Local Bodies To Ask For Changes In Loans Board

Press, Volume XCIII, Issue 27924, 22 March 1956, Page 3

Local Bodies To Ask For Changes In Loans Board

(New Zealand Press Association)

INVERCARGILL, March 21. The Municipal Association will ask the Government to repeal legislation making it necessary for the Local Government Loans Board to consider the interests of the national economy when dealing with applications before it. It also seeks direct representation on the board. These decisions were reached unanimously today at the annual conference of the association in Invercargill. The motion was moved by Mr J. A. Harley (Nelson) after the conference had heard the president (Mr N. H. Moss) discuss the problem in his annual report.

Mr Moss said that some of the conditions imposed by the board indicated clearly that its decisions were being dominated by the outlook of Treasury officials. These conditions were frustrating. and caused considerable delays. They were entirely unnecessary if those engaged in local government were to be treated as having some degree of responsibility, ability, and judgment. “Such an attitude towards local government can be based only on the assumption that the members of a local body are inexperienced and incompetent. that the technical advisers employed by them cannot be relied upon, and that the Treasury must impose on local body funds the same control as it imposes on Government funds,’’ said Mr Moss.

It was necessary to criticise these matters because if they were allowed to continue unchallenged local government in New Zealand would eventually cease to have independence, and would be controlled by certain Government departments. “This will be a .very sad day for New’ Zealand, because in such circumstances no citizen worth his salt will waste his time serving in local government.’’ Mr Moss said. “I realise that I have used strong language in dealing with this subject, but I believe the situation requires the frankest expression of opinion.’’ Request to Minister Mr Moss said that in correspondence with the Minister of Finance (Mr J. T. Watts) he raised the question that the constitution of the loans board opened the way for the Government for the time being to make political appointments to the board, and that this should not be the case with a board so intimately associated with the activities of local government. “In his answ*er to me the Minister states that he cannot agree to sectional interests being represented on the board, but he must have overlooked the fact that political appointments are appointments of a sectional interest,” added Mr Moss.

Nothing he had said in criticism of the board as an institution should be taken as criticism of its existing members. he said. “We are concerned here with a matter of principle, that a board now having such complete powers over our activities should not be constituted on the same lines as every other board which has been created by Parliament and concerned with local body activities. “The Local Government Commission. Board of Health, National Roads Board, and Soil Conservation Council are examples where appointments provide for nomination bv local body interests. Why this special and exclusive constitution for the Local Government Loans Board?” asked Mr Moss. Discussing Mr Harley's motion. Mr G*. Manning (Christchurch) said he agreed with the criticism of the action

of the Minister of Finance on the pow’ers given to the Loans Board. "The board has now been given far wider powers, by inference, than was ever intended when it was first established.” he added. “If a few men are given power on the Loans Board they w ill have a terrific hold on the canital finance of every local body in New Zealand. “If we agree to the power given to this small body of men I can see they will get some sense of dictatorship and tyranny because they are not elected representatives, but are appointed by the Minister. “Membership of the board should be increased and drawn from representatives of all types of local bodies in New Zealand.” Mr Manning said.