Local Bodies Asked To Restrict Loans

Press, Volume CIX, Issue 32233, 27 February 1970, Page 22

Local Bodies Asked To Restrict Loans

(New Zealand Press Association) WELLINGTON, February 26. A call for continued restraint by local authorities over “less essential works” was made today by the Minister of i Finance (Mr Muldoon).

The Minister said that local authority loan requirements for the coming financial year would be 12 per cent above this year’s requirements. I Returns submitted by terriI torial authorities, as well as: I hospital boards, harbour ; boards, electric power boards, | and the like, indicated that I they were seeking loan finI ance amounting to $lO4 milI lion for the 1970-71 financial I year. I “To this, must be added a I possible further $4 million to I $5 million for smaller local I authorities not covered by the I survey,” the Minister said. I Mr Muldoon said the com-

; parable figure for 1969/70 was , $93 million, and for 1968/69 $7B million. ' With the present very high I activity in the economy, Mr ([Muldoon said, be was doubtful whether the resource; would be available to meel . such an increase. 5 “There is, therefore, a neec r for local authorities to con , tinue to exercise restrain' I over less essential works,” hi . said. :. The Minister said he wa: I confident that local authori ties should be able to raisi a sufficient finance for thei; o committed and essentia ( works, but emphasised thi e need for discretion in allocat ing priorities to new works. i-j “Excessive bidding fo - scarce resources is one of th: i most effective means of in creasing costs throughout thi economy," he said. “The Gov eminent and local authoritie must give the lead in exei cising restraints." Referring to the 1970-71 re quirements of local authori ties, the Minister said a loai timetable had been drawn u; for public issues totalling 85' million. In addition, man; local authorities were like! to raise additional amounts b; direct placements and othe "(means. r The total likely to b raised this year was hetwee j sBsm and s9om, which shout e ;be sufficient for the reasor n able needs of local author tj| ties, bearing in mind that e> perience showed that actua e(work invariably fell short o n the projected programme.