Government Loans to Local Bodies.

Evening Post, Volume XXXII, Issue 128, 14 October 1886, Page 2

Government Loans to Local Bodies.

The Colonial Treasuror has to-day issued the following circular to local bodies : — Wellington, 14th October, 18SC. Sir— l havo the honour to forward to yon, for the information of your , a prtcis of "The Local Bodies' Loans Act, 1886," and of " Tho Government Loans to Local Bodies Act, 1886," which, it is believed, will bo found useful by local bodies desirous of taking advantage of the provisions of those Acts. The Local Bodies' Loan Act provides machinery by which a local body may obtain authority to borrow money for public works of any nature and any undertaking or purpose which tho local body is authorised to erect, construct, or engage in or proi He for by means of borrowed money. The Act may be' adopted by the local body in part or in whole. AVhere the local body does not adopt the Act, tho statutory provisions sot out at foot of this letter rc j main in force, and regulate tho mode of raising loans. Where tho local body does adopt tho Act, the mode of exercising the ¦power must be that providod by the Local Bodies Loans Act, 1886. Tho Government Loans to Local Bodies Act empowers the Government, when power to borrow has been properly obtained, to lend the money to tho local body on terms of a favourable nature. Applications for loans will be received on the Ist December next, and notice thereof appears in the Gazotte of this date. As this is tho first occasion of calling for applications, and as thero is reason to suppose the loans aotually authorised by the ratepayers aro not largo in amount, I havo determined also to receive applications from local bodies which havo proceeded no further than to resolve to rocommend borrowing to the ratepayers, and to consider these applications together with thoso for loans actually authorised by the ratepayers. It is obvious, however, that this _ coarse must not be taken as a precedent ; since, if the amount of loans authorised by the ratepayers wore large, it would not bo right to dofer such loans by placing on an equal footing applications which tho ratepayers might not approve Although on this ocoasion I propose oonsidoring and approving applications as just stated, it must bo dearly understood that the loons cannot be made nor any money paid until the statutory formalities aro complied with. I have, &c, Julius Voqel, Colonial Treasurer. The various statutory provisions alludod to aro attached, and also a precis of " The Local Bodies' Loans Act, 1886" and "The Government Loans to Local Bodies Act, 1886."