LOANS AND SANCTIONS

Evening Post, Volume CVI, Issue 28, 2 August 1923, Page 7

LOANS AND SANCTIONS

CLAUSE IN EMPOWERING Bui OBJECTED TO.

Speaking t 0 a " Post " representative on the clause in the Wellington City Empowering and Rates Consolidation Local Bill, which gives the council power to raise ;i loan for new tramway works without taking a vote of th e people, Councillor Mitchell stated: "I am quito opposed to this clause. It is a wise and SDund principle that where, it is necessary to raise a loan to construct new works such must first be sanctioned by the majority of the ratepayers, and to remove such a, principle is, in my o pinion, a wrong and undemocratic step. "There is recent evidence that the decision of the large majority cf the people is sometimes opposed to the majority of the council where proposals to raise money are concerned. Such is sure to occur again in th a future, and if this clause passes, the council will Be able tp borrow money and carry out the work in spite of the opposition of the majority of the ratepayers. " I understand the object of the clause jr to give the council power to carry out works in an outlying district which,- on account of its purely local interest, would never be carried by the general vote of tho ratepayers. I do not believe the ratepayers- are so lacking in justice that they would turn down a desirable work, no matter how local, but to safeguard such a possibility I would suggest that a limit should be placed on the amount which may be raised by the council for this purpose to, say. £5000. This would allow minor extensions to he carried out, yet protect tho people from ths council raising large loans for works which have not been sanctioned. I trust the clause will be amended by making the £5000 limit: if not, I am of the opinion the clause should be struck out altogether."