegaan word in ooreenstemming is met die geldelike dravermoë van die belastingbetalers.

6. Enkele voorbeelde van sodanige beheer bevat in die Hoofordon/ nansie en ander volg hieronder:

(a) Verpligte benoeming van ’n finansiële komitee (artikel 29).

(b) Kontrakstelsel vir die uitvoering van werke o f die lewering van goedere (artikel 35).

(c) Beheer oor die leningskuld van ’n raad deurdat die Administrateur leningsbevoegdhede moet goedkeur (artikel 52).

(d) Verpligting om behoorlike boekhouding in te stel en ’n uittreksel van rekenings jaarliks te publiseer (artikels 56/7).

(e) Verpligting om jaarliks ’n begroting van inkomste en uitgawe op te maak (artikel 58).

(f) Verpligte ouditeuring van rekords en rekenings van ’n raad (arti/ kel 59).

(g) Magtiging om ’n plaaslike bestuur te ontbind as sy finansiële toe/ stand ongesond word (artikel lyobis).

( h) Beperking op die heffing ten opsigte van eiendomsbelasting wat slegs met die goedkeuring van die Administrateur oorskry mag word. (Artikel 18 — Ordonnansie nr. 20 van 1933.)

Behalwe vir die herroeping van artikel 29, bly dit origens onveranderd onder die nuwe stelsel.

7. Ingevolge Artikel 28 van die Hoofordonnansie was ’n raad gemagtig om uit sy eie geledere sodanige en soveel komitees te benoem vir enige doel wat na sy oordeel beter deur middel van ’n komitee bestuur kon word, ’n Raad kon aan so ’ n komitee met o f sonder beperkings o f voorwaardes na goeddunke enige van sy bevoegdhede o f pligte oorgedra het, behalwe

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Finansiële Beheer in T ransvaal (vervolg)

die bevoegdheid om geld op te neem deur belasting o f lening o f enige ander bevoegdheid met betrekking tot die uitoefening waarvan spesiale voorsien/ ing in die Ordonnansie gemaak word.

8. Benewens voormelde algemene magtiging vir benoeming van komi/ tees, het die Hoofordonnansie in Artikel 29 die volgende spesifieke ver/ pligting op ’n raad gelê naamlik:

‘D ie raad m oet v a n tyd tot tyd ’ n finansiële kom itee benoem o m die geld elike sake v a n die raad te reel en te kontroleer.

Iedere bedrag u it d ie fondse v a n die raad m oet deur die finansiële kom itee uitbetaal w o rd , w a t ten m inste een m aa l elke drie m aande op ’ n gew on e vergaderin g v a n die raad v ir inform asie ’n o p gaw e v a n alle uitbetaalde bedrae m oet in d ien .’

9. D it is duidelik dat bostaande slegs die algemene, breë funksies ver/ teenwoordig. Aanvullend hiertoe was dit dan 00k gebruiklik om die meer uitvoerige funksies en pligte van die komitee vir finansies sowel as die prose/ dure wat gevolg moes word met betrekking tot finansiele aangeleenthede, in die verwysings na die komitee en fínansiële regulasies te beliggaam het. V ir elke raad waarvoor ’n bestuurskomitee ingestel is, is die bepalings van beide artikels 28 en 29 in geheel herroep.

10. Dit is opvallend dat die finansiele komitee die enigste komitee was wat ’n plaaslike bestuur volgens wet verplig was om te benoem. Gevolg/ lik moet aanvaar word dat vanweë die omvangryke rol wat finansies in feitlik elke munisipale aktiwiteit speel die Provinsiale Administrasie dit van so besondere belang geag het om die benoeming van ’n komitee om dit te beheer, ’n wetlike verpligting gemaak het. Wanneer besefword dat weinig, indien enige, afdelings van ’n raad vir lank sonder geld kan voort/ gaan, dan eers word die belangrikheid van hierdie komitee waardeer.

1 1 . Sonder om enigsins afbreuk te doen aan die noodsaaklikheid van die ander staande komitees, sal dit seker nie verkeerd wees om na aanleiding van bostaande die komitee vir geldsake as die belangrikste komitee onder die ou stelsel te beskou nie. Dit is dan 00k nie vreemd nie dat seifs in daardie provinsies waar daar nie ’n soortgelyke wetlike bepaling bestaan nie, plaas/ like owerhede tog wel so ’ n komitee benoem. Die gevolgtrekking waartoe ’n mens noodgedwonge kom is dat in die praktyk plaaslike besture nog altyd die handhawing van ’n sterk beheer oor hul geldsake as van groot belang geag het.

12 . Die gewone reeling was dat ’n plaaslike owerheid se werk gedoen was deur ’n aantal staande komitees, waaronder die komitee vir finansies, en wat maandeliks aan die raad verslag gedoen het oor hul verrigtings Die groter sentra het tot nege staande komitees gehad, terwyl in die kleiner dorpe die raad self as komitee vir verskillende doeleindes opgetree het. ’n Verdere gebruik in sommige sentra was om die finansiële komitee met die


[ 1 6 6 ]

algemene doeleindes komitee te kombineer. Elke komitee was toe vertrou met die beheer van die werk wat deur een o f meer departemente van beamptes gedoen word. Volgens hierdie reeling het die afdeling van die stadstesourier onder beheer van die finansiele komitee gestaan.

13. Hierdie stelsel staan bekend as die veelvuldige komiteestelsel. Nor/ maalweg was die komitees jaarliks saamgestel. W at die wyse van samestelling van die finansiele komitee betref het, was daar natuurlik verskeie menings van hoe dit gedoen behoort te word, naamlik uit voorsitters van staande komitees, uit lede met gespesialiseerde kennis van geldsake e.s.m. Hoe dit ookal geskied het, feit is dat dit seker van plaaslike bestuur tot plaaslike bestuur kon verskil het, nie alleen wat die bekwaamheid van die lede betref het nie, maar 00k sover dit die aantal lede wat daarop gedien het aangegaan het. Die toestand het gevolglik bestaan dat van ’n gedeelte van ’n raad tot die voile raad as ’n komitee vir finansies gekonstitueer was.

14. Die vernaamste lid was vanselfsprekend die voorsitter. Indien hy bekwaam was vir die belangrike taak wat horn opgelê was, die ondersteuning en vertroue van sy kollegas geniet het, ’n gesonde kennis van geldsake gehad het en ’n goeie verhouding met die beampte belas met die toesig oor die finansiele departement opgebou en gehandhaaf het, kon hy die sleutel posisie in die finansiele administrasie van sy stad o f dorp beklee het.

15 . Onder hierdie stelsel het ’n departementshoof direk aan die komitee wat beheer van sy departement gehad het verslag gedoen. Vanweë hul funksies en verpligtings het die uitgaweafdelings vanselfsprekend eerstens belang gehad by die uitvoering van werksaamhede met betrekking tot die verskeidenheid dienste en skemas binne hul beheer. Dit is te verstaan dat die geldelike aspek op daardie stadium as van minder belang geag was. Hoofsaak was die verwesenliking van die projek in die aanbeveling bevat.

16. Maar die daarstelling van dienste en skemas benodig meestal die allerbelangrike bestanddeel van geld om dit ten uitvoer te bring. Indien die komitee wat die aanbeveling vir uitgawe gedoen het, dit nie die nodige aandag vir sover dit die geldelike aspek daarvan gegee het nie o f kon gee nie, moes daar ’ n ander wyse gevind word om dit te bewerkstellig. Daar het dus ’n behoefte ontstaan om êrens langs die lyn a f doelmatige beheer van die finansies van ’n raad in te stel. Die benoeming van ’n onafhanklike finansiele komitee het die aanvaarde metode geword.

17. Die komitee vir finansies se plig was om die geldelike implikasies van die aanbevelings van die ander staande komitees te oorweeg. Gevolglik het dit ’n onafhanklike en sterk komitee vereis om sodanige voorstelle suiwer vanuit die geldelike gesigspunt, objektief, onpartydig, onbevooroordeeld en met voile kennis van die geldmiddele van ’n plaaslike bestuur te oorweeg en daarna ’n ferme aanbeveling aan die raad te maak.


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1 8. Dit kan dus ook gesê word dat sy primêre funksie meer ’n ekono/ miese een was, naamlik die toewysing van betreklik skaars fondse oor ’n wye veld van wedywerende eise. Piierdie toewysings moes deur die komitee gedoen word met die duidelike besef van wat in die geheel in die beste belang van die raad sou wees.

19. Die normale gebruik was dan ook dat verslae van die staande komitees na die raad gegaan het via die finansiele komitee. Die uitsondering was daardie items wat moontlik nie finansiele implikasies ingehou het nie — en daar is nie baie hiervan nie. Selfs daardie items wat nie na die raad hoef te gegaan het nie, maar wel geldelike oorwegings vereis het, is ook op hul beurt na die finansiele komitee verwys. Die gevolg was dat die finansiele komitee tydens sy gewone vergadering elke maand feitlik die totale omvang van die raad se komiteewerk behandel het.

N U W E S T E L S E L

20. V ir redes wat nie nou ter sprake is nie, is daar gedurende 1953 ’n Kommissie van Ondersoek (bekend as die Maraiskommissie) aangestel om ondersoek in te stel na die stelsel van plaaslike bestuur in die provinsie Transvaal. In sy derde en finale verslag meld die Kommissie dat weens die belangrikheid van die organe van plaaslike selfbestuur vir die volk en die ondervinding wat die Provinsie gedurende die afgelope vyftig jaar van plaas/ like bestuur in sy destyds bestaande vorm gehad het, daar na sy mening regverdiging voor bestaan dat nuwe en positiewe stappe gedoen word om ’ n hoër aansien vir plaaslike bestuur, ’n verbetering in plaaslike taak verrig/ ting en die uitskakeling van daardie kenmerke wat die ondervinding as belemmerings vir goeie bestuur aangedui het, tot stand te bring.

2 1 . Een van die aspekte van die ou stelsel wat die kommissie horn heftig teen uitgespreek het is juis die veelvuldige komiteestelsel soos dit destyds in die Transvaal bestaan het. H y het onder andere beweer:

„ F e it l ik a l die vraagstu kke w a t eie is aan m u n isipale regering in T ra n sv a a l ontstaan daaruit. V a n d a g is d ie kom iteestelsel nie ’ n deel v a n d ie p laaslike bestuurstelsel nie, dit is d ie hele stelsel . . . D ie versplintering v a n die stadsraad se beheer, toesig en b e leid sbepalin g is die essensiële sw a k h e id v a n die kom iteestelsel en die u itskakelin g daarvan sk yn alleen m o o n tlik te w ees as die hele stelsel a fg e sk a f w o rd . . . H ierd ie fragm entasie w a t met enkele uitsonderings in elke dorp en stad voo r k o m w a a r daar meer as een departem ent en meer as een kom itee is, is m isk ien die grootste enkele faktor w a t doeltreffende adm inistrasie en eerlike m u n isipale bestuur teen w erk .”

22. Voortspruitende uit sekere aanbevelings bevat in die verslae van genoemde Kommissie, het die Provinsiale Raad van Transvaal twee Ordom nansies aanvaar. Die Ordonnansie op die beheer oor Plaaslike Bestuur nr. 2 1 van 1958, het op 1 Januarie 1959 in werking getree en daarvolgens is die Adviesraad ingestel. In die geval van twee van die drie lede van die raad maak kennis, ervaring en opleiding in die finansiewese onder andere deel uit van die kwalifikasievereistes wat gestel word.

Finansiële Beheer in Transvaal (vervolg)

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23. Volgende is die Ordonnansie op Plaaslike Bestuur (Administrasie en Verkiesings) nr. 40 van i960, verder gewysig by Ordonnansie nr. 6 van 1962. Dit het op 31 Januarie 1961 van krag geword en die belangrikste kenmerke daarvan ïs die volgende:

(a ) Verkiesings van raadslede word elke vyfjaargedurende Maartmaand gehou.

(b ) Elke stadsraad moet ’n bestuurskomitee van drie lede (vyf in die geval van rade met twintig en meer lede) instel. Hierdie komitee neem die plek in van al die bestaande komitees, insluitende die komitee vir geldsake. Lede van die komitee mag vergoed word.

(c) Elke stadsraad moet ’n stadsklerk as hoofuitvoerende beampte aan/ stel, wie se salaris te alle tye hoër, maar hoogstens tien persent hoër moet wees as die volgende hoogsbesoldigde beampte van die raad, tensy die Administrateur anders gelas.

24. Ingevolge artikel 5 1 daarvan word daar vir elke stadsraad ’n bestuurs/ komitee ingestel, wat ooreenkomstig bedoelde bepalings vir die administrasie van aangeleenthede rakende so ’n raad verantwoordelik is. Alhoewel die Administrateur ’n besondere stadsraad van hierdie verpligting kan onthef, het hy aangedui dat as algemene beleid geen sodanige vrystelling verleen sou word nie.

25. Die funksies van die bestuurskomitee word onder ses hoofde in artikel 57 uiteengesit, terwyl artikel 58 voorsiening maak vir delegasie van verdere funksies, pligte en bevoegdhede deur ’ n raad aan sy bestuurskomitee onderhewig aan die voorafverkreë goedkeuring van die Administrateur. Die Administrateur kan enige delegasie aan enige voorwaarde onderworpe stel en kan enige delegasie herroep.

26. Die bestuurskomitee word, vir sover dit geldelike beheer betref, in die besonder belas met die verpligtings om jaarliks ’n begroting van inkomste en uitgawe op te stel en om toesig te hou oor die besteding van alle gelde deur die raad deur middel van sy goedgekeurde begroting beskik/ baar gestel en alle ander gelde o f fondse wat tot die beskikking van die raad gestel is. Dit kom oreen met die funksies van die vorige finansiële komitee.

27. Die delegasie van funksies, pligte en bevoegdhede aan ’n bestuurs/ komitee is onderhewig aan die voorbehoud dat die bevoegdheid om ver/ ordeninge te maak, belastings te hef o f te verminder, tariewe o f gelde op te lê o f te verminder o f om lenings aan te gaan, nie deur ’n raad aan ’n bestuurskomitee gedelegeer kan word nie. ’n Verdere voorbehoud is dat ’n raad geen voorstel tot heffing o f vermindering van belastings, tot heffing o f vermindering van tariewe o f gelde, o f die aangaan van lenings kan oor/

Finansiële Beheer in Transvaal (vervolg)

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weeg nie tensy die voorstel na die bestuurskomitee verwys is en die bestuurs/ komitee daaroor verslag gedoen het.

28. U it die voorafgaande is dit duidelik dat die bestuurskomitee in die hoedanigheid van ’n finansiële komitee optree. W at 00k bemoedigend in hierdie verband is, is om te moet aflei dat hierdie spesifieke vereistes ’ n neiging toon tot die erkenning van die belangrikheid van finansiële impli/ kasies by oorweging van sake. Aangesien finansiële oorwegings deel uit/' maak van ’ n groter geheel, word dit nie verwag dat dit noodwendig as van opperste belang beskou moet word nie. A l wat verlang word is dat dit sy onbetwisbare belangrike plek by die aanvanklike oorweging van uitgawe gegun word. Dit was nie altyd die geval nie.

29. Die Administrateur het 00k aangedui dat delegasies aan n bestuurs' komitee onder andere onderworpe sal wees dat by die uitoefening daarvan geen uitgawe aangegaan word waarvoor daar nie in die begroting voor/ siening gemaak is nie. Dit is dus duidelik dat, alhoewel die bestuurskomitee onder ’n indrukwekkende lys van gedelegeerde magte funksioneer, bly die raad te alle tye die oppergesag en die bestuurskomitee bly aan horn onder/ geskik.

30. Afdelingshoofde doen nog net soos voorheen verslag van die werk/ saamhede van hul onderskeie departemente. Hierdie verslae word nou deur die Stadsklerk gekanaliseer vir voorlegging aan die bestuurskomitee. Die geleentheid bestaan nou om alle aspekte van ’n aangeleentheid gelyktydig onder die aandag van die bestuurskomitee te bring. Sodoende kan finansiële implikasies die nodige oorweging betyds geniet.

S T A D S K L E R K

3 1. Die instelling van een bestuurskomitee in die plek van die verskiL lende staande komitees het die versplintering op komitee vlak wat die Maraiskommissie so heftigg ekritiseer het uitgeskakel. Dieselfde doel met betrekking tot koordinasie op departementele vlak is beoog met die skepping van die pos van hoofuitvoerende beampte in die persoon van die stadsklerk Ingevolge artikel 62 van Ordonnansie 40 van i960 moet elke stadsraad en waar die Administrateur dit nodig ag 00k elke dorpsraad n stadsklerk aanstel.

32. Volgens artikel 65 van Ordonnansie nr. 40 van i960 word hy, benewens enige ander funksie, bevoegdheid o f plig aan horn opgedra o f opgelê, belas met:

(i) verantwoording aan die bestuurskomitee vir behoorlike uitvoenng van alle opdragte van die raad en die bestuurskomitee, die koordi/ nasie van die werksaamhede van die raad en die algemene toesig,


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beheer en doeltreffendheid van die administrasie, organisasie en bestuur van die raad se departementele afdelings o f vertakkings; en

(ii) verantwoording vir alle kommunikasie tussen die bestuurskomitee en die raad se departemente, afdelings o f vertakkings.

33. Verslae van afdelingshoofde gaan nou na die bestuurskomitee via die stadsklerk. Die wyse waarop, sowel as die vorm waarin die verslae die bestuurskomitee bereik, hang natuurlik a f van die vertolking wat die stads/ klerk aan sy pos gee. Tydens bespreking van die nuwe stelsel van plaaslike bestuur gedurende die 1962 jaarvergadering van die Munisipale Vereniging van Transvaal het dit geblyk dat op daardie stadium daar nog nie absolute eenvormigheid van optrede aan die kant van stadsklerke was nie.

34. Inagnemende die wetlike verpligtings wat die stadsklerk opgelê is, is dit vir my duidelik dat die wetgewers beoog het dat hy moet sorg dra dat omvattende oorwegings van elke aangeleentheid reeds op departementele vlak moet begin. Die logiese optrede blyk te wees dat alle verslae, wat verkieslik skriftelik moet wees, na horn gaan waarna hy dan een omvattende en gekoordineerde verslag, dekkende alle aspekte van die aangeleentheid t.w. administratief, tegnies en finansieël aan die bestuurskomitee voorlê. ’n Duidelike en ondubbelsinnige aanbeveling van die stadsklerk sal vanselfsprekend daarin vervat moet wees. Verdere toeligting, indien verlang, kan deur die afdelingshoofde tydens bespreking by die vergadering verstrek word. Dit sal verseker dat die bestuurskomitee oor alle moontlike inligting beskik vir sy taak.

