BORROWING FOR RELIEF.

Hawera Star, Volume LIII, 2 August 1933, Page 4

BORROWING FOR RELIEF.

The protest made by the Mayor of Auckland against the Local Government Loans Bound’s refusal to sanction the raising of a loan by the Auckland City Council without a poll of ratepayers lias failed to arouse much sympathy. The provision in. the Unemployment Act empowering local bodies to raise loans for relief works without a previous poll was inserted on the assumption 'that unemployment was a temporary problem. It is now clear that the process of economic recovery, and consequently the liquidation of unemployment, will be spread over several years. The Government is therefore wise to insist that henceforth borrowing for unemployment relief works shall be subject to the same safeguards as apply to other classes of borrowing. In the .laist- 20 years tho gro;ss debt of local bodies has risen from £.19,000,000 to £72,700,000, the debt per head fa-.cvm £lB to £4S, and the debt charge from ISs 2d to £3 3s lid. Moreover, although State and private borrowing has been reduced since .1920, local body borrowing has continued to increase. As almost every increase in local body indebtedness means an increase in the fixed charges on land, charges which are already too high, it is most necessary that the Local Government Loans Board should examine searchrngly all the applications that come before it. Tho refusal of the loan sanction has doubtlessMn'eonvanlonced the Auckland council and caused disappointment in the northern, city, but it is impossible to question tho soundness of the Board , ’s decision.