LOANS OF LOCAL BODIES.

Manawatu Standard, Volume LIV, Issue 285, 30 October 1934, Page 2

LOANS OF LOCAL BODIES.

BOARD’S POWERS CRITICISED,

On the Local Authorities 'lnterest Reduction and Loans Conversion Amendment Bill, Mr A. E. Ju’.l took exception to the power given to the Local Bodies Loans Board to sanction the raising of loans by counties who complied with certain conditions without a poll of the ratepayers. He said the Local Bodies Loans Board was seeking to over-ride the powers of local authorities and to make itself omnipotent. A. considerable amount of dissatisfaction had been caused throughout the counties. He thought that clause 8 might well be withdrawn, as, in his opinion, it would serve no good purpose. He considered that a dangerous proposal should not he inserted in that insidious wa/. It was an insidious attempt to undermine ordinary local body finance.

Rt. Hon. J. G. Coates, in reply, said that many local authorities could not consolidate their loans until they had machinery provided. In clause 8 the purpose of the consolidation was to have a uniform rate over the whole of a county. He did not care whether the clause was in or out. because the clause had been inserted at the request of several counties. Had the Local Bodies Loans Board been in existence many years ago, he thought that local bodies would not have had the money troubles they had at present.

The suggestion was that a limit of £IOOO should be placed on the amount that could he raised without a poll of ratepayers, but Mr Coates said that would not suit some local bodies, who desired to raise one loan to pay off another. He moved that the clause be amended to provide that a special loan not exceeding £IOOO could be raised without a poll. Mr W. J. Broadfoot thought, the original clause was more suitable to counties where much work remained to be done than the amendment, the amount contained in which was too low.

The amendment was agreed to and the Committee stage was completed.

The Bill was later lead the third time and passed.