35. Aangesien die stadsklerk nou die kanaal is vir kommunikasie tussen die bestuurskomitee en departemente, volg dit dat die skakel wat die stads/ tesourier voorheen met die finansiële komitee gehad het nou verbreek is. Die stasdklerk moet nou die tesourier se verslae en sienswyse na die komitee neem. Gevolglik sal geldelike beheer op departementele vlak grootliks afhang van die gesindheid wat die stadsklerk ten opsigte van finansies openbaar. Indien die tesourier op die voile steun van die stadsklerk kan reken met betrekking tot doelmatige beheer van die geldmiddele van hul betrokke raad, moet dit vanselfsprekend baie bydra tot die sukses daarvan. Die teenoorgestelde is natuurlik 00k waar.

36. Daar bestaan blykbaar op hierdie stadium nog meningsverskil betref/ fende die bywoning van vergaderings van die bestuurskomitee. W aar die stadstesourier geen vergadering o f slegs net die gedeelte rakende sy departe/ ment bywoon plaas dit vanselfsprekend ’n groter verpligting op die stads/ klerk. Indien die stadstesourier die geleentheid gegee word om sy kommen/ taar te verstrek alvorens ’n saak die agenda haal sal dit in die opsig baie help. Mynsinsiens behoort dit die reel en nie die uitsondering te wees nie.


[ H I]

Maar dit word nogtans as essensieël beskou dat die stadsklerk ’n werkende kennis van boekhouding moet he. Opleiding in finansiële bestuur sal horn vanselfsprekend geweldig baat.

B E ST U U R SK O M IT E E Y E R V A N G FIN A N SIË LE K O M ITEE IN H O O F O R D O N N A N SIE

37. Die Ordonnansie op Plaaslike Bestuur, 1939, het onder andere in sy bepalings sekere spesifieke pligte op die finansiële komitee geplaas. Die uitskakeling van hierdie komitee het vanselfsprekend sekere wysigings in die bepalings van alle artikels genoodsaak waarin na die finansiële komitee verwys was, soos onder:

(a) Artikel 35 bepaal dat publieke inskrywings gevra moet word in gevalle van kontrakte vir die uitvoering van werke o f die lewering van goedere ter waarde van o f tot die bedrag van R600 o f meer. In dringende o f spesiale gevalle van noodsaaklikheid, goedgekeur deur die finansiële komitee, kon die raad hiervan afgewyk het, op voor/ waarde dat die finansiële komitee die redes daarvoor vermeld het in ’n verslag aan die raad voordat die besluit geneem kon word.

Die A rtikel bly onveranderd behalwe dat die woorde „finansiële komitee” deurgaans vervang is met die woord ..bestuurskomitee” .

(b) Ingevolge die bepalings van Artikel 58 moes die finansiële komitee, voor die verstryking van die boekjaar, dit wil sê 30 Junie, ’n volledige beraming van die inkomste en uitgawe vir die opvolgende boekjaar opstel en aan die raad voorlê.

Die raad kon 00k geen uitgawe aangegaan het nie tensy voorsiening daarvoor gemaak was in ’n goedgekeurde begroting.

W at begrotingsbeheer betref het daar 00k geen verandering ingetree nie want die bestuurskomitee is onderstaande funksies in hierdie verband opgelê naamlik:

(i) om ’n begroting van inkomste en uitgawe van die raad op te te stel en vir daar die doel word enige verwysing in Artikel 58 van die Ordonnansie op Plaaslike Bestuur 1939, na ’n fïnansiële komitee vertolk ’n verwysing na ’ n bestuurskomitee te wees.

(ii) Om toesig te hou oor die besteding van alle gelde aan die raad deur sy goedgekeurde begroting beskikbaar gestel en alle ander gelde of fondse wat tot die beskikking van die raad gestel is.

(c) W aar dit kragtens artikel 59 vereis was dat die uittreksel van rekeninge en Ouditeursverslag by ontvangs aan die Burgemeester o f aan die Yoorsitter van die finansiële komitee o f aan albei voorgelê moes word,


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waarna dit by wyse van opname in die sakelys aan die eersvolgende vergadering van die finansiële komitee voorgelê moes word wysig die benaming „finansiële komitee” nou na ,.bestuurskomitee.”

(d) In drie verdere artikels, t.w. 1 18, 1 3 1 en 133 word die woorde ..finansiële komitee” vervang deur die woord ..bestuurskomitee” .

B E S T U U R S K O M IT E E T E E N O O R F I N A N S I É L E K O M IT E E

38. Onder die vorige stelsel het die ander komitees aanbevelings aan/ gaande skemas waarby uitgawe betrokke was aan die raad gedoen. V an die fïnansiële komitee was dan verwag om die geldelike implikasies daarvan te ondersoek, om te bepaal o f dit bekostig kon word en indien wel die wyse van finansiering. Daar was dus onderskei tussen die verantwoordelikheid vir die verkryging van geld en die besteding daarvan.

39- A s gevolg van hierdie toestand het daar soms twyfel bestaan oor die werklike magte van die finansiële komitee, veral as hierdie komitee se aanbevelings met ander oorwegings, wat sterk ondersteuning van ’ n raad gehad het, gebots het. O ok was daar soms die beswaar ingebring dat hierdie komitee geneig was om die geldelike aspek van ’n voorstel bo ander te stel.

40. Dit kan wel aangevoer word dat by die uitoefening van sy gewone alledaagse verpligtings betreffende die beheer van die fondse tot ’n raad se beskikking, was dit selde van die finansiële komitee vereis om die terrein van die algemene beleid te betree. Die komitee se taak was om die beleid toe te pas en aanbevelings daarop gebaseer aan die raad te maak. Beleid met betrekking tot finansies was tot ’n groot mate bepaal tydens die oorweging van die jaarlikse begroting en dan was dit normaalweg bespreek en vasgestel deur groter groepe as die finansiële komitee. W ant die begroting is nie alleenlik ’n geldelike dokument nie, maar is terselfdertyd ook ’n beleidsverklaring uitgedruk in terme van geld.

4 1. ’n Finansiële komitee behoort dus teoreties gesproke sy oorwegings te gebaseer het suiwer op die geldelike oorwegings van ’n saak, sonder inagname van enige vraagstukke van beleid. Maar in praktyk is dit soms uiters moeilik om die twee te skei, aangesien geldelike implikasies beleid kan beïnvloed. Hierdke toestand is nou uitgeskakel met die vereniging van al die vorige onafhanklike komitees in een bestuurskomitee, as gevolg waarvan bepaling van beleid en die finansiële oorwegings daarvan op dieselfde vlak gebring is.

42. Die bestuurskomitee, synde die enigste komitee, is nou feitlik verplig om alle aspekte van ’n aangeleentheid tegelykertyd te behandel. Sake wat binne sy gedelegeerde bevoegdhede val word oor besluit, aangaande die res word aanbevelings aan die raad gedoen. Daar is nie meer die nodigheid


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om sake van komitee na komitee te verwys nie. Hierdie gelyktydige oor/ weging van finansies en beleid, soos dit huidig gedoen word, bied n voor/ deel wat nie onder die vorige stelsel bestaan het nie. Aangesien daar ook geen twyfel bestaan dat die bestuurskomitee alle magte van die ou finansiële komitee besit nie, verval die bewering dan ook dat die komitee vir finansies sy magte sou kon oorskry het ten koste van die ander komitees.

43. Daar kan geargumenteer word dat met n onafhanklike finansiële komitee daar meer geleentheid was om die geldelike aspek van n saak van verskeie kante te oorweeg, asgevolg van die tydsverloop tussen die vergaderings van die verskillende staande komitees en die van die finansiële komitee. Hierdie kon as ’n geleentheid vir tweede gedagtes beskou gewees het. Met ’n bestuurskomitee is hierdie geleentheid dan nou uitgeskakel.

44. Maar indien daar reeds op departementele vlak begin word met ’n omvattende ondersoek en deeghke oorweging van n saak, dan behoort die tesourier die geleentheid te hê om ten voile te rapporteer. Daarna gaan die gekoordineerde verslag na die bestuurskomiteevergadering, waar verdere toeligting, indien verlang, verstrek kan word. Dit verseker die gesamentlike oorweging van finansies en beleid op komiteevlak wat sekerlik te verkies is.

45. Dit is bekend dat die verskillende komitees n neiging tot afsondering getoon het. H ul het dikwels dan ook so opgetree. Hierdie toedrag van sake kan moontlik toegeskryf word aan die stelsel van spesialisasie wat geheers het. Elke komitee en sy departement(e) het hul streng by hul funksies en verpligtings beperk. Dit het aanleiding gegee dat daar soms ’ n gees van wedywering tussen komitees ontstaan het, wat vanselfsprekend ook om geldelike toekennings gegaan het. Die een wat sy saak die beste kon gestel het, het dan die grootste toekenning gekry, soms ten koste van ander meer dringende en belangrike sake.

46. Met een bestuurskomitee vir al die departemente is dit seker baie onwaarskynlik, alhoewel nie onmoontlik nie, dat die komitee kan bekostig om enkele afdelings te bevoordeel. En daarmee behoort die neiging tot kompetisie tussen afdelings verminder te wees. Toekenning van fondse behoort slegs op die meriete van ’ n saak te geskied.

47. Soos reeds aangedui behartig die bestuurskomitee nou alle aangeleent/ hede rakende alle departemente. Verder is dit met aansienlike gedelegeerde bevoegdhede beklee, spesiaal met die doel om spoedige afhandeling van sake te bewerkstellig. Gevolglik is daar me meer oorvleuelings met o f gedurige verwysings na ander komitees me. W^aar moontlik kan die bestuurs, komitee seifs ’ n gedeelte van ’ n item athandel, hetsy by besluit o f aanbeveling/ en die oorblywende gedeelte waaromtrent meer inligting benodig word laat oorstaan. Dit bespoedig die afhandeling van werksaamhede, daar die lyn van aksie heelwat verkort is.


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48. Voorheen was dit gebruiklik om komitees jaarliks saam te stel. Dit was tot ’n mate onvermydelik dat lede van ander komitees op die fïnansiële komitee sitting gehad het, veral in die geval waar laasgenoemde komitee uit die voile raad bestaan het. Dit kon gebeur het en het waar/ skynlik ook gebeur, dat ’n lid wat op beide komitees gedien het, homself reeds vooraf vir uitgawe gekompromiteer het, d.w.s. voordat dit deur die komitee vir geldsake oorweeg was. Met die bestuurskomitee is dit natuurlik nie moontlik nie.

49. Die jaarlikse samestelling het ook soms veroorsaak dat die lede op die finansiële komitee gewissel het. Hierdie jaarlikse wisseling was nie altyd bevorderlik met die oog op kontinuïteit in fïnansiële beheer nie. Hierteenoor kan lede van die bestuurskomitee aanbly vir seifs die voile v y f jaar. Vanuit ’n geldelike beheer oogpunt gesien sou ek meen dat dit ’n voordeel inhou, indien die lede vir ten minste twee tot drie jaar kan aanbly.

50. Dit is ook opvallend dat die bestuurskomitee uit ’n klein aantal lede bestaan, van drie tot v y f lede. Vanweë die klein aantal lede wat daarop dien is dit nie lomp nie. Aangesien feitlik die hele omvang van die raad se werksaamhede deur hierdie lede behartig word, het hul die geleentheid om goed op hoogte met alle aspekte van plaaslike administrasie te kom en ’n diepgaande studie daarvan te maak. Voeg hierby dat die lede vergoed mag word, wat nie die geval was met lede van die finansiële komitee nie, en die moontlikheid bestaan dat die lede hul taak met besondere erns en toegewydheid kan bejeën.

5 1. Dit is egter nie uitgesluit nie dat lede van die bestuurskomitee, vanweë persoonlike redes, miskien bei'nvloed kan word vir o f teen voor/ gestelde uitgawe. Die komitee kan byvoorbeeld gekant wees teen voorge/ stelde uitgawe in welke geval hul dan die geldelike implikasies kan beklem/ toon. Sou hul dit ondersteun kan daar weer ligtelik oor die finansiële oorwegings gegaan word, dit seifs tot ’n mate verontagsaam. W ant daar is mos nie ’n verdere komitee vir geldsake wat dit moet hersien nie. Dit was makliker onder die vorige stelsel vir die finansiële komitee om nee te sê ten opsigte van voorgestelde uitgawe van ’n ander komitee. Die vraag ontstaan hoe ver die bestuurskomitee dit sal handhaaf met betrekking tot sy eie aan/ bevelings.

52. Dit is vir hierdie moontlikheid dat sommige nog voel dat ten minste finansiële oorwegings toevertrou behoort te word aan ’n onafhanklike komitee vir finansies. Maar mynsinsiens hou die gelyktydige oorweging van finansies en beleid groter voordeel in vergeleke met die moontlike nadeel van onverantwoordelike optrede aan die kant van die bestuurskomitee. Daar is darem altyd die vertroosting dat die raad te alle tye die oppergesag bly en die bestuurskomitee bly aan horn ondergeskik.


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53. W at die werkverrigting van die departement van die stadstesourier betref, het geen verandering ingetree nie. D ie bestuurskomitee is vir die departement dieselfde wat die vorige íinansiële komitee was. Voorheen het die afdeling onder beheer van die komitee vir geldsake gestaan; nou is die tesourier verantwoording aan die stadsklerk verskuldig.

54. Die stadsklerk het by wetgewing die meerdere gesag. Gevolglik plaas dit mynsinsiens outomaties ’n hoër verpligting op horn om dit nie te misbruik nie. Indien die stadsklerk en die stadstesourier mekaar se posisies en sienswyses respekteer en daarvolgens handel voorsien ek nie probleme nie. A s albei beamptes besef dat hul slegs deel uitmaak van ’n groter geheel en hul onderskeie pligte in die regte gesindheid uitvoer in belang van goeie plaaslike bestuur dan behoort dit goed te gaan.

D IE S T E L S E L IN D IE P R A K T Y K55. Tydens die 1962 jaarvergadering van die Munisipale Vereniging

van Transvaal is die nuwe stelsel deeglik bespreek. Dit het geblyk dat daar nog wel verbeterings aangebring kan word, maar dat vele van die probleme wat met die stelsel ondervind word skynbaar te wyte is aan die verskillende wyses van toepassing daarvan. Oor die algemeen was dit sterk ondersteun en is bevestig dat dit ’n stap in die regte rigting was.

In hierdie verband haal ek twee gedeeltes aan uit die notule van die betrokke vergadering:

5 6 . “ M r. J . W . C o w d e n , T o w n Treasurer o f S p rin g s , gave the v iew s o f the treasurers he c o n ' suited an d dealt w ith the matter from the fin an cia l aspect. T h e general o p in io n w a s that the present system is an im provem ent on the o ld system. T h ere w a s a m o d icu m o f critic ism by som e treasurers w h o felt that there w a s a m ore friend ly understand in g (or a spirit o f partnership) betw een the finance com m ittee under the o ld system th an is the case n o w . T h ere is n o w a better control o f the financia l affairs o f the cou n cil. It is felt that the to w n c lerk sh ou ld adhere to h is task o f co/ord in ation an d leave to the in d iv id u a l heads o f departm ents the task o f p lacin g their tech n ical k n o w le d g e an d sk ill at the disposal o f the m anagem ent com m ittee. It is u n w ise for the to w n c lerk to take over the fun ctions o f the treasurer or the to w n engineer. H e is entitled, how ever, to ad d h is recom m endations to those o f the heads o f departm ents.

F ro m the fin an cia l an d econ om ic po in t o f v ie w it is w ise for the m anagem ent com m ittee to rem ain in po w er for the w h o le o f the c o u n c il’s life. T h ere is no ad van tage in the system o f h av in g an an n u al election o f the m anagem ent com m ittee as happen ed in the case o f election o f com m ittees under the o ld system . H e is o f o p in io n that the three or five m em bers o f the executive com m ittee sh ou ld be appoin ted for at least three years.

S o m e am endm ents to the present O rd in a n ce m ay be necessary an d it w il l be a g o o d th in g i f som eone w i l l com e fo rw ard w ith such am endm ents w h ic h , am o n g others, sh ou ld in c lu d e som e provisions in regard to m eetings in the m onth o f D ecem b er. H e is also o f o p in ion that to w n clerks m ust be trained in fin an cia l m an agem ent.”

Raadslid S. J . Hattingh, President:„ E k d in k ek k a n die hele saak so opsom — dat ons as ’ n K o n g re s voel dat n a die agtien m aandehierdie n u w e T ran svaalse stelsel ’n stap in die regte r igtin g w a s, dat ons voel daar is sekere sk aafip lekkies, m aar dat ons ons uitvoerende kom itee v ra o m in sam ew erk in g m et ons A d v ie s ra a d w a thier die hele tyd b y die kongres w a s, in die lig v a n hierdie deeglike besprekings, die saak verder te

»»voer.


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57- U it die praktiese ondervinding, en hul beskouings van die stelsel, van ’n aantal tesouriers wat ek geraadpleeg het, word in breë trekke die verslag van mnr. Cowden bevestig. Die meerderheid beaam dat die stelsel ’n besliste verbetenng op die vorige een is. Daar is ook nog diegene wat verkies dat geldelike beheer liewers aan n onafhanklike fínansiële komitee toe vertrou moet word. Verder word ook gevoel dat ’n tesourier te alle tye moet kan reken op die heelhartige steun van die stadsklerk, om sodoende doek matige beheer oor die besteding van die geldmiddele van ’n raad te verseker.

S L O T58. Die nuwe stelsel bied die geleentheid om die beoogde koordinasie

van werkverrigting op beide komitee' en departementele vlak te bewerk' stellig. A s gevolg van die saamtrekking van alle funksies in een komitee, is die gelyktydige oorweging van beleid en finansies moontlik gemaak. Dit het werkverrigting bespoedig en vertragings behoort tot die absolute minimum beperk te wees. Met n doeltreffende stel finansiële regulasies en behoorlike koordinasie op departementele vlak word beskou dat dit vir sover dit geldelike beheer betref’n verbetering op die vorige stelsel is.

