POSITION OF LOCAL BODIES.

Press, Volume LVI, Issue 16946, 22 September 1920, Page 7

POSITION OF LOCAL BODIES.

STATEMENT BY PRIME MINISTER (SPECIAL TO "THE TBISS.") WELLINGTON, September 21. Mr Luke tliis afternoon said he had a lengthy question to ask about how insurance companies would be affected by t.he Land and Income Tax Amendment Bill, and in regard to the question of investments generally, but it was so long that perhaps it would be bettor for him to lmnd it.to the Prime Minis- • ter. Mr Massey .said he was certainly not ! goin" to make a second reading speech at that juncture. There had been a j great deal of discussion in connexion with the Bill, and some alterations had | been made in it by the committee to j which it had been referred. He proI posed to tak<? the second reading of the ! Bill this week, and he would not take the committee stago for another week, i so that the people concorned would have an opportunity of ventilating their grievances. The proposals in the Bill would, therefore, be thoroughly disj eusscd and the subject matter properly ventilated on the second reading, and then the people would have a better I idea of what tho Bill contained. ! Mr MeCombs referred to the proposed i tax on debentures, which he said might prejudicially affect local bodies. A , large number of local bodios were on thy i market at the present timo attemnting to raise money, and the proposed flat rate of 3s in the £ was preventing them from getting the money they urgontly required. Perhaps the Prime Minister could make some announcement that would *>ase the situation. • Mr Massay replied that, when the local bodies had seen the Bill, he did not I think they have any reason to ' complain—at all events, very little cause. The present debenture tax was 2s Cd flat rate,'and they were increasing it to 3s. This increase would not affect the financial position of any local bodies in this country. So far as borrowing ; was concerned, ho expressed the opinion ! that it might not bo a bad thing if the local bodies were checked for a little ! time. There were many millions of I money being asked for by local bodies, I and he was quite certain that if they got it all, they could not possibly spend ! it to advantage at the present time. (Hear, hear.)