DRAINAGE BOARD FINANCE.
TO THE EDITOR OF THE PR——. Sik,—l have read over your leader of the 13th inst. with considerable interest, although not quite agreeing with your sentiments. I think it is well to now con- "~ aider how best to deal with this matter of the sinking fund, unprovided for the post, five years. In order to show what should have been done by the past Boards, and what is required by the present Board, I will briefly note tbe Act, 1875, section 78. It states—The moneys borrowed, witinterest, shall be a first charge upon the , rates, and it shall be the duty of the Board, and they are hereby N required annually to levy a rate sum[• cient to pay the interest aud to provide a (sinking fund for the repayment of the loan. Section 84 stales that if the Board neglect to levy such rate as required by this Act, every member of the J ~. Board so neglecting shall be liable to a penalty not exceeding _50.' There can be uo misconstruction of the reading of the ." above. If the funds of the Board were not .sufiicierit to pay all their debts the or—-, nary creditors would have secondary claims, lion. Mr Reynolds, in speaking „ of the Ameudmeut Bill just thrown out of the Upper Bouse said, "It was a moat dangerous thing for the Legislature to allord means of escape from the fulfilment of obligations Itt cases where local bodies did wrong. , They might as well not pass laws at all — - they were to allow these bodies to act IcoutraveiiUon of the law." I quite concur in his statement. 1 believe the present Board intend to comply with the Act aud provide the sinking fund for the present year, but it is patemt they cannot at tha ~ present time provide out "of rates forth* ~ past deficit. I would suggest that as soon as this boom comes along and the rat—>. . increase, the amount of increase should he v held to pay up the past deficiency. If the "■ present Board show a desire to pay the current sinking ftiud, 1 do not think any -- bondholder will go out of his way tow* the mandamus so ' much talked ot—■ Yours, Sec, Ratepatbb. '-
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Press, Volume XLV, Issue 7122, 19 July 1888, Page 6
Word Count
374
DRAINAGE BOARD FINANCE.
Press, Volume XLV, Issue 7122, 19 July 1888, Page 6
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