debts of local BODIES.

Press, Volume LXVI, Issue 19971, 4 July 1930, Page 12

debts of local BODIES.

TOTAL OF £68,000,000. HUGE GROWTH SINCE 1919. Concern is felt by members of the business community of the Dominion at the rapid increase in the debts of local bodies, and last evening the Canterbury Chamber of Commerce favoured bringing the matter to the attention of the Associated Chambers. The Auckland Chamber brought to notice the contents of a report on the growing indebtedness of local authorities. The letter stated that the Chamber proposed ventilating the matter in the form of a remit before the conference of the Associated Chambers at the Hermitage in October. The report stated that the gross indebtedness of local governing bodies in New Zealand had nearly trebled during the past decade, having been £28,000,000 at March 31st, 1919, and being now £68,000,000. Per capita the figures had risen from 26s to 595. Taxation by local authorities had risen from £3,100,000 to £6,100,000 annually, or from 54s to 85s per head of population. Accrued sinking funds on account of local bodies' debentures and stock on March 31st, 1928, were £7,000,000; the gross indebtedness being £59,000,000. On State Advances loans £1,000,000 of £6,333,00t> originally borrowed had been repaid in regular instalments. Belatively little of the expenditure had been on definitely productive works, and some of the productive works were not folly productive, notably some of the harbour woras. The non-productive character of this loan expenditure was indicated by the great increase in per capita taxation quoted. The assets of the ioeal authorities were estimated by them to be of aggregate value approximately equal to the gross debt. In fact, however, the assets included such items as reserves, parks and gardens, which were not really productive in a direct manner at aIL The resolution passed by the Council of the Canterbury Chamber at the May meeting was as follows: "That this Chamber considers that the policy of the State and local bodies, concerning the rate of Increase of public debt, require* earetul revision, with a view to introducing economy to assist in stimulating prosperity within the Dominion." A copy of this had been sent to the Auckland Chamber. Mr A. C. Bretherton moved that the letter and report be referred to the Economics Committee, with the desire that It place itself in touch with the Auckland Chamber with a view to the preparation of the remit for the forth, coming conference of the Associated Chambers. He said the report was a valuable contribution to the subject. Mr W. H. Nicholson seconded the motion, which was carried.