UNEMPLOYMENT LOANS

Evening Post, Volume CXVI, Issue 21, 25 July 1933, Page 11

UNEMPLOYMENT LOANS

LEGISLATION EXPIRING

It is not the intention of the Government to renew the legislation which provides that local bodies may raise loans for the purpose of unemployment relief without the consent of the ratepayers. In making this announcement last evening, tho Acting ' Brimo Minister (the Bt. Hon. J. G. Coates) said tho legislation would expire on July 31. The Government felt that the time had arrived when local authorities should consult ratepayers in. connection with any proposals to raiso further loan moneys, for in tho. long run it was-tho ratepayers who must meet tho special rates which had to be struck as security for loans raised. AVhen the legislation, was first enacted in 1926 it was intended only as a temporary measure to tide over the initial stages of unemployment, which no ona at that time thought would extend over a long period of years. Incidentally, in. . 1926 there was no unemployment taxation and the relief which was. then given was Jjy means of tho acceleration of public works. The authority to borrow without taking -a poll of the ratepayers was a, part of the plan then conceived to speed up public, works and thereby create ■employment. The Minister said that .because' it was not proposed to renew the legislation, it did not mean that the normal development work of local authorities would bo affected, which as in the past would be financed by means of loans authorised'by a, poll of the ratepayers,