MAYOR ACCEPTS ASSURANCE.

Auckland Star, Volume LXIV, Issue 178, 31 July 1933, Page 3

MAYOR ACCEPTS ASSURANCE.

Commenting on Mr. Coates' statement, the Mayor, Mr. G. W. Hutchison, said he unhesitatingly accepted Mr. Coates' assurance that he had not instructed the Loans Board in reference to the, application. "My supposition was formed on the Tress Association message from Wellington of July 3, as follows: —'In connection with the recent decision of the Government to reopen over-counter sales of Government securities at 3:1 pelcent interest, the Minister of Finance, the I\t. Hon. J. G. Coates, to-day referred to the position in regard to current issues of local body securities. Mr. Coates stated that the Local Government Loans Board was closely cooperating with the Government in the matter of interest rates, and he had been advised that the board at its meeting on June 27 decided that rates of interest on local body loans sanctioned at that meeting and to be dealt with in future should be restricted to a maximum rate of 4 per cent for best local authorities.'" The Mayor said it had been pointed out that the major works, while essentia], could be postponed for a year or two, but the council had decided to proceed with them forthwith in order to relieve the unemployment situation and to meet the widespread demand that relief labour should be employed on constructive work, the. general opinion held being that much of the unemployment taxation was wasted by employing relief workers on work that could 'not be regarded as creating permanent assets. Development Disrupted. Furthermore, the normal course of city development had been entirely disrupted by the burden of exchange imposed upon it, which for the current year was estimated to amount to no less a sum than £30,600. It had been pointed out to the board that a number of the works covered by the application would, but for this, have been undertaken out of revenue.

"As the matter is now settled, I can only liofs; that when the proposals are submitted to a poll of the ratepayers they will be endorsed," he added. "Prior to the poll being taken complete information will be. furnished so that the ratepayers will be apprised of the nature of the works and the effect from a lating viewpoint of the raising of the money."