LOCAL BODY FINANCE.

Press, Volume LVII, Issue 17316, 30 November 1921, Page 9

LOCAL BODY FINANCE.

PRESENT DIFFICULTIES. DISCUSSION AT CITY QOmtCTL: Several phases of the financial difficulties experienced by local bodies were discussed by the City Council on Momday night. Or. F. R." Cooke enquired' whether the loan money raised for the new offices could until required be set off against the Council's overdraft. The Mayor said there was no authority for doing that at present. The chairman of tae Finance Committee had tried his best to secure a set-off, but the raw would jnbt allow it. / Cr. J., A., Flesher said the position -was most unsatisfactory. .If the . city and country were to be. tied up by banking regulations, it : was high time the Government interfered, or at least allowed municipalities to start banks of their own. ' The Mayor: Put a better Government in. Cr. Armstrong: A 'Bolshevik. Cr. Flesher said the Council had received £40,000 of the municipal offices loan, and were paying 6} per cent.) the interest amounting to £2600 a. year, or £6O per week, and yet the Council could not even put that money in temporary deposit pending the time it was required, for the banks were not prepared to acqept the conditions laid down bv the Government. The Government should pass legislation' this session allowing local bodies in such, circumstances to utilise - the waiting loan money. The Council'had recently paid £65,000 for maturing loans and other advances out of the general account, and were not allowed to put that nioney on deposit.with tie general account simply because there was some quarrel betweens the banks and the Government. Surely the Parliament, as the supreme' authority of the land, ought to be able to handle a matter of that kind. If Parliament would only devote its attention to such matters instead of to things they did, it would be.better, for the country. Cr. Sullivan: The Local >Bodies Finance Bill was well discussed. | Cr. Flesher: If that Bill becomes law, we could not take money on deposit at aIL r We would have to pay the,banks 7 per cent, for advances. -' : Cr. Sullivan: We told them that. CiyFlesher: I hope it will,have some effect. • Instead of helping the > local bodies at a difficult period, the framers of the Bill seem to have laid themselves out to make things as difficult as they could for local bodies. I Cr. H. Hunter said the banks were, pursuing a policy of legalised robbery.