59- Daar is nou wel nie voorsien vir al die indiwiduele neigings en afwykings van die mense betrokke nie, maar indien die toepassing geskied ooreenkomstig die gees van die wetgewing en die nodige samewerking bestaan dan is die saak op die regte pad. Myns insiens hang dit tot ’n baie groot mate a f van die gesindheid van diegene wat seggenskap het in die toepassing van die stelsel.

60. Te oordeel na die tekens hier plaaslik en elders, kan met sekerheid die stelhng gewaag word dat die stelsel gekom het om te bly. Derhalwe is dit seker elkeen wat daarby betrokke is se plig om sy bydrae, hoe gering dit ook mag wees, te lewer om dit voortdurend ’n positiewe stoot in die rigting van goeie plaaslike bestuur te gee.

Finansiële Beheer in T ransvaal—Bespreking

B e s p r e k i n g

D i e P r e s i d e n t : Baie dankie, meneer Harmse. Die eerste spreker op hierdie referaat kom van die Vrystaat af. Dit is raadslid J . Munro die eerste spreker asseblief.

R a a d s l i d J . M u n r o (W e lk o m ): M eneer die President, ek as *n V rystater w i l van h ierdie gelcent/ herd g e b ru ik m aak o m Pretoria se m um sipahteit van harte ge lu k te w ens met die versiering van hierdie

L t d * K H S S = P ^ VerSkr 1S' hCt beSHS byg£dra - * - S e n a m f g e e s w a arin

M eneer die President, dam es en here, ek w il as ’ n persoon w a t v ir d ie eerste keer hierdie kongres b yw o o n die Instituut van harte ge lu k w en s met die hoë standaard van referate w a t gelew er w o rd . W a a r ek die geleentheid gegu n w o rd o m enkele algem ene gedagtes in u m idde te le oor die referaat w a t deur meneer H arm se gelew er is, w il ek horn ge lu k w e n s met ’ n uitstekende en w e l deurdagte obiektiew e b en aden ng v a n hierdie inters belangrike aspek v a n m u n isip ale finansies. E k g lo sy goeie w erk het m e op dow e ore geval m e m aar sal v ru gb aar deur elke kongresganger geb ru ik en bespreek w o rd .

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Finansiële Beheer in T ransvaal—Bespreking (vervolg)

Dit word opgemerk dat meneer Harmse hom reg aan die begin van sy referaat weerhou van enige kritiek, maar dat hy vanaf paragraaf 3 8 wel ’n kritiese vergelyking tref tussen die ou en nuwe stelsels, en daar sekere afleidings en vergelykings maak. Ek laat dit egter aan die kongres oor om hulle praktiese kennis en menings weer te gee tot aanvulling of uitbreiding op meneer Harmse se menings, en sodoende ’ n positiewe bydtae te lewer tot ’n verbeterde stelsel van finansiële beheer.

Mr. President, ladies and gentlemen, the present system of local government in the Transvaal has given rise to much speculation amongst councillors and officials and much has been written and said about it. Although there were some who had misgivings about this innovation, I an inclined to think that the new system, although perhaps still in an experimental stage, is working efficiently. It should go far in simplifying and expediting the business of the Council. I only hope and look forward to a day when the principal ideas underlying this new system w ill streamline the relationship between local authorities and government departments.

The advantages derived from this integration of finance and policy are well known to our Transvaal delegates. Mr. J . W . Cowden, in a paper which was read at the Sixteenth Annual General Meeting of the Institute of Town Clerks of Southern Africa, said:

“There is no doubt in my mind that, in terms of modern management principles, one integrated report covering the administrative, financial and technical aspects of a scheme is better than many of the existing local government practices whereby the engineer, the town treasurer and other heads all submit independent reports to a committee and a committee makes a recommendation through the finance committee to the Council.A suggestion was also put forward at the Conference to appoint two officials: a financial and technti

cal official between the Town Clerk and heads of departments, and one of the reasons was for sound financial advice. Mr. J . J . S. van der Spuy, Chairman of the Transvaal Local Government Advisory Board, was most impressed by Mr. Cowden’s suggestion and here are his own words: Ek dink dit is ’n baie interessante gedagte en ek wil amper voorstel dat dit in die nabye toekoms verdere aandag sal geniet.” We know that Springs has already followed this improvement.

Mr President, it is certainly healthy to keep the practices and procedures oflocal government under close scrutiny at all times, and, whenever necessary, to effect improvements. Whatever system we devise financial control must always be the major consideration. Rather exercise proper control, as opposed to over simplification whereby loopholes are created.

In die offisiële koerant van die Oranje Vrystaat gedateer 3 April 1964 kondig sy Edele die Adminb strateur - ek kan amper se: „Haak, Vrystaat” - aan dat ’n kommissie van ondersoek gelas is om die stelsel van plaaslike bestuur in die provinsie te ondersoek. Die gedagte van die kommissie is die volgende:

Eerstens om te bepaal of die bestaande wetgewing in verband met plaaslike bestuur voldoende en doeltreffend is, inagnemende die eise wat aan plaaslike besture gestel word en 00k te bepaal, onder andere, of die bestaande wetgewing voldoende is om inter/munisipale samewerking ten opsigte van sake van gemeenskaplike belang te bevorder.

Tweedens die wenslikheid al dan nie om aan die Munisipale Vereniging van die O .V.S. statutêre erkenning te verleen teneinde sy hoofbestuur deur wetgewing met sekere magte en funksies te beklee en indien wel die aard en omvang van sodanige magte en funksies.

Derdens die samestelling en funksionering van plaaslike besture met betrekkmg tot die bestaande verkiesingstelsel en sy bydrae teneinde die hoogs moontlike doeltreffendheid en gehalte van diens op plaaslike bestuursvlak te verseker en of die huidige stelsel genoegsame belangstelling by die plaaslike publiek bewerkstellig. Die wyse van benoeming, of aanstelling, of verkiesing van burgemeesters, die dienstermyn en toelaes van lede van plaaslike besture, die doeltreffendheid van die bestaande komitee-

Vierdens die vraag of die bestaande stelsel met betrekking tot die aanstelling van personeel in diens van plaaslike besture, die salarisskale, verlofvoorregte, diensure en dienste ten opsigte van sulke personeel bevredigend is en of ’n provinsiale personeelraad in die lewe behoort geroep te word en, indien wel, die aard en omvang van die pligte van sodanige raad.

Vyfdens, die wenslikheid vir die instelling van ’n organisasie en metodestelsel vir plaaslike besture en indien wel op watter grondslag.

Sesdens, die vraag watter magte van die administrateur, indien enige, uitgebrei behoort te word teneinde te verseker dat staatsbeleid op plaaslike bestuursvlak uitgevoer word en in die sewende plek, enige ander aangeleentheid in verband met die stelsel van plaaslike bestuur wat nie spesifiek in hierdie opdrag genoem word nie maar wat in die loop van die kommissie se werksaamhede ondersoek mag blyk te regverdig met dien verstande dat die kommissie eers ’n gemotiveerde versoek vir die insluiting van sodanige aangeleentheid in sy opdrag aan die administrateur vir goedkeuring voorlê.

U merk dus dat die winde van verandering ook reeds oor die Vrystaat begin waai en aangesien hierdie kommissie nog nie vergader het nie, wil ek my op hierdie tydstip met geen menings komplimem teer nie, net dit dat die dienstermyn van raadslede ernstige aandag verg. Dit word egter vertrou dat iets goeds uit die werking van hierdie kommissie sal vloei.

Meneer die President, gun my nog ’n paar minute om aan die hand van meneer Harmse se referaat enkele vergelykings te tref. Ek verwys u na paragraaf 9. In verband met finansiéle regulasies maak die Vrystaat se ordonnansie spesifiek melding van die magte wat die administrateur het om finansiële regulasies vir die plaaslike owerheid af te kondig.

Paragraaf 12. In Welkom was daar tot aan die begin van 1963 slegs een komitee wat alle sake behartig het naamlik die finans' en beleidsake'komitee. Sedert verlede jaar het die Raad ’n veelvuldige komitee' stelsel in werking gestel. U is met beide stelsels se voor' en nadele bekend en ek wil der halwe nie u tyd verder in beslag neem om daarop uit te wei nie. W at egter van belang is is dat al die raadslede op die finans' en beleidsakekomitee dien. Weinige finansiële beheermaatreëls het dus verlore gegaan. Die sakelys word egter meer intensief deur die onderskeie komitees bespreek en as u nou vir my sê dat hierdie werk net sowel deur een komitee behartig kan word, dan moet ek ruiterlik erken dat dit geensins onmoontlik is nie.

Paragraaf 31. Dit is egter opvallend dat artikel 68 van die Vrystaatse ordonnansie reeds die stadsklerk as die uitvoerende en administratiewe hoof beampte van die raad aanwys. Hy is verantwoordelik vir die uitvoering van opdragte en die ko'ordineering van die werksaamhede van die raad en die algemene toesig en beheer van die departemente of afdelings van die raad. Die hoof van elke departement of afdeling staan onder die beheer van en is verantwoordelik aan die stadsklerk. Bloemfontein het reeds die pos van Klerk van die Raad geskep en die Welkomse Stadsraad sal waarskynlik binnekort ’n dergelike rigting volg.

Paragraaf 34. Die hoofde van departemente op Welkom oorweeg en bespreek die agenda alvorens dit voor die betrokke komitee gelê word vir oorweging. Ook word alle sake wat op finansies betrekking het na die stadstesourier verwys vir sy kommentaar. Hierdie prosedure bring mee dat alle sake deeglike oorweging geniet en word die stadstesourier die geleentheid gegun om ten voile oor die finansiële implikasies te rapporteer.

M et hierdie slotopm erking w il ek volstaan en ek w i l meneer H arm se nogm aals ge lu k w en s met sy referaat. D a n k ie , M eneer die President, v ir die geleentheid w a t u m y gegee het o m op hierdie referaat te atn w oord . B a ie dankie.

D ie P resident : Ons dank u baie, raadslid Munro.

Nou is dit die beurt van die Kaap. Ons ou vriend, meneer P. N. Braam, Stadstesourier van Bellville, sal die tweede spreker wees asseblief.

M n r . P. N. B r a a m (Stadstesourier, Bellville): Meneer die President, ek wil ook meneer Harmse gelukwens met sy uitstekende referaat en die bekwame manier waarop hy dit gelewer het. Tot nou toe het party van ons in die Kaap slegs met verbygaande belangstelling ag geslaan op die instelling van ’n bestuurskomitee en die stadsklerk as hoofuitvoerende beampte in plaaslike bestuur in die Transvaal. Ons het argumente vir en teen die nuwe stelsel gehoor maar het nie moeite gedoen om te diep op die meriete daarvan in te gaan nie, of hoe dit in werklikheid verskil van die stelsel waaraan ons almal gewoond geraak het. Nou het die posisie egter ietwat verander. Miskien is u bewus daarvan dat die administrateur van die Kaap onlangs meneer Slater, die afgetrede provinsiale sekretaris as ’n een' manskommissie aangestel het om ondersoek in te stel en verslag te doen oor die komiteestelsel en admini' strasie van die raad van Kaapstad. Dit word verstaan dat hy verskillende oorsese stelsels sal ondersoek en dit is logies dat die Transvaalse stelsel ook heelwat aandag sal geniet. Dit wil dus voorkom ofgunstige


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kommentaar gelewer mag word oor die beproefde goeie punte in die Transvaalse stelsel wat moontlïk ingesluit kan word by enige voorgestelde wysigings van die Kaapse Munisipale Ordonnansie. As dit wel die geval is, sal almal van ons betrokke by plaaslike bestuur in die Kaap ons diep gewortelde menings moet hersien en in hierdie opsig sal meneer Harmse se refêraat ons baie help by die praktiese taktiese toe passing van die nodige wysigings wat ’n verandering van die ou na die nuwe stelsel sal meebring.

Having come to the point where I now have to comment on the subject matter of the paper itself, I find myself in the position in which my counterparts in the Transvaal found themselves some time ago, of having to consider and weigh the differences in procedure in local government administration between what I had been trained in and become accustomed to, and new methods which vary radically from the old system. A ll those who have faced the question must have wondered how the change would affect municipalities of different level and sizes, and naturally would have concentrated mainly upon the differences applying to their own particular town. I could talk at length on how the new system in the Transvaal differs from that operating in my home town, and where, in my opinion, it is better or worse than the provisions of the Cape Municipal Ordinance for instance, but, to my mind, the result would only be platitudes of no real value to the discussions taking place here today. Rather do I feel that the purpose of the paper at this stage is to get data of the results of the change under actual working conditions, comparable to an experiment in medicine where, after doses have been supplied and administered, opinions are sought as to what effects have been obtained under different conditions from a variety of patients. We ascertain what mixtures must be retained and how the dosage should be altered to suit both adults and children of various ages.

W ith this th ought upperm ost in m y m in d , I h ad hoped that M r. H arm se w o u ld have g iven us an account o f h o w h is o w n to w n co u n c il an d h is colleagues h ad been affected by the change-over. Potch ef- stroom is com parab le perhaps w ith m ore or less seventy per cent o f the lo ca l authorities in the R e p u b lic , an d its experience w o u ld have been o f im m ense va lu e an d interest not only to lo ca l authorities o f a sim ilar size, bu t also to the b igger an d sm aller brothers.

From Mr. Harmse’s statement in paragraph 57, it seems that other Treasurers consulted all consider that the new system is an improvement on the old in a general sort of way, but they are reluctant to give specific and detailed opinions of improvements as well as any disadvantages, together with suggestions as to how the efficiency can still be further improved. I would like to suggest that officials, that is Town Clerks, Town Treasurers or Town Engineers should inform their respective Institutes of difficulties which are common to all municipalities and submit solutions, if any, of the problems, so that the collective body can do something positive about it.

I must exclude Mr. Cowden from the remarks that I have just made, as he has already made a valuable contribution in this respect, as set out in paragraph 56 of the paper. I excuse myself from the charge that I do not practise what I preach by pointing out that, because of my lack of actual experience, I am forced to rely on the following general observations only.

The aim of changing the system of local government administration was, and will be, a streamlined procedure. However, the advantage of replacing the ox wagon with the motor car will depend largely upon opinion, facility and circumstance, and in some of the smaller towns the ox wagon must perforce still be used. It is these varying conditions that should be considered when drafting laws, and I again wish to express here, as I have done on many other occasions, my view that to cover all local authorities with one blanket is wrong, and that the only reasonable way is to divide local authorities into three separate groups, for example, large, medium and small, and legislate for each type of group. In this particular instance, happily, there is no need for any separation, but this is not always the case. A t this stage, I feel that I should make way for others who can make a more valuable contribution towards securing perfection in the legislation on this subject. W e should use this golden opportunity to prove to those individuals who advocate otherwise, that, for the conscientious delegates, discussions that take place at these conferences are of great value, not only to the delegates themselves but also in respect of the issues arising therefrom, which benefit all municipalities as well.

V o o r ek gaan sit w il ek ons da n k uitspreek aan meneer H arm se v ir sy w e rk met die voorbereid in g v a n ’ n referaat w a t ’ n w aardevo lle aan w in s sal w ees v ir enige bib lioteek oor m u n isipale aangeleenthede.

T h a n k yo u , S ir .

Finansiële Beheer in T ransvaal—Bepsreking (vervolg)

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D ie P r e s i d e n t : Ons is dank aan u verskuldig, meneer Braam, baie dankie.

Ons derde spreker is meneer van der Spuy die voorsitter van die Advies^ raad, Transvaal. Ons ken almal meneer van der Spuy baie goed. Voor sy aanstelling as voorsitter het hy baie ondervinding gehad beide as amptenaar en as raadslid en met plesier vra ek horn om die konferensie toe te spreek, asseblief.

M n r . J . J. S . van d e r S p u y (Voorsitter, Raad van Advies insake Plaaslike Bestuur): Geagte Meneer die President, dames en here, meneer Harmse verdien ons dank en waardering vir die bekwame wyse waarop hy sy onderwerp behandel het. As ’n mens sy referaat ’n paar keer deurgelees het, soos ek die voorreg gehad het om te doen, vind jy dat hy op kort en bondige wyse daarin geslaag het om die aandag te vestig op die wesenlike verskille tussen die ou en nuwe stelsels van die Transvaalse Provinsie betreffende finansiële beheer. Graag w il ek horn daarmee van harte felisiteer.

Mr. President, as one would expect, Mr. Harmse has, in the very first paragraph of his paper, drawn our attention to the most important changes brought about by the i960 Transvaal legislation. Quite rightly and very succincdy he has stated that on the committee level the management committee has replaced the finance committee. On the departmental or organisational level, the town clerk has been elevated from the position of being a primus inter parius to that of principal officer or chief administrative and executive officer, with certain prescribed powers or duties.

When the new Ordinance was drafted, care was taken that at least all the powers which the finance committee could exercise in terms of our Local Government Ordinance were given to the management committee.

In paragraphs 8 and 26 of his paper, Mr. Harmse has shown that we have done just that in so far as the exercise of financial control by the management committee is concerned. In other words, the new Ordinance gave the management committee the same legal powers in regard to financial control as had been enjoyed by the finance committee under the old system. But that, to my mind, is by no means the end of the story in so far as the management committee’s powers relating to financial matters are con/ cerned. One should not look at Section 57 of Ordinance No. 40 of i960 alone in order to determine the powers of the management committee in regard to financial matters. This section merely deals with the basic powers, if I may use that expression, of a management committee. I am afraid that we are inclined to overlook, or not to pay sufficient attention to, the provisions of Section 58 of the new Ordi/ nance, dealing with the further powers which may be delegated to a management committee. Mr. Harmse, it is true, has touched on this subject in paragraph 27, but, with respect, I wish to say that the importance and far reaching effect of Section 58 should be emphasised to a far greater extent. I shall explain why I feel that this should be done.

