LOCAL BODIES' LOANS.
GROUPING LARGE TRAN SACT I 0
(Ey Telegraph—Parliamentary Bepiner.)
"ELLINGTOK. Tuesday. When the Local Bodies Loans Km' introduced in the House this if,*™ the Minister of Finance the measure was mainly eousolidatinl An important new provision dealt with ihe power at present existing to borr™ tor lending to local bodies a sum not „ eroding i.60,000 per annum. Thus, little or no provision was left for the lar Ser local bodies which were able to borrow from the State. The Government "could not undertake this responslbilitv" an a proposed to get rid of it by offerihVWl bodies the backing of a Government cu» r . antee when they went upon the market. Ihe total loans m this way would k» limited to £500,000 per annum. He mad. inquiries in London as to what would be the effect of the system, and found that large local bodies might benefit by the guarantee to the extent of a quarter to half per cent reduction. A groupie oi small loans was provided for. and the effect of the guarantee in this event would range trom half to one per cent reduction of interest.
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Bibliographic details
Auckland Star, Volume XLIV, Issue 180, 30 July 1913, Page 8
Word Count
191
LOCAL BODIES' LOANS.
Auckland Star, Volume XLIV, Issue 180, 30 July 1913, Page 8
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