LOCAL BODY FINANCE

Press, Volume XCI, Issue 27670, 28 May 1955, Page 8

LOCAL BODY FINANCE

GOVERNMENT LOAN PROPOSAL CRITICISM BY POWER BOARD CHAIRMAN (New Zealand Press Association) GISBORNE, May 27. Measures proposed by the Government to meet the immediate needs of local bodies for capital works were strongly criticised today by the chairman of the Poverty Bay Power Board (Mr F. R. Ball), who is also president of the New Zealand Electric Power Supply Authorities’ Association. He described the allocation of £1,000,000 through the State Advances Corporation as “only a stop-gap” much below the expectations prompted by earlier intimations to the national executive of the association. “Early in April the executive was given to understand that considerable sums of money would be made available for small loans to local bodies but that the larger loans would have to be raised by public issue. “Since then the proposals for an allembracing local body corporation which were put forward some time ago have been given prominence. These proposals are still in a nebulous state, and so far have received little support,” said Mr Ball. “Their resurrection at this particular time has had an adverse effect on the loan market. “The corporation would require specialist, and experienced control, and it is doubtful if local bodies would ever be willing to sink their individualities and control of their finances in a Dominion organisation.”