LOCAL BODIES HELPED.

Auckland Star, Volume LXV, Issue 106, 7 May 1934, Page 6

LOCAL BODIES HELPED.

As a measure of the benefit that has come to local bodies through the reduction in interest rates on their internal loans, it is stated officially that the annual saving of interest amounts to nearly £450,000. This no doubt has been a great help to many authorities in a difficult year, but unfortunately there nre other bodies which have not been relieved. While the weight of internal debts is lighter, that of external debts is heavier. Not only does the interest paid to overseas creditors stand at its former level, but there is the additional cost of the high exchange. Instead of being relieved, therefore, the municipalities and boards which borrowed in Britain have to find an extra £220,000 a year. By deducting this sum from the amount saved on the internal debt, the net benefit to ratepayers in the Dominion is reduced to about £230,000. In the conditions of to-day it is the larger bodies, and those with the best credit, which are paying the highest price for borrowed capital, while the smaller bodies have enjoyed most of.the benefit arising meafejactioih,,"~. ■'■'' • •-•■' '■* "Tj&