The provisions of the new Ordinance regarding the establishment of a management committee apply not only to the largest city council but also to the smallest town council. It does not automatically apply to village councils. When these provisions were drafted, it very soon became apparent that it would be a matter of impossibility to lay down in detail what functions, powers and duties should, or could, be entrusted to all management committees. It is inconceivable that all powers which Johannes/ burg regards as essential in order to cope with the work in an efficient manner should be delegated to the management committee of, say, Volksrust. There is such a vast difference in the volume of work to be dealt with by the two councils I have just mentioned. There are also the differences in approach which there must be of the respective councils. It was important, therefore, to provide for the necessary elas/ ticity as regards the powers of the different management committees. This was achieved by allowing councils, depending upon the circumstances of each case, to delegate such powers to their management committees as they deemed fit. It is probably platitudinous to say that, as a rule, the larger and more progressive local authorities will, and indeed must, delegate more functions to their management com/ mittees than the smaller, and usually also more conservative local authorities. The point I wish to stress is just this: due to the large diversity existing amongst local authorities, the legislation had to be elastic and this elasticity was provided by means of allowing councils to delegate powers. I have


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said it before, but I wish to repeat, that the right, if not the duty, of a council to delegate certain of its powers to its management committee lies at the very root of the management committee system. With/ out proper delegation this system cannot function properly. This, by the way, is one of the reasons why delegation, in terms of the new Ordinance, is made subject to the Administrator’s approval in contra/ distinction to the position under the old provisions.

From what I have said I am sure that you will realise that the manner in which financial control is exercised under our new system of local government cannot be seen in its proper perspective by merely studying the provisions of the new Ordinance. To my mind, it is absolutely necessary to do much more than that. You will have to make a detailed study of the powers delegated by each council to its management committee; but you will also have to consult our standing orders and, even more important, the standard financial regulations or bye/laws which we are in the process of drafting. A close examination of the draft standard financial bye/laws will reveal that, in regard to financial control, the treasurer still occupies a key position, only perhaps more so if that is possible. In respect of certain matters it is expected of him to take the initiative; but in respect of others departmental heads are required to furnish him with written reports. It is his bounden duty in respect of a host of other matters to submit written reports to the management committee, via the town clerk of course. Such reports should, to my mind, be transmitted to the management committee in the form received by the town clerk. He has the right and, I think, also the duty to add his own remarks or recommendations or to submit the treasurer’s report under cover of his own report. The important factor here is that the management committee should have the full facts. It is our policy not to allow delegations to the management committee or officials to be made in the different sets of byedaws, but in these different sets the word “council” is defined as including the management committee or any officer acting within the powers vested in the council in terms of relative byedaws and which have been delegated under the provisions of Section 58. It will, therefore, also be necessary to refer to the various byedaws which have a bearing on the matter.

Mr. President, Mr. Harmse has made the important point in paragraphs 41 and 42 that the manage/ ment committee is in the favourable position, some would probably say invidious position, of con/ sidering the policy and financial aspects of a particular matter at the same time. These questions are, of course, not considered without a full report by the departmental heads concerned and the town clerk. This point the author of the paper makes in paragraph 44. Without any hesitation, I say that I am convinced that this is the ideal position for a committee to be in. I give preference to a system where the body whose duty it is either to dispose of a matter or to submit a recommendation thereanent is placed in the position of giving simultaneous consideration to all facets affecting such matter. Some people will probably argue that an independent committee will have a more objective approach. Others will say that too much power is placed in the hands of the management committee, consisting as it does of only three or five councillors out of a total membership of nine, twelve, twenty/one or forty/ two, as the case may be. And then, of course, there is the odd person who may advance the argument which I had the privilege of listening to in this same hall — it was made by the author of a paper coming from down south — that the management committee, sitting behind closed doors, can perpetrate all sorts of things which could quite easily be evil things. This last/mentioned argument is, of course, utter nonsense. A management committee may only dispose of such matters which it is allowed by the council to do, and it is, in addition, in duty bound to report in full to the council. A management committee is no secret society. It has the right to sit behind closed doors and occasionally, I would imagine, does so, but more often than not, indeed as a rule, you will find certain councillors and depart/ mental heads attending such meetings. What is more, the practice has now shown that, in the majority of cases, agendas of management committees are circularised to all councillors prior to such meetings. In other words, all councillors are kept fully informed of all matters to be considered by the management committee as well as of resolutions taken by it. The council with all of its nine, twelve, twenty/one or forty/two members, without a shadow of doubt remains the supreme body under our system. If it is not satisfied with the recommendation of its management committee, it is entitled to turn it down or to amend it. If such recommendation is adopted the council assumes full responsibility and the recommen/ dation becomes the council’s resolution. Our standing orders now provide that a debate in respect of matters disposed of under delegated powers should also be allowed, not to nullify the decisions or action taken by the management committee, but to allow a full discussion on matters with which councillors may be dissatisfied or in respect of which further information is required. This discussion could, in


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some cases, ultimately result in the revocation of certain delegated powers or, in extreme cases, in the adoption of a motion of censure or of no confidence.

Mr. President, I need not say much about the position of the town clerk vissd'vis that of the treasurer. It is true that the town clerk is responsible for all communication between the management committee and, inter alia, the treasurer’s department, and in a sense it is possibly true that the direct contact which the treasurer had with the finance committee no longer exists between him and the management com/ mittee, but this, to my mind, does not affect his position very materially. His duties and responsibilities have in no way been changed. He still remains the council’s expert on financial matters. In this respect, he has not been, and can never be, ousted by the town clerk. It is true that his reports to the management committee are to be sent via the town clerk, and the latter has the added duty of submitting his own recommendations, but this, to my mind, does not entitle him to withhold from the management com/ mittee the expert opinion or recommendations of the treasurer on financial matters, which are so vital to every local authority. For these reasons, I cannot say that I find myself in full agreement with Mr. Harmse’s statement in paragraph 35, namely that financial control at departmental level will depend largely on the attitude adopted by the town clerk in respect of financial matters. In the event of a differ/ ence of opinion existing between the town clerk and treasurer, which could have a serious effect on the council’s affairs, such difference should be settled by the management committee there and then. And it goes without saying, Mr. President, as far as I am concerned, that such questions should be thrashed out in the presence of, and I repeat in the presence of, the treasurer, as indeed all financial matters should.

Meneer die President, ek is byna klaar. Die Transvaalse bestuurskomiteestelsel is vanoggend deur twee persone by die hare ingesleep in die refêraat van Raadslid Patrick Lewis wat met een woord skitterend was. Persoonlik voel ek dat sy voordrag van hierdie referaat niks anders as manjifiek bestempel moet word nie. Vir my het dit ’n ietwat ontsierende effek gehad en om verdere ontsiering daarvan te voorkom het ek my aan deelname aan die debat onthou. Ek voel tog dat aangesien dit nou meer ter sake is, ek in alle billikheid teenoor diegene van u wat die stelsel nie ken nie, die saak in die regte lig moet stel. Ek stem saam dat mag tot korrupsie aanleiding kan gee en sodoende 00k absolute mag tot absolute korrupsie, maar die persoon wat wil beweer dat onder ons stelsel absolute mag verleen is of seifs dat mag vrye teuls gegee is, verstaan ons stelsel glad nie. Ek herhaal wat ek voorheen gesê het dat net daardie magte waaroor die raad besluit aan ’n bestuurskomitee opgedra word en daardie bestuurs/ komitee moet ten voile aan die Raad rekenskap doen van wat hy verrig het. Die indruk wat my dierbare vriend, meneer Walker, miskien geskep het dat die bestuurskomiteelede nou oor alle mag beskik, is totaal verkeerd. Die verdere suggestie — as dit een was — dat die stelsel tot korruptiewe praktyke aan/ leiding kan gee, is om die minste daarvan te sê — en ek sê dit met baie groot respek — besonder onge/ lukkig. Ons behoort nie vergelykings te tref nie en daarom volstaan ek deur te sê dat nog nie een so ’n geval van korrupsie of korruptiewe praktyke aan ons bekend geword het nie sedert ons stelsel in werking getree het nie. Verre sy dit van my om te beweer dat dit nooit sal voorval nie. As dit mag voorkom glo ek dat dit eerder aan menslike swakheid as aan die stelsel toegeskryf moet word. Omdat ons in die Transvaal voorkeur verleen aan demokratiese doeltreffendheid eerder as aan demokratiese ondoel/ treffendheid, het ons die stelsel ingevoer. Die tempo in die Transvaal is veels te vinnig om ondoel/ treffendheid te duld, al is dit dan 00k maar net om raadslede besig te hou, soos blykbaar gesuggereer was. Ons hou raadslede op ’n ander wyse besig en ek mag net 00k sê dat in die stede word hulle besig gehou, almal van hulle, deur in komitees te dien. Ek glo dat daardie flagrante verkwisting van tyd en geld ten opsigte van ’n beuselagtigheid waarvan meneer Walker ons die verslae getoon het, by ons nie sal voorkom nie. Soos ons ge/eerde besoeker van Groot Brittanje, meneer Jones, en dan 00k meneer Kinsey, glo ek dat die hoogste doeltreffendheid die grootste bevrediging verskaf. A l is ek miskien self nie meer tot al hierdie dinge instaat nie, sal niks my verhoed om dit naarstiglik na te strewe nie.

B aie dan k ie , M eneer die President.

T he P resident : Mr. van der Spuy, I thank you very much for that spirited defence of the Transvaal system of management committees.

Ladies and gentlemen, time is certainly against us this afternoon and I w ill, with your permission, at this stage ask Mr. Fiarmse to reply to the observa' tions which have been made on his paper.


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M eneer G . H armse (Stadstesourier, Potchefstroom): Meneer die President, as gevolg van die tydsbeperking wil ek net al die sprekers wat op my referaat kommentaar gelewer het baie hartlik bedank. E k is besonder bly dat die voorsitter van die Adviesraad taamlik lank daaroor gepraat het en ek is bly dat hy gemeld het dat waar probleme ontstaan kan dit departemen/ teel uitgewys word en dan kan dit verder geneem word.

Ek w il net ’n paar regstellings maak. Raadslid Munro het gesê ek het kritiek gelewer. Ek dink dit is net ’n kwessie van sy interpretasie en my inter-' pretasie van afleidingsverskil.

Meneer Braam het gepraat van meer praktiese voorligting in paragraaf 57. E k wil horn net daaraan herinner dat ek aanvanklik gesê het ek w il nie graag my nek uitsteek nie. W as dit uitsluitlik ’n Transvaalse Kongres hierdie kon ek meer daaroor gepraat het, Meneer Braam.

Met betrekking tot wat meneer van der Spuy gesê het oor paragraaf 8, delegasie (Artikel 58). In my oorspronklike rowwe aanslag het ek horn volledig uiteengesit. Ek is heeltemal bewus van die belangrikheid daarvan, maar ek moet daarop wys dat hierdie referaat teen ’ n tydbeperking gelewer moes word en as sulks moes ek baie uitsny wat ek graag nog meer wou toegelig het.

Dan wil ek 00k net op ’n ander punt kommentaar lewer en dit is para/ graaf 3 5 en wat meneer van de Spuy gesê het — ek is bly dat hy daardie houding inneem — maar ek w il tog tot ’n mate nog met horn verskil, dat wat behoort te wees en wat werklik kan gebeur twee dinge is. Die ander geval kan 00k voorkom, die verskil dat die tesourier se verslag heel moontlik nie kan voorgelê word nie, o f dit gebeur is ’ n ander saak, maar die moontlik/ heid is daar dat dit nie in die regte lig voor ’n bestuurskomitee kan kom nie.

Verder nogmaals baie dankie aan al diegene wat kommentaar gelewer het.

T he P resident : I thank you very much indeed, Mr. Harmse, on behalf o f the Institute. W e greatly appreciate the time that you have put into this paper. I can assure you we have all enjoyed it, and we hope that, as one o f the up and coming Tow n Treasurers o f the Transvaal, we shall see and hear more o f you.

T he P resident : Y ou are now about to hear a paper by Mr. Galletly, Treasury Accountant, Salisbury, entitled “ The Finance Committee: Its Role, Function and Duties.”

Mr. Galletly was born and brought up in the United Kingdom . I f I may say so with respect to my President on the left, he was fortunate enough to escape to the kindlier climate o f Southern Rhodesia whilst still in his forma/ tive years. He took first place in the Institute’s Intermediate and Final examinations in 1954 and I 95<5, respectively.


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The paper we are about to hear shows the reverse of the Transvaal medal, and in following the debate I think we should bear in mind Mr. Harmse’s claim that in the management committee system financial considerations and policy are co-ordinated simultaneously. I think I should also take the precaution of saying that, in the same way as the Institute is not necessarily responsible for the views expressed by speakers, I am not necessarily responsible for the views expressed by my C h ief Accountant. Thank you.

Mr. Galletly.

M r . I. A . B. G alletly (Treasury Assistant, Salisbury): Mr. President, ladies and gentlemen, I would like to thank you, Mr. President, and the Institute Council, for the honour you have accorded to me by inviting me to present a paper to this Conference.

THE FINANCE COMMITTEE:I T S R O L E , F U N C T I O N A N D D U T I E S .

T he Finance C ommittee : Its R ole, Function and Duties

“Economy no more means saving money than it means spending money. It means the administration of a house, its stewardship; spending or saving, that is, whether money or time, or anything else, to the best possible advantage.”

R uskin

IN T R O D U C T IO N

i . W hilst the management committee system adopted in the Transvaal provides a popular topic for discussion throughout local government circles in Southern Africa, this heretic from north of the Limpopo, feeling very much like Daniel in the lions’ den, attempts to outline, as a complement to the previous paper, the role, function and duties of the traditional finance committee. This paper also endeavours to trace the relationship of that committee with the council and with other committees, concluding with an examination of ways and means by which dynamic management of the council’s finances may be achieved, without usurping in any way the democratic form of local government. A t the outset, it must be emphasised that the paper does not constitute a plea for the retention of the customary committee system vis-a-vis the management committee system; it merely suggests that by recognition and acceptance of fundamental principles it is possible for a local authority to align closely its mode of operation to accepted methods of modern business management, thereby enabling it to refute any criticism of circumlocution, procrastination, frustration or delay in the management of its affairs.

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T he Finance C ommittee (continued)

T H E I N T E R N A L O R G A N I S A T I O N O F A C O U N C I L

“ The best government is that which teaches us to governourselves.”

G o e t h e

2. A council is ultimately responsible, as the paramount body, for the determination o f policy and for supervising the execution o f that policy. Because o f the wide range o f activities under its control it is necessary for the council to effect such division o f labour among its members as will enable it to fulfil its duties without making unreasonable demands upon the services o f those members. This division o f labour is achieved by the establishment o f committees to which the council delegates, absolutely, or under orders o f reference, certain defined and specific duties. A council will endeavour, in devising its committee structure, to establish effective links between itself and the administration besides providing for an equitable apportionment o f duties amongst the members. Because a large number o f committees would require a high degree o f co-ordination and demand an undue proportion o f chief officials’ time in attending committee meetings, even to the possible detriment o f the administration’s efficiency, the number o f committees should be confined to the absolute minimum. Furthermore, the allocation o f duties to committees through orders o f reference and delegation should ensure, as far as possible, that heads o f departments are responsible to only one committee. Whilst the council will, and where required by the Provincial Ordinance must, reserve unto itself the right to make certain decisions and determine major policy, it should strive to delegate to its committees responsibility for settling routine matters and the supervision o f administration; at the same time, responsibility for the execution o f policy should be delegated to the heads o f departments. Nevertheless, caution must be exercised in this respect as Professor K . C . Wheare, observed:

“ It is im portan t that a righ t b alance sh ou ld be struck betw een the po w ers o f a cou n cil an d the po w er o f its com m ittees. I f too m u ch pow er is g iven to com m ittees, they w i l l b eg in to act as in d e- pendent b o d ies; they w i l l be reluctant to co-operate w ith other com m ittees o f the c o u n c il; there w il l be a la ck o f co-ord in ation in c o u n c il w o r k ; an d there w i l l be attem pts at em p ire -b u ild in g or com m ittee im perialism at the expense o f each other — It encourages th em to believe that they are little cou n cils in them selves.” 1

3. The exact nature o f each committee’s duties will vary according to the local preference and the traditions o f each council, influenced by the requirements o f the appropriate Provincial Ordinance. Most o f the committees will have operating or vertical responsibilities, in that they will be required to control sectors o f the municipal administration and to submit recommendations upon matters covered by their orders o f reference to the council for determination. It will be readily seen that i f the committee

1 “Government by Committee” by K. C. Wheare, F.B.A.

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structure o f a council was comprised only o f vertical committees a high degree o f co-ordination would be required at the level o f the council itself, since each committee would be acting independently. Because the council itself is essentially a debating chamber and is unsuited to the task o f coordination, machinery should be established at committee level to perform this task and thereby expedite the conduct o f business in council. This machinery can be found in the creation o f functional or horizontal committees, charged with the responsibility o f co-ordinating the activities o f the vertical committees in matters o f common application and concern; such matters embrace uniformity in buying procedures, formulation o f common conditions o f service, and the determination o f departmental establishments and grading schemes; but by far the most important subject o f common concern is finance with its attendant implications, because there is no municipal activity which does not carry with it a financial connotation. Therefore, there is a vital need to repose in the finance committee the functional responsibility for supervision o f the Council’s finances, promoting uniformity in financial administration and procedures and providing a common service. Dr. A . FI. Marshall one o f the world’s foremost authorities upon local government finance, acknowledges that—

“horizontal contrivances of this kind tend to complicate the administrative machinery and restrict the freedom of committees and, however well conducted the local authority’s business may be, bring occasional irritation or friction.”1

Nevertheless, it is essential to establish some body outside the council itself which must sift and analyse all financial proposals, in order that due consideration may be given to economic factors as well as the ability o f the council to finance any proposed expenditure in the light o f existing levels o f taxation, rentals or tariffs. Operating committees and departments alike tend to let their zeal for particular projects run away with them unless some independent body exists to weigh the economic implications o f each scheme. The Report o f the Machinery o f Government Committee (the Haldane Committee) remarked, “ on the whole experience seems to show that the interest o f the taxpayer cannot be left to the spending departments.” 2

1 “Financial Administration in Local Government” by Dr. A. H. Marshall, C.B.E. (City Treasurer of Coventry).

