LOCAL LOANS.

Auckland Star, Volume LXX, Issue 67, 21 March 1939, Page 6

LOCAL LOANS.

Local authorities which by the nature of their dealings with tie public axe compelled to raise loans for expansionist policies, as well as those wihich desire to extend their ordinary services, suie left high and d*y by the Government. They are not permitted ito pay more than 3£ per cent interest, but no money is available at that figure for the sale of debentures «r for .direct loans, and the State will not come to their aid. While iGovernment stock can be at rates which return £4 5/ to £4 7/ per «ent it is manifestly impossible for local authorities to get new money at .34 per cent, and the State Advances Corporation, the only source available apart from public subscription, sits tag&it und does not even, offer a suggestion either as to when it will make money available or how the borrowing authorities should proceed. Nor can those interested obtain any information from the Minister of Finance, beyond the meaningless reply that the question of providing funds will receive consideration at a later date. "When material is needed for the expansion of services such as those provided by the power boards, inability to raise the necessary funds involves a suspension of development policies and a consequent .check on employment There is nothing to be said •in favour of a policy which keeps those concerned in complete darkness, and Mr. jSlash should, in common fairness, make an explicit statement of his policy.