Tighter Local Body Loan Market

Press, Volume CIV, Issue 30814, 28 July 1965, Page 3

Tighter Local Body Loan Market

(Parliamentary Reporter) WELLINGTON, July 27. A tightening of finance on the local authority loan market is referred to by the Local Authorities Loans Board in its annual report to Parliament.

The board says the tightening appears to be another sign that the high liquidity evident in 1963 and 1964 is being contained. “Although most local authorities have, by and large, had no difficulty in raising their loan requirements in recent years, some £37 million in loan authorisation is still not raised.

“While this probably represents the portion of a number of loan authorisations not yet required because the work is being carried out over a period, it is in effect a contingent liability on the loan market.

“Should the signs of tightening become more pronounced it is these and other new works that will suffer.

“The financing of redemption loans, which in the last two years have assumed significant proportions, is an obligation which can neither be avoided nor postponed and must take precedence over

the financing of loans for new works. “The board again emphasises the necessity for local bodies to exercise the utmost discretion in deciding the nature and amount of work to be financed by loans,” says the report. In the last fiscal year the board received applications for the sanction of loans amounting to nearly £45.2 million. It referred back, deferred or declined applications amounting to about £5.5 million. Traffic Rises New Zealand domestic air passenger traffic increased by 12 per cent last year, accord ing to the annual report of the Department of Civil Aviation. More than one million passengers will probably be carried on internal scheduled flights next year. In view of the phasing out of DC3 aircraft by about 1970. the department feels airline operators may have problems in acquiring economical planes to operate North Auckland services and to meet demands at Whakatane.

Staff Short Shortages of staff may force the Department of Civil Aviation to restrict new air services and curtail some existing ones.

The director of operations and technical services, Mr L F. P. Taylor, says it is im perative these staff shortages should not be allowed to reflect any lowering of safety standards.

“Some steps may have to be taken to restrict new services and even to curtain existing services.” The Secretary of Civil Aviation, Mr B. R. Rae, says a lack of staff in certain quarters severely hampers the department’s work. The department should have a staff of 1610 but has only 1390

He says the shortage of ground services staff gives the most serious concern and that the shortage of air traffic controllers is critical. Plane Faults

The majority of the 186 mechanical and structural defects in planes which were reported to the Civil Aviation Department last year were caused by faulty maintenance.

Other faults were from basic design or local operation.

The number of accidents involving non-scheduled and charter flights are far too high, says the Chief Inspector of Accidents (Wing Commander O. J. O'Brien). In three of the eight accidents which occurred during such flights in the last financial year a contributing factor was adverse weather.

“This indicates that an unjustifiable element of risk was being introduced. “The responsibilities of non-scheduled and charter operators to the fare paying public are no less than those of scheduled operators.’’ Society Funds The 750 friendly societies in New Zealand and their branches had funds of £11,879,364 at December 31, of which sick and funeral funds accounted for £9,203.775 and medical and management funds £2,675.589. These figures are given in the annual report of the Registrar of Friendly Societies (Mr V. Thompson). Assets include investments at interest of £10,091,770. The membership at the end of last year was 65,472. School Building “Limitations of both finance and manpower make it difficult to accelerate the building programme very much while the pressure for new classrooms remains as heavy as it is at present.” sa-'s the Director of Education (Mr A. E. Campbell) in the annual report erf the Education Department. The transition to three-year training for primary school teachers will require major expansion at all teachers colleges, he adds. “If the target dates are to

be met, teachers’ college building projects must be treated by all concerned as a matter of urgency.” The shortage of teachers in primary schools remained about the same, dropping from 5.7 to 5.6 per cent. The number of unfilled positions in post-primary schools fell from 96 to 86 but there were 484 relief teachers in service. Exam. Problems Mr Campbell says that although the school certificate examination continues to serve some of its purposes satisfactorily it is clearly not well suited to the needs of the less able and the most able pupils. Proposals chiefly debated in regard to the shaping of a new policy for the examination, he says, have been for advanced papers and for separate subject passes that would replace the aggregate pass in four subjects as at present. Fertiliser

The quantity of fertiliser sown by air increased last year by 40 per cent. More than 912,000 tons were sown during the year. This means that the quantity sown by air has almost doubled in the last five years. The industry has generally been able to maintain its charges to the farming community about the same level.