LOCAL BODIES

Evening Post, Volume CXVI, Issue 146, 18 December 1933, Page 10

LOCAL BODIES

RIGHT TO BORROW

EXTENSION OF AUTHORITY

An extension of the financial authorities of local bodies is proposed in the Finance Bill introduced in the House of Representatives on Saturday night. AVith the consent'of .the Government, local bodies will bo allowed to borrow by the issue of stock in addition to debentures. AVhe'n the funds are raised in New Zealand the stock is to be inscribed in the books of the Reserve Bank of New Zealand; if the finance is provided overseas the inscription is to be in the books of a bank or other corporation approved by the Government. The form of stock'or other certificates to be issued will be prescribed by regulation. No claim for principal or interest is to attach to the Government or be paid out of the' public revenues. . • It is also provided that if the proceeds of a special rate levied over a portion of a district is insufficient to meet the charges oh a special loan, it will be possible for a local body affected to meet the deficiency out of its general account. The temporary application of general funds for the purposes of a loan is not to debar a local authority from raising that, loan, the proceeds of which, to tho extent required, may be utilised for reimbursement. The limit of repayment, without the prior consent.of the Local Government ' Loans Board, is fixed at two years from the date the general funds' were temporarily applied. The existing legislation authorising local bodies, with the concurrence of the Unemployment Board, to spend money on relief work on private property is extended to permit of interest being charged on advances made by the board to the local authority. Power is given local authorities to advance moneys out of the general account for the execution of capital works for the benefit, of defined portions of their districts. The cost of the works is to be debited, to a separate account,, and the advances may be recouped by instalments as the result of the levy of an annual recurring special works rate within the area; the proceeds to be applied until'tho debit balance is extinguished. On-the other hand,\ the local bodies concerned have tho option of extinguishing the whole or part of the debit balance by transfer from the general account. Power is given for the periodical increasing or diminishing of the special works rato so that the annual yield will be' sufficient for payment .of interest, and. recoupment of the advance. If. there is a surplus from the realisation after the liability has been satisfied, it may be applied to other works in the area. Liability is placed on drainage boards to prevent watercourses and drains from becoming a nuisance or injurious to health, and to ensure their proper cleaning, cleansing, and maintenance. Neglect of this requirement will make them liable to the owners or occupiers of the land for damage arising out of disrepair. *