2 Report of the Machinery of Government Committee, 191 8 . Cmnd. 923 0 p. 18 .

The Finance C ommittee (continued)

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T H E R O L E A N D F U N C T I O N O F T H E F I N A N C EC O M M IT T E E

“Rathen ist nicht zwingen” (“ To advise is not to compel1’)G e r m a n P r o v e r b

4. It follows that the finance committee should screen and sieve all financial proposals. It must weigh the economic merits and demerits o f each proposal and examine the manner in which the contemplated expends ture is to be financed; its judgment must be impartial and unbiased; it must be careful, in its considerations, not to encroach upon the preserves o f the sponsoring committee by expressing an opinion upon the intrinsic value o f the scheme itself and it should commend to the council the proposed course o f action from a purely financial viewpoint.

5. In this concept it is the duty o f the finance committee to advocate the proposed course o f action but it should not be invested with the power to determine whether or not a particular scheme should proceed. This decision must remain the prerogative o f the council, as it would be contrary to the principles o f democratic government for a committee to possess powers o f veto over proposals emanating from another committee. The finance com/ mittee, in spite o f its primary function, should not enjoy greater or lesser privileges than any other committee in its relationship with the council. Consequently, it is considered desirable for the finance committee to be seen in the role o f financial adviser to the council and its committees rather than as an autocratic body within the council itself, governing through financial controls the activities o f other committees.

6. This notion has not been accepted in the Transvaal “ owing to the provision in the Provincial Ordinance, which compelled a council to give the finance committee powers o f regulation and control over all munici/ pal finances and prevented it from voting any item o f expenditure except on the recommendation o f the committee .” 1 Sir John Maud acknowledged this provision to be admirable but explained that it arose by accident and through ignorance. Be that as it may, the principle adopted in the Transvaal regarding the status o f the finance committee and perpetuated in the manage/ ment committee system, is alien to the advisory role o f the finance committee, which is the concept advocated in this paper.

7. Apart from its role as adviser, the finance committee is expected to promote uniformity in financial procedures by establishing through codified regulations, approved by the council, the pattern according to which the financial work o f the council is to be conducted. These regula/ tions should define the manner in which the annual estimates are to be

1 “City Government — The Johannesburg Experiment” by Sir John Maud.


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prepared, the methods by which budgetary control is to be exercised and supplementary estimates granted, the procedures for the award o f contracts, the payment o f accounts, travelling and subsistence allowances, the collec/ tion o f income, the conduct o f insurances, the maintenance o f inventories, stock and imprest account records. It is axiomatic that the chief finance officer is responsible to the finance committee for ensuring that the financial regulations are observed, but the committee’s role as promoter and super/ visor o f financial procedures is the more important because it is the co/ordi/ nating link between the finance department and the council.


C O M P O S IT IO N O F T H E F I N A N C E C O M M IT T E E

“An ounce of discretion is worth more than a pound ofknowledge.” T T,

6 I t a l i a n P r o v e r b

8. Having outlined a concept o f the finance committee’s role and func/ tion, the next aspect to be examined is its composition, as one may well ask how a council can operate a stable financial policy i f the finance com/ mittee acts towards it in a capacity which is purely advisory. In the first instance, the size o f the committee will depend upon local circumstances, but i f its advice is to carry weight upon the floor o f the council chamber it is essential for the committee to reflect all shades o f opinions in the council as a whole and to be sufficiently sure that, save on the exceptional occasion, its acts will be approved by the Council. Dr. Marshall observes that “ any committee whose prestige depends on the acceptance by the council o f its recommendations must have a sufficient membership for the committee’s views to permeate the council.” 1 Consequently, it is desirable for a council to have flexibility in determining the number o f members to be elected to the finance committee each year.

9. A t this stage it is perhaps pertinent to enquire what are the qualifi/ cations for membership o f the finance committee. Dr. Marshall concludes that the distinctive layman’s judgment is the essence o f the contribution o f the member. Professor Wheare emphasises the same point when considering how long a chairman o f a committee should hold office; “ the merits o f a long term for a chairman are obvious. He gets a chance to learn his job. A n d it is probable that no chairman o f an important local government committee has really learnt his job effectively until he is in his third year as chairman. But after that time dangers beset him. He has got into the saddle; he can answer any questions about his committee’s work; he has his chief officials where he wants them or, at any rate, he thinks he has, and they cherish the same belief about him ; the council knows him and he understands their ways. This is the picture o f the successful chairman.

1 “Financial Administration in Local Government” by Dr. A. H. Marshall, C.B.E.

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T w o dangers in particular must be guarded against. The first is that he has acquired the administrative point o f view and he may have become in practice almost an official himself. A n d he may have lost the layman’s attitude and have become almost an expert.” 1

10. It is for this reason that Dr. Marshall places a reservation upon the suitability o f accountants and stockbrokers for membership o f the finance committee. “ W hilst an accountant or stockbroker can apply professional experience and a readier understanding o f financial problems, he has limi/ tations; he may find it more difficult than the layman to rid himself o f preconceived notions about financial matters; he may be tempted to go beyond the function o f an elected member into that o f a paid official, thus antagonizing both official and other members, who may be fearful o f his acquiring too great an influence. Provided, however, he can avoid these pitfalls, he can make a valuable contribution.” 1 2 Selection to the finance committee can be based upon seniority, as membership o f that committee is regarded in many councils as a prized position; it can also depend upon the predilections o f those members who have a natural bent for finance, but in most cases the committee includes a number o f the most influential members o f the council so that it can win prestige in the eyes o f the council and carry conviction with that body. In some local authorities the chairmen o f the operating committees are elected to form the finance committee under an independent chairman; this practice has its dangers as log/rolling is encouraged whilst eminently suitable members may be denied election to the committee because they are not chairmen of operating committees. Conversely, some councils specifically bar chairmen o f operating committees from membership o f the finance committee; this practice, too, is open to criticism for by it, those who are probably the most influential members o f the council are excluded.

1 1 . It can be concluded, therefore, that there is no “ best” method o f selecting the members o f the finance committee and one should look to personal attributes and qualities as the criteria upon which selection is to be based, bearing in mind the need for the committee as a whole to gain and hold prestige in the eyes o f the council. The attributes and qualities to be sought are a discerning mind, a willingness to conduct impartial appraisals without undue leanings towards any one committee, an austerity o f outlook, combined with a deep understanding o f the council’ s affairs and an ability to act with firmness in the face o f possible unpopularity.


1 “Government by Committee” by K. C. Wheare.2 “Financial Administration in Local Government” by Dr. A. H. Marshall, C.B.E.

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D U T IE S O F T H E F I N A N C E C O M M IT T E E

"Quicken yourself up to duty by the remembrance of yourstation, who you are and what you have obliged yourselfto be.” „ . T,

T h o m a s a K e m p i s

12 . Frequent reference has been made to the need for the finance commit' tee to stand high in the esteem and respect o f the council; in fact, this should constitute its chief aim, particularly i f the notion o f its advisory role is to be accepted. The committee should be a co-ordinating instrument, not an obstructive or destructive force. I f either o f these two forces are attributed to the attitude o f the finance committee, it can be concluded that the committee has failed to attain the prestige required o f it.

13 . It must not be presupposed, however, that each and every criticism o f a decision or recommendation made by the finance committee strikes at the very root o f the committee’s prestige, but it does place upon that committee the need to prove conclusively that it reached its decision or recommendation only after a close, detailed and impartial examination o f all the facts, as viewed against the background o f the local authority’ s finances as a whole. Failure to demonstrate that proof by citing the considerations which led to the decision or recommendation can well cast doubts upon the integrity and good standing o f the finance committee, and it is for this reason that the committee must be able to refute any imputation made against it; otherwise, even i f the committee includes most o f the influential members o f the council, it will lose some o f its prestige and once such a set o f circumstances has been created all future decisions and recommendations will undergo closer scrutiny on the floor o f the council chamber. A s soon as such scrutiny becomes apparent to the public at large, (probably through the medium o f the press), and i f the committee’s replies are unconvincing, the esteem in which the committee has been held might be lowered and public apprehension over the conduct o f the council’s finances may well ensue.

14. The remaining duties o f the finance committee are more specific in character. It should be charged with the task o f supervising the finances and financial administration o f the local authority and to this end it should be given adequate power o f supervision and o f reporting default to the council; in this way, regularity o f conduct and purity o f administration can be obtained. The committee should also be responsible for keeping the council informed o f its financial position and reporting the extent to which its financial aims are being achieved. It must have the power to comment upon all proposed actions involving finance and appraise the financial results o f all the council’ s activities. In short, the committee must


[ 1 9 1 ]

ensure that it supplies to the council all the data and advice appropriate to the top level o f management.

15 . The committee’ s responsibilities should also include the collation o f annual estimates, their presentation to council with recommendations and the sifting o f all proposed additional or new expenditure outside the budget. Finally, the committee must be responsible for the exclusively financial work o f the council, including the regulation o f payment ot accounts, collection o f income and the supervision o f the treasurer s depart/ ment; it must ensure that all levels o f management are being supplied with appropriate information, examine the financial position o f the counci , and compare financial performances with the budget, as well as manage the raising o f loans, the conduct o f insurances and the investment o f reserve

funds.

T H E F I N A N C I A L D U T IE S O F O P E R A T I N G C O M M IT T E E S

“Knowledge o f my way is a good part o f my journey.”A. W a r w i c k

16 The duties o f the finance committee having been defined, this survey now ’ studies the financial responsibilities o f the operating committees, as the finance committee could well become immersed in a mass of detail i f it were charged with an all embracing responsibility for financial matters and implications. A s stated earlier, in devising the committee structure of a council it is desirable to provide, as far as possible, for the head o f each spending department to be responsible to only one committee. This w ill minimize the period each head spends in attendance upon committees, thus enabling him to devote the maximum time possible to the admimstra/ tion o f his department. A part from this consideration, the linking of each department to a particular committee automatically provides the base upon which to frame the orders o f reference and delegation to each committee. T o a degree, this notion introduces specialisation within the committee structure and facilitates the selection o f members, because members predilec/ tions towards certain services can be readily accommodated. Because ot the multiplicity and variety o f the services rendered to the community by a local authority, operating committees can be likened to suUmanagement committees established in many commercial or industrial firms; they cannot be granted full executive authority for all matters because that is, and must remain, the prerogative o f the council. Nevertheless, the operating commit/ tees in providing the link between the administration and the council, should be charged with the responsibility o f supervising the administration o f departments under their control, including all budgets relating to those

departments. 119 2 j


17 . Consequently, the operating committees should have a primary responsibility, subject to review by the finance committee, for the finances o f the departments lying within their aegis. From an operational viewpoint, they have a duty to recommend to the council, via the finance committee, the plans, specifications and estimate o f each capital project. They should also satisfy themselves that the annual revenue estimates furnished by depart' ments are justified and necessary, and should make any amendments as may be deemed expedient before submitting their recommendations to the finance committee; in addition, they should measure actual performance and results against approved estimates and enquire into any undue variations from the budget with a view to eliminating waste or introducing economies. In performing the latter duty regard should be paid to the levels o f adminis' trative onoost rates, including the methods and equity o f their apportion' ment, the magnitude o f departmental stock holdings, and the various labour, material and transport recovery rates. Measurement o f the adequacy o f tariffs, fees and rentals also falls within the purview o f operating commit' tees and they should sponsor any desired amendments to the council, after scrutiny by the finance committee. Finally, operating committees should satisfy themselves upon the urgency and need for any additional or new expenditure not included in the budget before making any recommendation to the finance committee and council.

T H E R E L A T I O N S H I P O F T H E F I N A N C E

C O M M IT T E E T O T H E O P E R A T I N G C O M M IT T E E S

” W e give advice, but we cannot give the wisdom to profit by it.”

L a R o c h e f o u c a u l d

18. By charging operating committees with primary financial responsi' bilities in respect o f the departments under their control, it is believed the task o f the finance committee in conducting a continuous review o f the council’s finances overall will be facilitated. Nevertheless, the finance com' mittee, in the exercise o f its duties, may be obliged, on occasion, to ask operating committees to investigate certain matters affecting the finances o f a particular department or service. Such incursions could give rise to friction between the operating committee concerned and the finance commit' tee but the latter should remember its role o f adviser and try to arrange for the investigation to be conducted by mutual agreement. It is desirable, therefore, for the utmost goodwill and cooperation to be promoted between committees through informal discussions between the chairmen or, i f neces' sary, joint meetings, in order that respective viewpoints may be exchanged instead o f friction being created by the passing o f formal resolutions.


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19. Another form o f liaison may be utilised when the annual estimates are under consideration. The conflicting claims o f the operating committees must be analysed by the finance committee against the background o f the council’ s finances. The latter committee, in conducting the analyses and determining the order o f priorities which it proposes to recommend to the council for adoption must, o f necessity, have regard to the viewpoints o f the respective committees and, in order to obtain a better appreciation o f those viewpoints, it can be helpful i f the chairman o f the finance committee attends meetings o f the operating committees when they are considering their estimates. A t all costs the finance committee should avoid becoming involved in the merits o f schemes and when suggesting cuts in the estimates it should leave to the operating committees the decision as to where the pruning knife (rather than the axe) is to be employed.

20. Emphasis has been placed upon the need for the finance committee to co-ordinate the financial affairs o f the council without creating friction between committees. It can proceed a long way towards attaining this objective i f it aims at reinforcing rather than reducing the sense o f financial responsibility in the operating committees; it should take into its hands only those financial functions which the operating committees cannot perform without a co-ordinating instrument. However, even with the best o f intentions, a difference o f viewpoint may at some time arise between the finance committee and an operating committee which has to be settled by the council itself. By means o f its Standing Orders a council should provide for any dispute between committees to be reconsidered by each committee before being submitted to the council for determination, so as to avoid public debate when the difference o f viewpoint first manifests itself. Furthermore, when opposed points o f view cannot be reconciled and the matter is placed before the council for decision, provision should be made in the council’ s rules o f debate for the chairmen o f the two committees to present their respective cases at the commencement o f the debate so that no undue weight is given to the case o f either committee by virtue o f the sequence o f speakers.


B A S IC P R IN C IP L E S FO R TH E A T T A IN M E N T OF D Y N A M IC M A N A G E M E N T

“ Principles develop themselves fa r from develops among them.’ ’

men; conduct

J e a n P a u l

2 1. In summary, the following basic principles are advocated in order to attain streamlined financial procedures between the administration and the council through the medium o f the committees:

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(a) Wherever possible, each head o f a spending department is responsible to only one committee;

(b) Each committee receives delegated powers from the council to regulate the conduct o f departments under its control and determine routine matters;

(c) Each vertical committee has not only operational but also primary financial responsibilities for the departments under its control;

( d) The finance committee acts as an adviser to the operating committees and the council, and is entrusted with delegated powers to carry out specific financial duties on behalf o f the council.

W A Y S A N D M E A N S O F S E C U R I N G D Y N A M I C M A N A G E M E N T

“Expense of time is the most costly of all expenses’’

T h e o p h r a s t u s

22. It is not sufficient to establish lines o f communication or delegation between the administration and the executive, co-ordinated where necessary by horizontal committees, unless complementary steps have been taken to ensure that all necessary data is placed before committees in such a form as to enable them to make a decision or recommendation without asking for additional information. Professor Wheare observed, “ Committees are ready to talk, but they are reluctant to read; even i f they are able and willing to read, they are unable to write — they cannot draft. Committees prefer to go round a difficult point rather than to go at it; committees are anxious to finish, and consequently they are ready to postpone. From these general qualities there arise those desperate attempts to shelve responsibility — the setting up o f a small sub-committee, the calling for a further report or more information, the seeking o f information about what is done in other local authorities, the calling for consultation with other committees or other interested bodies.” 1 Consequently, it is the duty o f the administration to prescribe the manner and form in which reports are to be submitted to committees for consideration. Conciseness in reporting is essential and it is also desirable for all departmental viewpoints upon any matter to be coordinated and submitted in one consolidated report by the head o f department responsible for the particular service or operation. The report should outline clearly the nature o f the problem, the considerations to be weighed, the alternative courses o f action which can be pursued and the course recommended; the report should aim, wherever possible, at framing a


1 “Government by Committee” by K. C. Wheare.

[ 195]

policy rather than determining the action to be taken in a particular case. W hen any proposal involving expenditure is to be examined, the report should include details o f all the financial implications, both in the short and long term, so that members o f the operating committee may measure the impact o f the proposal upon the council’ s finances. It follows, too, that the finance committee should examine the same report when it com siders the operating committee’s recommendation.

23. Bearing in mind Professor Wheare’s observations, local authorities can well consider the advisability o f adopting some o f the methods of management reporting in common use in the United States o f America, designed to prevent the immersion o f management in a mass o f paper and detailed statistics. One o f the methods employed and advocated involves the projection o f graphs, drawings and diagrams upon a screen to illustrate performances against budgets and indicate probable and possible future trends. This system, which can be utilised by all levels o f management when examining data appropriate to their respective levels, induces a higher degree o f concentration amongst the audience and reduces fatigue as the viewers are not distracted from the subject under discussion by the rustling o f papers or the temptation to peruse other items on the agenda; in addition, the manner o f presentation reduces the amount o f written data required and highlights key features in graphic form, tending to leave a more lasting impression in the minds o f the members than can be achieved by any mass o f neatly typed figures.

24. Another means o f securing dynamic management is to ensure that committees do not perform essentially administrative work. In some author rities, for example, schedules o f accounts for payment are submitted to all spending committees before any payment can be effected; surely this is unnecessary i f the requisite authority has already been given and the treasurer is satisfied that the payment can legally be made! The council s financial regulations are the means o f achieving this end as they should regulate and control the conduct o f the local authority’ s financial affairs by the admimstra' tion. However, the regulations should be supplemented by a duty manual for each officer associated with the financial administration in which not only the duties but also the responsibilities attaching to his post are defined; in this way clear cut levels o f responsibility and accountability are established throughout the local authority’s financial administration. To discharge its duty in this respect it behoves the finance committee to review the financial regulations at periodic intervals and satisfy itself that officers duty manuals are being kept up to date.

25. The committees should also examine from time to time the need for statistical reports submitted to them by the administration. Familiarity breeds contempt, and far too frequently one finds that reports which have


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been submitted in the same form for a number o f years are merely glanced at and noted by the responsible committees in a matter o f seconds, yet several hours may have been devoted to the compilation o f the data by the administration. The need for the report may no longer exist!

26. Finally, protracted committee meetings can be avoided i f the council and its committees confine their activities to the formulation o f policy, and by delegation, subject to any legal restrictions, leave the carrying out o f that policy to heads o f departments. Acceptance o f this concept will do much to eliminate routine committee work where items o f a similar nature appear on the agenda with monotonous regularity.

