LOCAL BODY LOANS

Press, Volume LVIII, Issue 17522, 2 August 1922, Page 12

LOCAL BODY LOANS

BILL PASSED BY HOUSE. GOVERNMENT'S AMENDMENTS. (russs association telegram.) » WELLINGTON, August 1. In the House of Representatives tonight tho Local Bodies Loans Act Amendment Bill was taken in Committee.

Dr. Newman askod tho Minister if ho would insert a clause permitting j-mall local bodies to raise Joans to j>rovido work for unemployed without roterenoe3 to the ratepayers. Mr Veitch siiid unless local bodies wero empowered to hdd tho cost of flotation to antecedent liability loans, they could hot possibly assist in meeting tho problem of tho unemployed, because tno notation charges made such a drain ugon their finance that thero was nothing left to spend upon publio W Sir John Luke strongly supported tho views expressed by Mr Vcitch. He also declared that the refusal to permit local bodies to accent deposits was detrimental to local hnance, and bodi©3 often had to pay the banka 7 per cent, for what the public was willing to give thorn for 4 and 5 per cent. ilio Hon. W. lwwnie Stewart said the point raised by Dr. Newman was being dealt with by an amendment he was bringing down. Power to raise such loans would be limited to ono year. They would have to be raised by special order, and the Minister of Finance must givo his consent. That, no thought, would amply secure the interests of tho r.itopayers. Ho also proposed. to permit local bodies to add the cost of flotation to antecedent liability loans when a loan is raised outside of New Zealand. - These new clauses wire agreed to on the voices. The Bill as amoftded was reported from Committee, read a third time and passed. (special io THE PRESS.") "WELLINGTON, August, 1. An important new clause for incluwon in the Local Bodies' Loans Act Amendment Bill, wis introduced by the Minister of Internal Affairs tonight, and embodied when tho Bill was in the Committee stage. The clause gives local authorities tn® power to borrow nioney by* special order ahd without taking a poll of the ratepayers for the purpose of providing relief works for the unemployed. _ It is provided th&t the Governor-General may withhold Wb consent to the borrowing of any moneys unlfess he is satisfied that, in undertaking the works for which such moneys are proposed to be borrowed, the object of the local authority is primarily to provide empayment for men who .would otherwise be without employment, or without sufficient employment enable them to maintain themselves and they families in a reasonable condition of comAny moneys authorised lo be borrowed by a local authority may be borrowed by that local authority from the State Advances Office,, notwithstanding that the works for which such moneys are so borrowed -may not be public works of any of the classes enumerated in seotion 60 of the principal Act. The Superintendent of the State Advances Office is empowered to make advances to local authorities for the purposes of any works to be undertaken under, this section out of moneys for the iime being available for the Tiurrnses of the local authorities branch of, that offcee. No nioneya shall be borrowed after December 31st, 1923.