LOCAL BORROWING

Evening Post, Volume CX, Issue 141, 11 December 1925, Page 9

LOCAL BORROWING

"economy™^tfHoro 0N

London money market and high current rates of interest on loans may be a blessing in disguise. Sir George Elliot, in addressing shareholders of the Bank of New Zealand to-day, stated that •"much of the'recent expenditure of local bodies has been unwarranted. Hydroelectric reticulation schemes, especially those serving, scattered populations, must for many year 3be a burden on the ratepayers. There has also been unjustifiable expenditure by harbour boards desiring to encourage overseas shipping, upon harbours where the total export trade of the district served would not, if the produce could be held up for a year, completely fill one average-sized

'\Lb far as the flotation of loans is concerned, New Zealand will in the future, I think, have to depend upon her own resources to a greater eatent *han has been the case in the past; and, unless loan issues are carefully and judiciously spread, high rates of interest will have to be paid. "Economy has been preached from this chair for years, but it appears, to me that it would be superfluous to say much upon that subject to-day. There..are signs of the times which may easily be read and which at the moment indicate that economy will be forced on the public and local bodies whether they like it or not. It is not an original idea, but I think it is a good one, that contemplated expenditure by public bodies on local works should first be reported on by a competent Government official, and that his report should be circulated throughout the district before a vote of the ratepayers is taken on the question."