ILLEGAL USE OF LOANS

Evening Post, Volume CXIV, Issue 101, 26 October 1932, Page 10

ILLEGAL USE OF LOANS

♦ Further reference was made at: last evening's meeting of the Lower Hutt Borough Council to "tags" which have appeared on the council's balance-sheets during past years in regard to the council placing loan balances in the" general account in order to save interest on the overdraft. The Finance Committee recommended last ev.ening that tho loan moneys be withdrawn from the general account, that the loan accounts be reimbursed, and that an explanation be : sent rto the AuditorGeneral. Councillor Campbell said ho hoped the matter would not end when the committee's recommendation was carried out. It was ridiculous that a local body with money lying idle in » loan account could not use such money; to reduce the amount of interest payable on-its overdraft. It might be good law, but it certainly was bad business. He was sure the banks would not desire to take advantage of such an anomaly in the law. The Auditor-General had no option but to act as he had done, but the council should take steps to have the law altered. Councillor strongly supported Councillor Campbell, and it was arranged that the Mayor and the Town Clerk should report upon the- best steps to take to have the law amended. Mr. D. A. Aiken, managing director of the Union Steam Ship Company, and Mrs. Aiken ; returned to Wellington yetterday from Hastings,