C O N C L U S I O N

‘ ‘ W hatsoever thou takest in hand, remember the end, and

thou slialt never do amiss.”

E c c l e s i a s t i c u s

27. A brief outline o f principles together with a few suggestions o f ways and means by which councils may conduct their financial affairs in an expeditious manner is all that can be included in this short paper. However, it is hoped that the paper will stimulate discussion and cause delegates to review in the light o f these observations committee and adminis^ tration procedures “ om huíle eie vuurhaart” .

D i s c u s s i o n

T h e P r e s i d e n t : Our first speaker on this subject will be Councillor Colonel W ood, Chairman o f the Finance Committee, C ity o f PietermaritZ' burg.

Councillor W ood, please.

C o u n c i l l o r C o l o n e l C . W . W o o d (Pietermaritzburg): Mr. President, I think you must have been in possession of the paper on Parkinson’s Law before you asked me to speak on this subject, because I think I can hardly better what Mr. Galletly has put across and yet I am going to speak on it. I

I would like to congratulate Mr. Galletly on this paper. It certainly shows up the traditional finance committee in a very good light. I hope it will cause those who had thought of throwing the tradition^ alists to the lions to change their minds.

Perhaps it would be possible for us to become dynamic, streamlined and very useful members of the municipal world if we were given one more chance to put into practice the principles put forward today. I have little or no fault to find with this conception of what the finance committee should be. Now to be more practical. Every day and in every way the task of municipal government becomes more complicated. The heads of departments become more and more specialists in their own spheres and it is extremely difficult for the ordinary councillor, unless he gives his full time to the job, to be fully informed as to what is going on. To be able to achieve dynamic management, to prevent the expense of time, which is the most costly of all expenses, and to prevent the waste of public moneys through wrong decisions, it is very necessary to have some horizontal committee, which, while not interfering with the rights of the vertical committees, will bring the full facts, financial and technical details and what have you to the notice of the committees concerned.

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As Mr. Galletly says, it is the duty of the finance committee to sieve and screen all financial proposals, but how can this be done if it is not ixr possession of all the facts. I believe the frustration, delay and criticisms which are linked with the name of municipal government nearly all stem from this one point: that many municipalities have not got an efficient and expert horizontal committee.

A ll councils are at the greatest pains to see that they appoint to their staffs experts at the head of each department, but do they make sure that they make use of these brains to the best advantage; Surely much time and labour could be saved if these experts could be called together by the town clerk — or if you would like to call him the chief executive officer — once or twice a month, to discuss and report upon all the difficult and controversial matters. You might call the gathering a departmental committee. Many councillors may say that such a committee might tend to assert the functions of the council itself, but this cannot be as council always has the last word. To my mind, such a committee could marshal all the facts, and prune them of all unnecessary details and technical verbiage, of which we get so much in these huge agendas and which tend towards delay and frustration. The committee would submit the facts in a concise majority or, if necessary, a minority report. It may be said that this has nothing to do with the finance committee, but I submit that it has a direct bearing, as all major matters have a very definite financial implication.

Perhaps such a committee is envisaged by Mr. Galletly in his paragraph on the ways and means of securing dynamic management.

Since writing this I have heard the paper on the management committee system in the Transvaal, and I would like to state here and now that, as an ex/regular soldier — I have been a regular soldier most of my life — I just hate the idea of regimentation in any matters pertaining to municipal govern/ ment.

To turn to the composition of the finance committee, this must be decided as to size on local con/ ditions, but the members must be chosen on the one councillor one vote system. Now I do not suppose that will work very well in the Congo, because there probably would not be many of us left. To try to choose your committee by any other means is likely to lead to unpleasantness and frustration amongst councillors. The fact that a councillor has given loyal and faithful service to the municipality for many years should in no way influence council voters, as this might be the very reason why such councillor should not be elected. To meet modern trends and developments it is very necessary to have new ideas, and although some old experienced councillors may fit the bill, this is by no means certain, and it must be left to the good judgment of voting councillors.

In the same way a new councillor, who may have gained his seat by putdng across a gimmick to the electorate, may appear to be very progressive, but many may be entirely unsuitable. With the tremendous progress going on at the present time, when councillors have to make the decision whether to embark on long/term planning with all its financial implications, and decide upon other equally important matters, obviously the selection of all committee members is of paramount importance, especially where it is a finance committee.

For the finance committee to be held in esteem by the rest of the council it must prove that it does, in fact, carry out detailed impartial and close examination of everything that comes before it, and it is by their results that they must be judged.

It is doubtful whether any matters affecting the finances of a particular department should be investi/ gated by the finance committee as such, as this would surely cause irritation and resentment amongst the vertical committee councillors and heads of departments. When irregularities occur it must always be the council, possibly acting on a report from the finance committee, who actually appoint the investi/ gating committee, which may well include a member of the finance committee and the treasurer.

As to joint committees, these may be highly desirable, if such items as the acquisition of trading undertakings or big housing schemes are being considered, and these meetings should, of course, be held very materially if they are in possession of a departmental committee report. The difficulty with such joint committees is to decide on the chairmanship. The question of delegation of powers is a very important one, and much work by committees can be avoided if heads of departments are allowed to make use of the powers which they have. So often committee members, by their wanting to have a finger in the pie, cause committees to usurp the powers already delegated to responsible officials, which causes delay, frustration and ill feeling.

The Finance C ommittee—D iscussion (continued)

[ 1 9 8 ]

The delegation of powers must be strictly prescribed and adhered to if good results are to be obtained.As Chairman of the Finance Committee in my second term of office, I still believe, Mr. President,

in this old-fashioned method of hoping to control the finances of our city, but I would add that I agree wholeheartedly with Mr. Galletly’s dynamic approach. If we can cut out the red tape, the delays and all the other irritations, which it is quite possible to do, then the old finance committee can hold its own with any other method devised in modern times.

Thank you, Mr. President.

T h e P r e s i d e n t : Ladies and gentlemen, our second speaker this after-' noon is Councillor Botha, o f Germiston.

Councillor Botha, please.C o u n c i l l o r J. H. B o t h a (Germiston): Mr. President, before commencing with the few remarks

that I wish to pass this afternoon, allow me, Sir, to congratulate Mr. Galletly on this very well worked out paper. It is clear that Mr. Galletly has really made a thorough study of his subject.

Mr. Galletly, in his paper, has put forward an interesting case for the finance committee, which, although charged with considerable responsibilities, is seen as the financial adviser to the council and its committees rather than an autocratic body within the council itself, governing through financial controls the activities of other committees.

While this is a fine ideal to strive for, I wonder whether it is a practical one, bearing in mind the complexities of local government administration today and the ever pressing problem of trying to provide more and more amenities from the limited sources of revenue which are available.

A ll councillors who have worked under the committee system for a number of years, will have met those spending committees who advocate new projects involving considerable costs with the greatest enthusiasm, and who seem to regard the finance committee as a fairy godmother who should produce more and more revenue to finance their pet schemes without increasing the assessment rates or the charges for services. They also know those empire building heads of departments who gain the wholehearted support of their particular standing committees for their plans for expansion. They will know, too, councillors in general who approve a balanced budget after much pruning of expenditure votes and then seem to consider that, once this distasteful task has been completed, there is no necessity to burden standing committees or departments with strict financial control or to frown on excess votes.

These are the practical issues with which the councillors and officials charged with the supervision of a local authority are faced, and I am afraid that the benevolent finance committee which Mr. Galletly advocates will not solve them. I am much more in favour of the strong finance committee of the Transvaal Ordinance which has now been replaced by the management committee. I do not think that the strong finance committee or its successor, the management committee, is the autocratic body which Mr. Galletly seems to imply. One of the main functions of these committees is to administer and to control the financial affairs of the local authority within the framework of the budget approved by the council. The council, in effect, outlines its policy in the budget, and the committee must come back to the council for approval if for any reason it wishes to depart from that policy.

It is not unreasonable to expect individual councillors, when they have discharged their functions as policy makers in so far as the budget is concerned and have handed over to the finance committee or the management committee the difficult task of seeing that departments operate effectively within the framework of the budget, to abide by the rules and not to consider that they are at liberty to come forward with new schemes involving additional expenditure not provided in the budget. Schemes for providing additional amenities for the public will always have a popular appeal, and it is not difficult for a councillor — perhaps embarrassed by election promises — to lobby considerable support for his pet scheme, perhaps on the understanding that he will support the schemes of other councillors. If these councillors were at liberty to bring such schemes to the council for adoption without reference to the finance committee or the management committee for consideration and approval, the results could be chaotic and the council, as the policy framing body, might be faced with unpleasant decisions involving increased assessment rates or charges for services or reduction in the level of amenities provided when the next budget had to be balanced. No reasonable finance committee or management committee


[ 19 9 ]

turns down sound proposals involving minor departures from the approved budget, because these do not necessitate a complete review of the financial position to establish whether the council can afford them. But when a considerable increase in expenditure is involved, it is far wiser to refer the matter for consideration with the new estimates. Then it is possible to have a complete review of the finances of the local authority and to consider the merit of all new proposals.

In conclusion, Mr. President, thank you for affording me this opportunity of replying to this paper.

T h e P r e s i d e n t : Ladies and gendemen, our last guest speaker this afternoon is Mr. Dakers, who is the Tow n Treasurer o f Stilfontein.

M r . P. D a k e r s (Town Treasurer, Stilfontein): Mr. President, ladies and gentlemen, I am sure delegates have found Mr. Galletly’s address concise and stimulating, and I wish to join the two previous speakers in congratulating him on its presentation.

I agree with him wholeheartedly when he states that the number of committees should be confined to a minimum and that more responsibility should be placed on the heads of departments for the execution of policy.

Mr. Jones, in his address, said that there can be no sound government without sound finance and no sound finance without sound government. I think he was specifically referring to the finance committee.

Finance, of course, is the essence of a council’s life, and it may be urged with some confidence that the best way to build up an adequate finance committee is to compose it of members who are not chairmen of other committees. It makes possible an effective minority representation in finance; it secures a genuinely independent view of the committee’s finance as a whole; it leaves the financial officers free from the special pressure to which they may easily become subject when chairmen of committees have, as members of the finance committee, special and direct access to them; and lastly, it makes for a more critical and objective attitude to estimates when no member has a direct interest in the result of their scrutiny.

Mr. Galletly is the first to codify regulations as a means to promote uniformity in financial procedures. Here I must agree with him and go even further and suggest that these regulations should be standardised, not only in the Transvaal, but in all provinces, according to the legislation governing each province. Then we would have the ideal that Mr. Galletly seems to be striving for and I quote his paragraph 26 in which he says:

“Protracted committee meetings can be avoided if the council and its committees confine theiractivities to the formulation of policy, and by delegation, subject to any legal restrictions, leave thecarrying out of that policy to heads of departments.”Thank you, Mr. President.

T h e P r e s i d e n t : Before calling upon Mr. Galletly to reply, is there any other delegate who would like the opportunity to make a few quick obser/ vations on this paper;

Thank you. Councillor de K ock, from Klerksdorp, please.C o u n c i l l o r C. J. De K o c k (Klerksdorp): Mr. President, I am not going to keep you long.

I will make a few very short observations, but I cannot let this opportunity go by without congratulating Mr. Galletly for a gallant defence of a dying old friend. He has certainly gone to considerable length to defend the old finance committee system somewhat at the expense, as he tries to show, of the much attacked Transvaal system. By now you have gathered that I am a very strong protagonist of the new Transvaal system.

I have noticed that throughout his paper Mr. Galletly acknowledges — without saying as much — the importance of the financial aspect of municipal government. Whether he is trying to create a sort of peace treaty between the finance committee and the other operating committees I cannot say. It may be very nice to have peace in the council, Mr. President, but not at any price. What is rather remarkable to me is that, in summing up what he suggests as dynamic management, he places on the finance committee the terrific burden of not only being advisers to the council but also to all the other committees. That, surely is the first Parkinson Law mentioned this morning in its purest form.

T he Finance C ommittee—D iscussion (continued)

[ 200 ]

I do think, Mr. President, that it is a good thing that we should keep on attacking the Transvaal system, because in that way we would eventually purify it to be exactly what it is intended to be. If we are looking for a dynamic management in local authorities, then that is the way in which it would be found. A ll the duties which Mr. Galletly is here trying to allocate to the various committees is done by this one small committee, not as an autocratic all-powerful body, but, as was very clearly explained by Mr. van der Spuy under the previous paper, one elected, appointed by the council and subject always to the council as the head. So, all this work being done in one small committee surely is nearer to dynamic management than all these vertical operating committees and the finance committee being loaded with all that extra work.

There is only one other point I want to raise. As I said before, I am a very strong protagonist of the Transvaal system, but I am not quite happy about Mr. van der Spuys’ reply or reaction to Mr. Harmse’s paper on one point. I raised the question yesterday morning under your Presidential Address, Sir, of the status of the treasurer, and that is the one weakness which I see in our Transvaal system today. If we recognise the financial aspect of municipal government as being so very important — as we have been trying to make out over years and also in this Conference right from the beginning — then surely we must recognise that the financial adviser of the council is a very important man and that he should at least be required by law to be present whenever matters of financial aspects are considered, particularly when his own report is being discussed. I hope Transvaal authorities will take note of this point, and that they will provide that the treasurer has to be present at the management committee meeting when his report or any other financial matter is discussed.

Mr. van der Spuy said: “Well, he should be there”, but I told you yesterday morning that I was astounded to hear from delegates here that there are management committees who do not invite the treasurer to be present when his report is discussed. That is the one weakness which I must admit, strong supporter as I am of the system, and I hope the authorities in the Transvaal will rectify it.


T h e P r e s i d e n t : Ladies and gentlemen, I now call upon Mr. Galletly to reply to the observations made on his paper.

M r . I. A . B . G a l l e t l y (Treasury Assistant, Salisbury): Mr. President, ladies and gentlemen, I would like to thank the four speakers to the paper for the kind remarks that they made, and I will try and deal with the points that they raised.

Councillor W ood supported the creation o f horizontal committees but wondered whether heads o f departments sitting as a committee could not do a little bit o f sifting and analysing to facilitate the conduct o f business through the committees when they examined the particular matters under discussion. For my part, I feel that a committee o f heads o f departments embraces heads who are not associated with, or not necessarily interested in, the subject under discussion, hence the suggestion that instead o f the town clerk, as is done in the Transvaal — and this is no criticism — the head primarily responsible for the service under which the matter fell, should be the co-ordinating body to present the paper, together with the various departmental reports from the other departments, to the responsible committee. The independence o f the treasurer under that system is in no way usurped. It merely means that the operating committee has the advantage o f a co-ordinated report o f all heads o f departments’ views before it when it is examining the proposal. I f the matter has a financial connotation, it will


[ 2 0 1 ]

then go to the finance committee, where, i f the finance committee is true to its colours, it will turn to the treasurer for further financial advice i f it is not satisfied with the data which is placed before it. The whole intention o f the proposal before you is that the full financial data shall be placed before both the operating committee and the finance committee when they are examining a financial matter.

Heads o f departments as a committee would, too, tend to usurp the inde/ pendence o f the treasurer, inasmuch as i f he was party to the recommendation o f a head o f department, it would be said: “ Irrespective o f the fact that you are a dissentient, the rest o f the heads o f departments are in favour o f the proposal and, therefore, we will accept the united view o f the heads o f departments” , and yet several o f those heads o f departments may have no interest at all in the matter under discussion.

The whole essence o f the proposal in paragraph 22 o f my paper was to enable the treasurer to give an impartial appraisement before the matter reached the committee. By virtue of the whole matter being originated at departmental level, it was envisaged that the treasurer would be able to make a complete and impartial appraisement o f the matter under discussion before it was submitted to the committee, instead o f each head o f department being called upon to submit independent reports which would be considered simultaneously by the committee.

Councillor W ood said that he opposed regimentation: so do I. I believe that the whole essence o f local government should be co/ordination, with the finance committee acting in an advisory role and respecting the principles o f democracy, in that the council, and the council only, makes the final decision, and that no committee should have any power to restrict any operating committee from sponsoring a scheme to the council.

Councillor Botha asked i f the advisory role which I have advocated was really practical, and then proceeded to demonstrate the problems that con/ front most councils regarding the provision of amenities with inadequate resources. I am a strong advocate o f long/term development programmes, as I believe that i f these are framed realistically, with correct orders o f priority approved by the council, the question o f a committee coming forward halfway through a year with an ambitious proposal for a particular amenity would be overcome, inasmuch as the committee would merely put it on to next year’ s five years’ development programme and it would take its place in the queue. In other words, a little bit o f fore/planning will overcome many o f the difficulties that Councillor Botha foresaw through the operation o f the finance committee in an advisory role.

Mr. Dakers suggested that no chairmen o f operating committees should serve on the finance committee to prevent the question o f log rolling. Never/

T he Finance C ommittee—Discussion (continued)

[ 202 ]

theless, I believe that there is no best method and that you must look for the criterion which I outlined in my paper as the basis upon which to select suitable members to the finance committee.

In regard to Mr. Dakers’s plea for standardised financial regulations, first and foremost you have the problem in South A frica that you have got four provinces, each with different ordinances affecting local government. W ithin those provinces you have urban areas ranging from cities to small towns, and I do not believe that you can produce a standardised set o f financial regulations which will do duty for the largest city and the smallest town. I believe that financial regulations must be framed according to the size o f the urban area which is being administered.

I thank Councillor de K ock for his references to my defence o f a dying friend and suggestion that I was trying to negotiate a peace treaty. I would say that, no matter how many committees you may have, it should be the dominant thought, as was said by A dm iral Tait, a former Governor o f Southern Rhodesia, that we are all o f one company; and to the extent that the finance committee can reinforce financial responsibility into the vertical committees, so too will that finance committee have the support o f the vertical committees when it gets to the council, because they will be acting in concert with one another and not independently o f each other.


T h e P r e s i d e n t : Ladies and gentlemen, I have reached the stage now where I can only be described as a confusionist chairman. However, what/ ever personal conclusions we may have reached on this matter, we have heard a presentation o f financial concepts this afternoon and, I think, this morning, which will no doubt be a challenge to ourselves and o f special interest to our distinguished visitors from the United Kingdom .

