LOANS OF LOCAL BODIES

Press, Volume LXXII, Issue 21908, 8 October 1936, Page 12

LOANS OF LOCAL BODIES

MODIFIED PROCEDURE PROPOSED

PROVISIONS IN FINANCE BILL

[From Our Parliamentary Reporter.!

WELLINGTON, October ?.

Modifications of the machinery governing the borrowing of local authorities are provided for in the Finance Bill No. 2, which, was introduced in the House of Representatives to-day. Power is given for local bodies •to borrow witnout polls of ratepayers for public works subsidised from the Employment Promotion Fund. A special order will be necessary either under the terms of any existing act or by a resolution passed fay a local authority ,at a special meeting. At any time after the date of the special meeting and before the confirmation of the resolution, a requisition may be made by at least 5 per cent, of the ratepayers on the roll demanding a poll to be taken on the proposal to raise a loan. Another clause in the bill authorises electric power boards to raise additional leans for reticulation without polls of ratepayers. Provision is conlined to boards which have raised loans and levied special rates as security. Here also 5 per cent, of the ratepayers concerned may demand that a poll be taken. The payment of interest by local authorities on renewal loans is also dealt with in the bill. It is declared Lawful for a local authority to pay interest on moneys borrowed for paying off an existing loan in respect of the period intervening between fresh borrowing and repayment. This authority is to have retrospective application.