LOCAL BODIES' LOANS.

Evening Post, Volume CIV, Issue 10, 12 July 1922, Page 5

LOCAL BODIES' LOANS.

Two questions of interest to local bodies were asked in the House of Representatives yesterday. The first, put by Mr., Veitch on behalf of Mr. S. G. Smith (Taranaki), was whether the Government would introduce legislation as a matter of urgency to amend the Local Bodies' Finance Act to enable local bodies to raise funds to meet unemployment without taking a poll of the ratepayers. The Minister of Internal Affairs (the Hon. W. Downie Stewart) said that the provision in the Act which enabled local bodies to borrow without the consent of the ratepayers applied to sudden emergency such as flood or earthquake. It was a serious matter to extend that power, and his present impression was that it would be unwise to make the section apply to funds raised for*meeting unemployment. There was, however, to be an amendment of the Act this session, and when he introduced it he would consider this proposal. ''- Mr. Veitch (Wanganui) further asked' if, when local bodies are raising funds to meet their antecedent liabilities, they would be allowed to borrow at the same time the cost of the loan instead of having to meet it out of their general funds. He stated that this would enable local bodies to spend more money on the relief of unemployment. In Wanganui the unemployment problem was serious, but the local body was unable to do as much as it -wished as it had to conserve its funds to meet the cost of the loan. The Minister of Internal Affaira said that there was no special hardship in having to meet the cost of the loan out •of general revenue, as this was the rule with regard to loans for other purposes. | The point had been submitted by other local bodies, but he had pointed out that they were under no immediate obligation |to raise the loan. They could pay oft the debt, by instalments. He was pleased to say that the majority of the local bodies -were dealing with, their antecedent liability satisfactorily. He would, however, look into the point raised.