Mr. Galletly, on behalf o f the Institute and Conference, I thank you very much for the presentation o f that slightly provocative paper this afternoon.

N ow , ladies and gentlemen, in bringing today’s session to a close, I must thank you very much for your patience in sitting through to this relatively late hour.


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Third Day—Thursday, 16th April, 1964.MOKNING SESSION

T h e P r e s i d e n t : Good morning ladies and gentlemen. Goeiemóre dames en here.

I have pleasure in letting you know that a cablegram has been received from the United Kingdom Institute reading: “ Best wishes from the I .M .T .A . in the United Kingdom for a successful Conference.”

In introducing Mr. Haygarth to you this morning to present his paper on “ Differential Rating” , there are just a couple o f points I would like to make about this gentleman.

The title o f the paper we are to hear is, i f I may say so, in inverse ratio to the weightiness o f both the printed paper and its contents.

Mr. Haygarth is the Deputy C ity Treasurer (Accounting and Finance), Durban. I believe his subject is a somewhat burning topic in that part o f the world and possibly, as you will see later, the conflagration has spread beyond the boundaries o f Natal.

Mr. Haygarth is rising with meteoric speed in the Durban Corporation and I am assured that he has a very fine future in local government.

Mr. Haygarth, may I introduce you to Conference and would you take the podium, please?

M r . G . H a y g a r t h (Deputy C ity Treasurer (Accounting and Finance), Durban): Mr. President, ladies and gentlemen, thank you very much for your words o f introduction. I think you have been too kind to me for, at the very outset, I must say that I am only a correspondent student o f this subject. A s such, I must say how extremely grateful I am to those persons in other countries who have had the patience to reply, not only to the first set o f questions, but also to the subsequent queries arising therefrom, and I only hope that I have interpreted their replies correctly.

Mr. President, when you wrote to me — and at this juncture may I say how grateful I am to you and to your Council for such an invitation — you gave me the opportunity to write as much as I liked, and that I did, provided the address was limited, and that is my problem now. For pur/ poses o f brevity I intend summarising certain sections, in other places merely drawing attention to certain aspects, and finally, in others reading a portion o f the paper.

[ 2 0 4 ]

DIFFERENTIAL RATING

I N D E X

S e c t i o n I

PARA.

I N T R O D U C T I O N

1. The early development o f the Rating System . i .o i /

2. Problems facing Local Government in the Use o f the existing Rating System—

A . Applying the Ability/to/Pay Principle . . 1 .0 6 /

B. The Taxation Problem arising from Peri/Urban Development. . . . . 1 .3 4 /

S e c t i o n II

D I F F E R E N T I A L R A T I N G D E F IN E D . . 2 .01 /

S e c t i o n III

T H E P R I N C I P L E A N D O P E R A T IO N O F D I F F E R E N T I A L T A X A T I O N G E N E R A L L Y

1. Differentiation in National T axation . . . 3 .0 3/

2. Differentiation in Local Taxation . . . 3 .10

(a) Differentiation within the Local Rating Struc/t u r e ....................................................................3 . 1 2 /

(b) Differentiation achieved by the Use o f OtherMeans o f Taxation . . . . . 3 . 2 4 /

S e c t i o n TV

D IF F E R E N T IA T IO N B Y M E A N S O F C O M /P O S IT E O R S IT E R A T I N G . . . 4.01 /

NOS.

I.04

1-33

1.40

2.03

3-09

3.23

3-35

4.12

[ 205 ]

Section V

D IF F E R E N T IA T IO N O T H E R T H A N B Y M E A N S O F C O M P O S IT E O R S IT ER A T I N G PARA. NOS.

i . Differentiation by Usage . . . . 5.03

(a) Consideration o f the Usage Groups 5.O4 / 5.23

(b) Application o f Differential Rating by Usage Groups . . . . . . . 5.24 / 5.25

(i) Differential Rating in Ontario 5.26 / 5.34

(ii) Differential Rating in Charlottetown, Fredericton and Saint John, and New/ foundland . . . . . 5-35 ' 5-39

(iii) Differential Rating in Halifax O \ V-/S

(iv) Differential Rating Proposal in Australia 5.53 - 5-56

(v) Suggested Differential Rating System Proposed in Third Interim Report o f Borckenhagen Committee . 5 -5 7 ' 5-59

(vi) Durban Draft Rating Amendment Ordi/ nance, 1963 . . . . . 5.60 / 5.85

2. Differentiation by Other Means (e.g. Valuation) . 5.86/5.100

S e c t i o n V I

O T H E R F A C T O R S T O B E C O N S ID E R E D B E F O R E T H E I N T R O D U C T I O N O F D I F F E R E N T I A L R A T I N G

(a) Effect on Prices and/or Profits 6.03 / 6.08

(b) Psychological Effect . . . . . 6.09 / 6 .13

(c) Effect on Employment . . . . . 6 .14 / 6.16

S e c t i o n V II

C O N C L U S I O N ........................................................ 7.01 / 7.02

[ 206 ]

IN D E X T O A N N E X U R E S

A Comparison o f Rates Paid and Percentage Rates to Salaries in respecto f certain Individuals and Houseowners in Council Housing Schemes under Different Methods o f Rating at Present Level o f Rate Income 1962^63.

‘B ’ — Extract from “ Governing the Metropolis” by Scott Greer, Associate Professor, Political Science and Sociology— Northwestern University.

‘ C ’ — Schedule showing Comparison o f Percentages applied to Selected Businesses where the Business Assessment is a Percentage o f the Real Property Assessment (Canada).

— Schedule showing Comparison o f Supplementary Business Taxation levied by Canadian Municipalities in addition to Real Property Taxation.

‘E ’ — Schedule showing Group Change o f Incidence under Three Methods o f Capital Rating, Durban I962'63.

F Schedule showing the Average Cost Structure o f Industry in Durban and Pinetown over Selected Periods, 1924^25 to 1953^54 (Private Industries only).

‘ G ’ — Schedule showing Percentage o f Assessment Values used for Business Taxation Purpose under Assessment A ct o f Ontario.

‘EP — Extract from the Third Interim Report o f the Committee o f Enquiry into the Financial Relations between the Central Government, the Provinces and Local Authorities on the Financing o f Roadworks.

I — Durban Draft Rating Amendment Ordinance, 1963.

J Schedule showing Change o f Incidence o f Rates under Selected Sliding Scale Scheme, with Rates Payable on Equivalent Uniform Basis.

K Schedule showing Relationship o f Rates to Salary under Selected Sliding Scale Scheme and Equivalent Uniform Rate Basis (Compos site 2 :1 ) .

‘ L ‘ — Schedule showing Comparison o f Rates Paid under Uniform, Usage Differentiation and Valuation Differentiation Rate Schemes at Various Valuation Levels.

[ 207 ]

I. I N T R O D U C T I O N

“ In the very early days o f rating history in England local taxation was assessed on the individual’s total wealth and not merely on the value o f his property. It did, therefore, hear some relation to the taxpayers’ ability to pay.’ ’ 1

Dr. I. Q . Holmes.

( i ) T h e E a r l y D e v e l o p m e n t o f t h e R a t i n g S y s t e m

1.0 1 From the very inception o f taxation, land, because o f its permanence, was regarded as a suitable base for taxation (payment originally being made in kind), historical evidence indicating that this base was used as early as 4142 B .C . in Egypt and that by 1500 B .C . all land and other property was recorded in tax registers. The system o f local government rating which is at present used in South A frica is, however, based on that originally introduced in England in 1601 in terms o f the Elizabethan Poor Relief A ct o f that year. This A ct was designed to provide a means o f raising revenue for poor relief at the same time localising the responsibility for same on the local community. The basis o f the rate was a general assessment on money incomes and any goods (including fixed property) which symbolised wealth. This rate was a landmark, for it was levied on all inhabitants o f the parish and all occupiers o f land, houses and other property in order to finance poor relief, irrespective o f the benefit individual ratepayers derived.1 2

1.02 Subsequently, because a general property tax provides substantial scope for evasion and also because o f the general administrative difficulties in the application o f such a scheme, the tax base in many countries has, over a period o f time, been gradually narrowed until, in the ultimate, as in South A frica today, it is limited to a base o f immovable property only (and in some cases even this base is restricted e.g. in Durban plant and machinery to the extent that it is immovable can no longer be rated). Thus while the initial concept o f the rating system was based on the ability to pay principle, consideration must be given as to whether, having regard to the present restricted tax base, the rating system still complies with this principle.

1.03 It must also be remembered that local government is today a completely different machine from that which was charged with the responsibility for poor relief in 16 0 1. From providing the basic community needs o f roads, water supply and drainage to an economy that was based primarily on agriculture, local government today is a highly complex machine providing a wide variety o f community services to a population which has become increasingly urbanised thus accentuating local government

1 Dr. I. Q. Holmes, “Local Government Finance in South Africa” , p.60.2 “New Sources of Local Revenue” , Report of a Study Group of the Royal Institute of Public

Administration 1956.[ 208 ]

problems and furthermore providing such services to an economy which is now highly industrialised and commercialised.

1.04 The effect o f—

(a) the restricted tax base generally available to local government; and(b) the increasing cost o f local government arising from the urbanisation

o f the population together with the industrialisation o f the economyhas been to create a burden on the existing rating system which it was not originally designed to bear. Before discussing how differential rating can assist in alleviating such burden, however, it is first necessary to analyse some o f the problems associated with the present rating system.

( 2 ) P r o b l e m s f a c i n g L o c a l G o v e r n m e n t i n t h e u s e o f t h e

e x i s t i n g R a t i n g S y s t e m

1.05 The problems which beset local government today in achieving an equitable distribution o f the tax burden by means o f the rating system may conveniently be dealt with under two main headings:

(a) Applying the ability to pay principle, and with this must be con sidered:

the existing regressiveness o f the rating system; and the productivity o f the rating system; and

(b) The taxation problem arising from peri-urban development.

A . A p p ly in g the A b ility to P a y Principle

1.06 Before considering the application o f the ability to pay principle, however, it is necessary to consider whether such principle is still accepted as an equitable means for the distribution o f the local tax burden. The three alternative methods which local government can utilise are based on:—

(i) the cost o f service rendered to the individual;(ii) the benefit o f service received by the individual; and

(iii) the individual’s ability to pay.

1.07 W hile no doubt there are certain costs o f local government services which can equitably be recovered under the basis o f (i) or (ii) above (and in fact the cost o f some services are recovered on these bases) there is o f necessity, because o f the wide diversity o f services provided by local authorities today, and the fact that there is either difficulty in measuring the cost o f service to the individual or the value o f the benefit received, a need to recover a substantial sum by means o f a tax the essence o f which as stated by Professor Taussig is the absence o f a direct quid pro quo between the taxpayers and the public authority” .3

3 F. W. Taussig, “Principles of Economics II”, p.483.

Differential R ating (continued)

[ 209 ]

1.08 O n this point o f the distribution o f the rate burden, Professor Cannan has stated that two principles are involved viz.:

(i) ability to pay; and

(ii) the benefit principle.

1.09 He states:“Applied to the same rate the two principles are obviously incompatible. It is difficult to think

of any kind of government expenditure which confers benefits upon people approximately in pro/ portion to their ability to contribute. But it happens that in practice the nearest possible approximation to local rating according to ability and the nearest possible approximation to local rating according to benefit are one and the same thing, namely, the rating of persons in respect of fixed property in the district.”4

1 .10 Discussing the benefit principle, H . Carl Goldenberg has stated:“The justification of the real property tax today will be found primarily in the benefit theory of

taxation. This theory is particularly applicable in municipal finance; . . . While the imposition of taxes solely on the basis of direct benefits received by the individual would not be sound or equitable, even if it were possible, the fact remains that municipal expenditures confer special benefits on owners and occupiers of real estate.”5

1 . 1 1 Commissioner Goldenberg went even further when he stated that the provision o f educational facilities while it is a service to persons also benefits property values (local education is financed by a local school levy or rate in Canada) and therefore:

“ To the degree that the financing of education is a municipal responsibility, I am therefore of the opinion that it is reasonable to expect that real estate, whether residential, industrial or com/ mercial should contribute towards the costs.”6

1 . 1 2 It would seem from the above that Commissioner Goldenberg acknowledges that municipal expenditure benefits property and that there/ fore property should be taxed but that the actual basis should not be on direct benefits received as this would not be sound or equitable.

1 .13 This aspect o f the distribution o f the rate burden was also considered by the Transvaal Municipal Commission o f 19097 which reached the conclusion that the municipal rate was not levied according to specific benefits but according to ability to pay as evidenced by the ownership o f fixed property which view was also supported by the Durban Borough Boundaries Commission o f 19 3 1 .8 Further Judge Pottier who investigated the problem o f local taxation in Halifax, Nova Scotia in 1957 stated:

“The use of property as an index of ability to pay taxes is widely recognised.”9

1 E. Cannan, “The History of Local Rates in England”, 2nd Edition 1912 , p.159 .5 H. Carl Goldenberg, O.B.E., Q.C. Commissioner, “City of Winnipeg”, Report of the Com

mission on Municipal Taxation 1958 , p.19 .6 ibid—p.2 0 .7 T.G. No. 12/1909—Transvaal Municipal Commission.8 Report of the Commission appointed to consider and report upon the Extension of the

Boundaries of the Borough of Durban—193 0 .3 Report of the Commission to Investigate the Taxation System in the City of Halifax (Decem

ber, 1957).

Differential Rating (continued)

[ 2 1 0 ]

1 . 14 Similarly a Committee o f Inquiry appointed in Australia in 195910 11 reported:

“The rate is essentially a contribution towards the cost of local government. . . It is not generallya payment for services rendered to a particular parcel of land. It might be prejudicial to the interestsof local government and the general body of ratepayers to link the amount of rates paid in respectof each parcel of land with the services actually received or available to the occupants of that parcel.”

1 . 1 5 Generally speaking, therefore, it would seem that:(a) the taxation o f immovable property is justified for municipal pur^

poses having regard to that portion o f benefits which accrue to the owners o f such property from municipal expenditure; and

(b) the most desirable basis on which that portion o f taxation should be distributed between such taxpayers is that based on the ability to pay principle.

1 .16 I f the principle o f ability to pay is then accepted how does the rating o f fixed property comply with such principle?

1 .17 The three principal defects from which fixed property suffers as an index o f ability to pay are in relation to:

(i) Domestic Properties1 .18 (a) W ith the introduction o f the rating system in 1601 prior to

the industrial revolution, the ownership o f property was probably a broad measure o f taxpaying ability

“but with the complicated and elaborate differentiation of wealth in the modern economy this is no longer the case.”11

Thus the range o f valuation o f dwelling houses today is narrow when compared with the range o f personal income and the rating

system in its present form is no longer a completely equitable means o f the distribution o f the tax burden. Furthermore, as stated by Dr. Holmes:

“. . . ownership as a criterion of ability to pay does not necessarily take into account the needs of the local taxpayer, nor his personal responsibilities.”12

1 .19 W ith this problem, particularly in South A frica, one finds that the poorer classes tend to have large families and therefore require a large amount o f accommodation i f their families are to be adequately housed. In addition, however, amongst other classes o f persons, large families require substantial accommodation and property values are not completely equitable in cases where families o f equal income have different size families and dwellings.

1.20 Administratively, the handling o f such problems outlined above within the framework o f the rating system on a similar basis

10 Report by the Committee of Enquiry into the Valuation of Land Act 1916/1951—1959 .11 Report of the Commission on Municipal Taxation—City of Wininpeg 1958 , p.17 .12 Dr. I. Q. Holmes, “Local Government Finance—South Africa”, p.6 1 .

D ifferential R ating (continued)

[ 2 1 1 ]

to that used under income taxation would probably be costly but different countries have considered different means o f overcoming this problem, e.g.

(i) in England in terms o f the Rating and Valuation A ct 1925 provision is made for a local authority to reduce or remit the payment o f rates on account o f poverty. This system, however, has largely fallen into disuse its place being taken by the National Assistance Board, but this is only part o f the problem for:

. . there is a class of people who are just above the level of subsistence at which the National Assistance Board is allowed to help but who, at the same time, find great difficulty in paying the increased rate bill.”13

In regard to this category, however, A . R . Ilersic has said:14“However much sympathy one may have for this group, it is questionable whether

the relief should come from the other ratepayers . . . If the central government is satisfied that genuine hardship exists, then some specific provision should be made to relieve i t . . . they (local authorities) should not be expected to forgo revenue by granting rate relief for hard cases . . . More important, however, they should not be inhibited from exploiting to the full their total rateable resources in raising rate poundages for revenue purposes simply because there will be a few hard cases.”

The impact o f the 1963 Revaluation in Britain, however, raised such an outcry from the British public that the Government ultimately conceded the appointment o f a Commission o f Inquiry to investigate “ the impact o f rates on households in different income groups and in different parts o f Great Britain with special regard to any circumstances likely to give rise to hardship.”

This aspect was considered at the Conservative Party Congress at Blackpool in 1963 and the debate was taken upon the main reso lution deploring the “ unequal burdens resulting from the present rating system and urging a review o f the problem.” The Minister (John Boyd Carpenter) replying stated:

“We will also review the rating system itself in order to see whether it could be improved to insure that the money local authorities collect from ratepayers shall be raised as fairly as possible.”

and“The intention was to help individual cases of people not necessarily in poverty, but

whose way of life was perhaps at risk of being altered because of inescapable rates demands flowing from revaluation.”15

(ii) in Canada subsequent to the 1914^18 W ar, the Province o f Ontario in Canada, enacted legislation permitting the partial exemption o f single family living accommodation in respect o f the general local

13 “Some Effects of the 1963 Rating Revaluation”, G. C. Jones Esq., Borough Treasurer, Reading—English Institute Conference 1963 .

