LOCAL BODY FINANCES.

Auckland Star, Volume LI, Issue 293, 8 December 1920, Page 8

LOCAL BODY FINANCES.

HARBOUR BOARD DISSATISFIED. On the reading of the Prime Minister's letter yesterday at the Auckland Harbour Board giving the Government's position as to tiie sale of debentures by local bodies, the chairman (Mr. H. D. Heather) said he had been in consultation with the Mayor. It was now a question of the rate of discount. Undoubtedly it would be a disastrous thing for local bodies to enter into competition with each other in issuing debentures. The Mayor had agreed with him that they should wait until the Order-in-Couneil was passed and tlien consult again as to what should be done. He would report on that consultation further to the Board. The Prime Minister had realised the necessity of local borrowing by making no restrictions. All bodies would-be treated in the same way, and they would have to sell at such a discount as to bring in 0 per cent.

[ Mr. A. J. Entrican, 'holding that the position at present was most unsatisfactory, pointed out that their engineer's estimates were so closely made that the bonds were sold under par tb,ey would not realise as much money as the Board relied upon getting. Local bodies had a 10 per cent margin to cover such a contingency, but the Harbour Board had not. A__ all local bodies were apparently in the same position, the more powerful and wealthy of them, like the City Council and the Harbour Board, would sell their debentures at the higher figures, but the small local body would be left, perhaps entirely in the lurch. The matter was left in<th e hand 6of the chairman to consult with the Mayor and report.