LEGISLATIVE COUNCIL

Dominion, Volume 28, Issue 33, 2 November 1934, Page 12

LEGISLATIVE COUNCIL

Conversion of Local Bodies’ Loans Consideration wag given in the Legislative Council to the Local Authorities Interest Reduction aud Loans Conversion Amendment Bill, as passed by the House of Representatives. ■ In moving the second reading of the Bill, the Leader of the Council, Hon. R. Masters, said that under the principal Act local bodies had taken full advantage of the opportunity to convert their loans. Of the total indebtedness of live hundred local authorities in New Zealand, amounting to £40,000.000, the sum of £32,000,000 had been converted, representing 75 per cent. Arising out of the main legislation, however, were certain anomalies and slight irregularities, and the Bill was designed to overcome these difficulties. Regarding the provisions dealing with the cancellation or modification of existing authorities tn borrow money, and the payment of principal and interest on securities, he said that the Bank of New Zealand, which held about 75 per cent, of such securities, had advised the Government that it was absolutely satisfied with the clause in the Bill. The Hon. Sir James Allen (Otago) referred .to the new principle in the Bill which proposed to give county councils the right to raise loans up to £lOOO for the benefit of defined areas without a poll of the ratepayers, and said he did not like the departure from an established safeguard. Similar objection was expressed by the Hon C. J. Carrington (Auckland) and the Hon. L. M. Isitt (Canterbury), The Bill was put through the committee stage, read a third time, and passed. . . .«