14 Hobart Paper 20—“Relief for Ratepayers”—A. R. Ilersic, Lecturer in Social Statistics, University of London.

15 Financial Times London—11th October, 1963 .


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tax. Thus living accommodation valued up to $2,000 was exempt to the extent o f 50 per cent and this exemption was graded down to 10 per cent in respect o f accommodation valued between $3,501 — $4,000. The general legislation in this matter was, however, repealed in 1955 and its continued application in Toronto under special legislation is under reconsideration. In British Colum bia more recently, however, there has been introduced the Provincial Home/ Owner Grant. From 1957 to 1959 this provided a maximum rebate o f $28 which applied to all the current year taxes o f all residential accommodation occupied by the owner including owner/occupied apartment buildings. In i960 this rebate was increased to $50 and thus an owner/occupier whose taxes were $5 1 or less a year paid $ 1 a year taxes; those with taxes over $ 5 1 paid the difference between the amount o f the tax and $50. In 1963 this grant has been increased to $70 with the expressed intent o f increasing the grant to $85 in 1964 and $ 10 0 in 1965. In the City o f Vancouver, this grant amounted to $3,548,233 or 8.56 per cent o f the tax levy for general and school purposes.

(iii) A gain in Canada the 1949 report on the reorganisation o f Provincial/ Municipal Relations irPNova Scotia suggested a system which would make rating conform more closely to the ability to pay principle when it stated:

“However, it could be made to accord more closely with this principle, and at the same time (the tax) would be made more lucrative, if all household units were given a basic exemption and the tax rate on the remainder were made mildly progressive, rather than proportional as it is at present.”

Saskatchewan’s Local Government Continuing Committee has also recently considered ways and means o f making the rate more “ pro/ gressive” in order to help the small home owner.

This approach does not have universal acceptance, however, for in a report on local taxation in another Canadian city it was con/ eluded that any attempt to put the real property tax on an ability to pay basis was doomed to failure.

(b) Owners o f property form only a portion o f the total income earning population o f a local authority area and hence many potential contri/ butors who at present only contribute indirectly i.e. through the spread o f business rates to the consumer, a method by which owners o f property also contribute, are only taxed to this limited extent. In this respect in N ew Zealand a citizen’s tax for local bodies is to be considered by a committee representing the Treasury, the Depart/ ment o f Internal Affairs and the Municipal Association.16 The Committee is expected to produce a workable plan for the taxation


16 The Accountant—7 th September, 1963—p.2 8 2 .[ 2 1 3 ]

o f citizens who are not ratepayers. The Municipal Association in its submissions to the Prime Minister stated that the population in an average municipality could be divided roughly into three equal parts — ratepayers, non/ratepayers who were wage earners and younger people in neither group. The memorandum pointed out that the provision o f amenities was shouldered by a third o f the community — the ratepayers — and the burden in many areas had reached the limit. A pproval was therefore sought by the Association for a form o f taxation which would produce additional revenue to relieve the burden o f the ratepayers.

(ii) Business PropertiesThe second defect is that insofar as business properties are concerned,

the valuation o f fixed property only (particularly where this excludes plant and machinery) is not necessarily indicative o f the respective throughputs puts o f individual businesses, their costs and resultant profits or losses, and hence their ability to pay. A s mentioned earlier since the establishment o f the property tax as a source o f revenue the economy o f most countries has changed from an agricultural to an industrial one and as stated by Dr. Holm es:

“Ownership of property tends to become progressively less Iccurate as a means of ability to pay taxes,as industry assumes a more important role in the economy in comparison with agriculture.”17

Similarly G . Findlay Shirras, Professor o f Economics, University o f Bombay in “ The Science o f Public Finance” has stated:

“In the twentieth century when industrial progress has been so great and credit so advanced, it maybe said that property is not a fair basis of taxation according to ability.”

The reasons for property not forming an adequate index in the case o f business properties is that industrial throughput can more often depend on a substantial investment o f plant and machinery than other fixed property while sales in the commercial field depend upon an adequate stock/in/trade. Neither o f these two items, however, is rated in South A frica although —

(1) in Canada it seems to be the general practice o f permitting either personal property taxation which would, insofar as businesses are concerned, include stock/in/trade and plant and machinery in the case o f Commerce and Industry respectively or alternatively permit/ ting special business taxation in lieu o f such rights;

(2) in the U .S .A . general property taxation is still common; and(3) in England certain plant and machinery is rateable in terms o f The

Plant and Machinery (Valuation for Rating) Rules 1959 and the Plant and Machinery (Rating) Order i960.

This aspect o f the rating o f personal property or alternatively the use o f special business taxation in lieu thereof is a most important feature o f local

17 Dr. I. Q. Flolmes, “Local Government Finance in South Africa”, p.6 1 .t 214 ]

D ifferential Rating (continued)

government taxation in Canada. It would appear that this special tax on Business originated in the Province o f Quebec in 1876 where the principle o f taxing personal property had been particularly distasteful from the earliest days, and that this tax has remained an accepted form o f municipal taxation in Canada ever since. These special business taxes have now spread generally to most parts o f Canada (to the C ity o f W innipeg in 1893, and the Pro/ vinces o f Ontario, Alberta and Saskatchewan between 1904 and 1906) although applied in different forms, but in most instances it has been granted only on local authorities relinquishing the personal property aspect o f local taxation. Some form o f special levy on business is actually now authorised by general legislation in all Provinces except New Brunswick and Nova Scotia and there it is permissible to value all business equipment and fixtures, merchandise and stock/in/trade. In certain urban areas substantial sums are raised by means o f such taxes amounting in some instances to as mnch as 26 per cent o f total taxation revenue.

In England, on the other hand, arising from the impact o f the 1963 revaluations and in addition the elimination o f the partial derating o f industry, opposition to the rating o f plant and machinery has been engendered. In South A frica, however, neither plant and machinery nor stock/in/trade are rateable nor is special business taxation o f the nature o f that practised in Canada yet permitted.

(Hi) Apportionment o f Rating Burden between Domestic andBusiness Properties

It is also doubtful whether the valuation o f fixed property for taxation purposes as used in South A frica is an equitable base for distribution o f the tax burden between the two groups abovementioned, viz. domestic and business. Particularly for the reasons outlined in (ii) above, i.e. the fact that stock/in/trade and plant and machinery do not form part o f rateable value and to the extent that the inclusion o f such movable items would outweigh the inclusion o f personal property in the case o f the rateable value o f the home/ owner, the distribution o f the tax burden is inequitable as between the domestic and business sectors. This aspect was considered by Judge Pottier18 who considered that there was a necessity for a review o f this age old theory o f equal tax rates on residential and commercial property. He stated:

“The issue is no longer one of equal tax rates, but rather one of necessary revenues and real ability to pay. This advantage of deduction of municipal taxes from taxable income means that in Halifax the net cost of municipal taxes on commercial and industrial property is only about one half of such taxes, whereas individual homeowners are obliged to meet the whole tax.”

He continued:Equal tax rates may be quite unequal in their effect on residential and commercial taxpayers.

If the tax rate is too high, it may mean impossible burdens for one and easy participation for the other. Fundamentally, municipal tax burdens must of necessity be projected in terms of compara** tive resources available keeping in mind the continued availability of the tax sources.”18 Commission to inquire into the system of taxation in Halifax—Judge Pottier—195 7 .


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1.21 In addition to the consideration o f the three defects o f the rating system in relation to ability to pay it is necessary to consider the associated problems of:

(iv) the regressiveness o f the rating system; and(v) its productivity in relation to local needs.

( iv) The regressiveness o f the Rating System1.22 In an analysis in “ Local Government Taxation in Durban” 19 a

schedule was produced showing the relationship o f rates paid to income in respect o f a random sample o f Council employees and owners o f houses in various o f the Council’s housing schemes. A n abbreviated schedule (Annexure ‘ A ’) is attached hereto reflecting a more limited sample and the relationship o f rates to income under the three capital systems o f rating, viz. flat, semi/site and site. This schedule reflects that the lowest incidence under flat rating was 1.98 per cent where a person resided in a flat while the highest 5.97 per cent was in respect o f a non/European in a loans to individual housing scheme property. I f the same rate income was raised by means o f a site rate the lowest incidence under flats would be .40 per cent while the highest on the loans to individuals’ property would be 3.93 per cent. Generally speaking under any o f the capital value systems and as shown in the Annexure, the position in respect o f ordinary residential dwellings is that the lower the salary the higher the rates paid as a percentage o f income. This regressiveness o f the rating system was also substantiated in England by a study conducted by Prof. J . R . and Mrs. U . K . Elicks.20

1.23 In view o f the fact that the local rate is regressive any possibility o f an increase in the rate randage where it is uniformly applied to domestic and business property must be attacked by those in the lower income groups, the pensioners and those living on fixed salaries and on whom the burden is proportionately the highest. Similarly those with large families and whose personal circumstances are ignored will add their weight to those who oppose the rate increase. The productivity o f the rating system therefore tends to be limited by this factor.

1.24 It has been said however that the regressiveness o f the rating system must not be considered in isolation but in conjunction with the whole tax structure o f a country. This analysis would o f course be extremely difficult to undertake. However an attempt was made to analyse this problem in America and in a study entitled “ T ax Payments by Income Groups” it was shown that despite the fairer distribution o f Federal taxes the regressive/ ness o f state and local taxes in the lowest income groups was not entirely eliminated.21 Insofar as England is concerned it was stated in the Presidential Address to the English Institute in 1962 that —

19 Local Government Taxation in Durban—City Treasurer—March, 1963 . The full schedule is set out in Annexure ‘G’ of that report.

20 Prof. J. R. & Mrs. U. K. Hicks, “Incidence of Local Rates in Great Britain (1945)” .21 A product of a seminar in public finance at the University of Michigan—National Tax

Journal—March, 1951 .


[ 2 1 6 ]

“Probably that canon which enshrines ability to pay as a supreme requirement is cared for by the system of grantdivaid from national taxation . . . The regressiveness of rating is appreciably diminished by the magnitude and distributive nature of grants from national taxes, but one cannot say it is eradicated.”

1.25 From the above it can be seen that in England because a substantial portion o f local revenue requirements is raised by national taxation where o f course the ability to pay principle is more capable o f implementation the degree o f regressiveness o f rating is considered to be reduced but even so not entirely eliminated. In South A frica o f course this problem o f regressiveness is not relieved to any great extent by grant or subsidies from the State. (In respect o f eight o f the larger urban areas in South A frica the percentage o f subsidies to total rate fund income varies from 4.5 per cent to 13.3 per cent whereas in England the system o f grants provides some 50 per cent o f rate fund income. However it must also be borne in mind that the nature o f local authority services in various countries is different, e.g. in England and Canada education is a function o f local authorities.)

(v ) Productivity o f the Rating System in relation to local needs1.26 The Social and Economic Planning Council in its Report No. 8 —

Local Government Functions and Finances—considered that the fixed property tax conformed inter alia to the revenue norms o f productivity and elasticity. W hile this may have been the position in 1945 it is doubtful whether the same comments would be valid today. Local government is faced with increasingly heavy expenditures arising from continued urbanisa^ tion o f the population and extremely costly road expenditure to solve urban traffic problems. This position is well illustrated in the case o f Johannesburg where with the 1963 Budget a 20 per cent increase in the rate randage was provided for thus reaching the present statutory limit o f the rate randage in Johannesburg without further sanction. Statutory limits apply in other Provinces o f the Republic and although none exist in Natal the comments o f the C ity Treasurer, Durban, in “ Local Government Taxation in Dur/ ban” are pertinent:

“. . . there is much evidence to suggest that local authorities have reached the practical limit of their rating powers as further rating burdens would emphasize the present inequities to the point of almost becoming intolerable.”

x.27 The very fact that three Provincial Administrations themselves have imposed statutory limitations and control on the limits o f the rate randages is also indicative o f the fact that it is considered that there are desirable limits under the present system o f rating to rate randages.

1.28 It was also pointed out by the President o f the English Institute in his Address to the 1962 Conference previously referred to that:

“In Scotland in 1954 the Sorn Committee, noting the narrow basis of rating and the inequalities of incidence, recommended nevertheless that ‘the existing system of levying rates on heritable property be continued.’ Thus concluded the Committee after having considered and rejected proposals for local income tax, rating of site values and a poll tax, but their recommendation rested upon ‘one fundamental understanding’ that the system was not overloaded.”

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1.29 Likewise a Study Group o f the Royal Institute o f Public A dm inis' tration22 stated:

“It is only when they (rates) are considered as the sole tax on which local authorities must exclusively rely that their disadvantages become so apparent.”

1.30 O n this point too editorial comment in the English Financial Times o f the 8th March, 1963 revaluation is pertinent:

“. . . but it makes sense (central government shouldering more of the burden) if it is argued that the rate is a bad tax, and should not therefore be used to raise too large an amount of revenue.

1 .3 1 The S .A . Institute o f Municipal Treasurers and Accountants has itself commented on this aspect o f the problem in its submission to theBorckenhagen Committee when it stated:

“Economists have stated that the rate is a regressive tax in that it is not based on ability to pay. Consequently it is not desirable that rates should be unduly increased as the disproportion of equity is correspondingly affected.”23

1.32 In view o f the paramount importance o f the productivity o f the rating system in South A frica at the present time an analysis o f the sources o f local government taxation in other countries, and hence their dependency on property taxation, is scheduled hereunder: 21


SOURCE OF LOCAL GOVERNMENT TAXATION AND PERCENTAGE OF TOTAL TAXATION COLLECTED23

Country

Property Taxation

inch General Property

IncomeTax

BusinessTax

Sales,Entertainment Poll and other

Taxes

% y/0 % %

A ustra lia ...................................... 100 — — —

B r i t a i n ...................................... 100 — — —

South A frica ................................ 100 — — —

United S t a t e s ......................... 87 1 — 12

Canada ...................................... 85 — 8 7

N etherlands................................ 83 — — 17

France ...................................... 29 — 61 10

West G erm an y .......................... 28 — 69 3

Denmark...................................... 27 73 — —

N o rw a y ...................................... 2 97-______ >

— 1

S w e d e n ...................................... 100 — —V------------ v -----------'

Sw itzerland ................................ 96 4

22 New Sources of Local Revenues (1956).23 Rating: Incidence of and Economic Limits—an I.M.T.A. Submission to the Borckenhagen

21 Local Government Finance and its importance for Local Autonomy—International Union of Local Authorities 1955 .

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1.33 From the above table it will be seen that local government in only three major countries is dependent on the rate as the sole source o f local taxation and o f these Britain subsidises local authorities to a substantial extent by means o f grants/in/aid to alleviate what would otherwise be an intolerable burden. In addition as pointed out earlier certain plant and machinery is rateable thus ensuring that industry bears a more equitable share o f the burden than it does in South Africa. O f the other nine countries, three, the United States, Canada and the Netherlands, rely primarily on property taxation (in the United States and parts o f Canada this includes general property taxation i.e. including inter alia plant and machinery and stock/imtrade) the chief remaining sources being sales taxation (U .S . and Canada), business taxation (Canada) and entertainment taxes (Nether/ lands). Tw o other major countries (France and Germany) depend sub/ stantially on business taxation while the Scandinavian countries and Switzerland rely primarily on income tax combined with property taxation which normally includes general property and which combined basis in the latter group is o f course more closely allied with the principle o f ability to pay than a fixed property tax. It would appear from the above brief resume of local taxation in other major countries that South African local taxation, as with British and Australian taxation, has not developed to the extent o f that o f other major countries where the legislatures have provided modified systems o f local taxation which eliminate some o f the disadvantages o f the present fixed property tax system and improve the productivity o f local tax resources to meet the current financial needs o f local authorities.

B. The Taxation Problem arising from Peri'Urban Development1.34 W hile the problems under (A ) above affect all local authorities,

that now to be discussed, is primarily one affecting the larger local authority which is surrounded or has on its periphery a number o f smaller units o f local government generally wholly or extensively residential in character. The residents o f these areas are usually dependent on the central area or core city for their employment and in addition derive many benefits from services provided in the central area which benefits are o f a regional character, e.g. sports stadia, museums and art galleries, orchestras. In addition the daily traffic flow generated from these areas aggravates the traffic congestion on the main highways into the city centre. This problem was also submitted to the Borckenhagen Committee by the Institute in the following terms:

“Very few of these tangible services are provided by the smaller satellite authorities. If they are provided at all, they are usually provided on a small scale commensurate with low rates. Examples are small administrative offices, voluntary fire services, community halls and limited health inspec/ tion. There is little incentive to provide more intangible services collectively because of the proximity of such services in the neighbouring authority. T have all the advantages of Durban without having to pay for them’25”26.

26 Statement by witness from Sydenham before Durban Boundaries Commission—19 3 0 .26 Peri-Urban Fringe Areas—an I.M.T.A. submission to the Borckenhagen Committee.

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D ifferential Rating (continued)

1.35 The Institute continued later:“With regard to direct property taxation, which in the Republic is by far the greatest source of

revenue in the rate fund, the inhabitants within the urban area contribute the full amount.The conclusion must therefore be reached that the inhabitants of the peri-urban fringe areas in

the Republic contribute nothing directly towards the general intangible services rendered in the urban area.”


1.36 This problem is a direct result o f the limitations on the fixed pro/ perty tax imposed by physical boundaries having no present direct relation/ ship to the area o f benefits conferred by the central area. No practical change has taken place in the form o f the fixed property tax to deal with this problem and unless efforts are made to overcome such defects many fringe problems will continue to exist and place an unfair burden on the central ratepayer. This defect in the present form o f fixed property taxation has also been submitted as a reason for the opposition to increasing property taxes byK . M. W illiamson27 who stated:

“The property tax, except for a possible limited amount of shifting, does not fall upon the nonresident beneficiaries of city expenditures. In this sense, therefore, under modern population developments, the property tax is not entirely equitable as the chief instrument for financing a core city of a metropolitan area.”

1.37 This whole problem is also discussed in a chapter entitled the “ Problem o f Equity” in “ Governing the Metropolis” by Scott Greer, Associate Professor o f Political Science and Sociology, North western U ni/ versity and is set out in Annexure ‘B ’ attached hereto.

1.38 Summarising the problems facing local government it would appear:

( 1) The Rating system when originally conceived was based on the principle o f ability to pay.

(2) Subsequently the tax base in certain countries has been restricted until now it is represented in these countries by fixed property only.

(3) Local authorities have three alternatives for the distribution o f the tax burden:

(a) the cost o f service principle;

(b) the benefit principle; and

(c) the ability to pay principle.

(4) The weight o f opinion seems to be that the tax should be distributed on the basis o f ability/to/pay.

27 The Local Fiscal Problem in Connecticut—K. M. Williamson—Professor of Economics Wesleyan University—National Tax Journal—March, 19 5 0 .

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Collection Number: A1132 Collection Name: Patrick LEWIS Papers, 1949-1987

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