BORROWING POWERS.

New Zealand Herald, Volume LXVI, Issue 20249, 8 May 1929, Page 10

BORROWING POWERS.

Attention has been directed to the fact that the transport loan proposals require endorsement by threefifths of the valid votes polled. Had that stipulation applied on previous occasions when, under the City Council's administration, a bare majority was sufficient, it would not have been of serious consequence. Ten years ago, the loan for the purchase of the tramways undertaking was sanctioned by four votes to one ; in 1923, a small loan for extensions was carried by seven votes to two, and in 1924 a larger programme was authorised by six votes to two. Now the Transport Board's activities have been placed under a handicap, in comparison with the City Council, in that instead of a bare majority, it must obtain a three to two vote for borrowing proposals. This anomalous position must be attributed to oversight in the hasty drafting of last year's legislation. Its borrowing powers were defined by reference to the Local Bodies' Loans Act, apparently without appreciation of the fact that by that measure all local authorities are subject to the three-fifths majority rule except boroughs and town districts, both of which may raise loans upon approval by a majority of the voters. There is no logical reason for placing exceptional obstacles in the way of transport development in Auckland. All the other tramways in New Zealand, except one, are owned by municipalities, and obtain capital upon bare majority polls. The exception is the Christchurch system, which has been for many years operated by a special board having jurisdiction over a large district, its position being exactly comparable with that of the Auckland board. The Christchurch board derives its powers from special legislation and this includes an explicit provision that a borrowing proposal shall be carried by a bare 'majority of votes. The exceptional position of the Auckland Transport Board in this respect is manifestly due not to design but to oversight, and, whatever the result of to-day's poll, steps should be taken to secure a remedial addition to the special Act.