LOCAL BODY FINANCE

Evening Post, Volume CIV, Issue 25, 29 July 1922, Page 8

LOCAL BODY FINANCE

ACT WORKING SATISFACTORILY WELLINGTON'S POSITION. Local body finance and local body government generally were . discussed at length in the House of Representatives last night, when the Local Bodies Loans Amendment Bill came up for the' second reading. ' Sir John Luke (Wellington North) trusted that th© Government would see its way at an early, date to remodel the local government legislation. 'He looked forward to the introduction of a comprehensive consolidating measure. . Many other members pleaded for an enlargement of the provisions of the Bill, especially in the direction of assisting small local bodies, who found some difficulty in raising money to meet their antecedent liability. ' They urged a postponement of the operation of the provisions of the principal Act. Mr.. R. A. Wright. (Wellington Suburbs) referred to the difficulty facing Wellington in the matter of raising a loan to pay off the city's antecedent liabilities. The law did not permit the inclusion in the loan of flotation expenses. It would cost Wellington at least £17,000 to raise £350,000, but where was £17,000 to come from. "You can march us all off to gaol," he said, "but we can't find £17,000. The Act is useless,' inoperative. I have discussed the position with 'the Minister of Internal Affairs, but there seems to be a departmental objection, in that flotation charges are not allowed when loans are renewed. Was a departmental official to override the Minister in a matter of policy?"

The Prime Minister promised that during the session the House would be given an opportunity to meet the difficulty and satisfy the request made by Mr. Wright. The Minister of Internal' Affairs (the Hon. W. Downie Stewart), in reply, pleaded with members not to urge a postponement of the Act. The Act was a very good one, and was working well, and he did not want to see it whittled away by postponements. Regarding the point raised.by Mr. Wright, he did not think that Mr. Wright had been altogether fair to him. The departmental officers were certainly not in favour of giving effect to the request made, but he (the Minister) had promised to have the point, which was one of policy, referred to Cabinet. Besides Wellington only one other local body—a small body at that—was affected. The point was a very difficult one, but it could not be overlooked that several local bodies had starved their finances in order to comply with the Act. The Minister stated that, according to tlio returns furnished under the Act, the total antecedent liability of local bodies was £2,316,397. The returns were not quite complete. Of tho total he had mentioned direct loans had been arranged for £1,470,981. The sum of £378,421 would be paid off in annual instalments, special rates having been levied, while £143,181 would be. paid off in annual instalments direct from revenue. In a majority of cases local bodies had experienced no difficulty in raising the money required. . . ■ . ' The amending Bill waS read a second time. .