LOCAL BODY LOANS

Press, Volume C, Issue 29643, 13 October 1961, Page 14

LOCAL BODY LOANS

New Provision For Approval

(N.Z. Press Association) WELLINGTON, Oct. 12. Delegation of the power to approve certain local body loans from the Local Authorities Loans Board to the Secretary of the Treasury is the principal provision of a Local Authorities Loans Amendment Bill introduced and read a first time in the House of Representatives today. The Minister of Finance <Mr Lake) said the bill had been discussed with and had the general approval of executive officers of the major local authority associations. He said that because of the heavy demand for loan money in recent years, many loans had necessarily been raised for short terms. Many of these loans would have to be repaid on maturity by further renewal loans. "The volume of renewal loans required from now on will be considerable, and it will facilitate matters for both the Loans Baord and the local authorities if the board can delegate its power to sanction such loans to the Secretary of the Treasury,” said Mr Lake. The secretary (Mr E. L Greensmith) is chairman of the board. Other provisions in the bill obviate the need to prepare fresh special rolls for renewal loans. conversion loans and supplementary loans which constitute an extension or adjustment of earlier loans. These loans may be raised by an ordinary resolution of a local authority, instead of by special order, but public notice of 1* days must be given. Local authorities may strike a special rate as soon as a loan has been sanctioned. instead of waiting for (he promulgation of an order-in-council. Designed to streamline some out-dated and timeconsuming procedures before loan money is actually raised by local bodies, the legislation also affords further flexibility in the use of sinking funds