LOCAL BODIES' LOANS.

Auckland Star, Volume LVI, Issue 242, 13 October 1925, Page 10

LOCAL BODIES' LOANS.

PROPOSED INQUIRY BOARD.

The pronouncement recently made by the Prime Minister relative to the constitution of a board to which all applications for loans by local bodies would be referred, to determine whether the proposals for which the power to raise money was being asked, are in the best interests of the requisitioning locality, or of the county, was the subject of a letter received by the New Lynn Town Board last evening from the Christchureh City Council. The council viewed with apprehension any suggestion by the Government to interfere with or restrict the rights of the ratepayers of any local body in raising money for local purposes, the opinion being held that local requirements are best known to local bodies, and the final pronouncement in the matter should be made by the persons responsible for the charges upon moneys borrowed or the repayment of such moneys. The council favoured the establishment of a board for the purpose of funding local bodies' loan requirements with a view to the stabilisation and equalisation of interest rates and charges upon loans. The New Lynn Board was asked to support these views. The chairman (Mr. C. F. Gardner) agreed with the Prime Minister that an expert body should examine all loan proposals. The board decided not to support the Christchurch Council.

The matter was also discussed by the Onehunga Borough Council. The Mayor did not see why the Government should interfere with local bodies' loans, as the rate of interest proposed to be paid has t6 be sanctioned now by the Minister before the money can be raised. He thought the idea of establishing a board for the funding of local bodies' loans was a good one, as the Government would be able to borrow money at a much lower rate of interest than individual local bodies could. The council agreed with the Mayor, and it was decided to reply to the Christchurch City Council accordingly. When received by the Mount Eden Council laet evening, the request was referred to the coming Municipal Conference, which is to be held at Dunedin during February of next year. Another matter referred to the conference was a request from the Christchurch Council for co-operation in a protest against the constant filching of the power of local bodies by Government regulations.