Local Bodies Cannot Borrow Money

Northern Advocate, 26 January 1938, Page 11

Local Bodies Cannot Borrow Money

[Special To “ Nortnern Advocate ”] PUKEKOHE, This Day. QOMMENTS on the Government’s attitude were made when a letter was received at the Franklin Power

Board meeting yesterday from the State Advances Corporation advising that at present an application for loan money by the board could not be dealt with.

The letter stated that the application had been filed for later consideration, and the board was left to try other sources in the meantime.

“It does not tally with the Government’s repeated declarations that it is out to help the man in the country,” said Mr W. T. Motion.

“Here we arc needing the money to extend our lines into the back country and we cannot get it,” continued Mr Motion. “We are tied down to

3£ per cent., the maximum interest we can pay, and where is the lendihg institution which will let us have it at less?

' “The Franklin County Council is facing the same position. It seems that the plethora of money we heard so much about is coming to an end. “Apparently the Government is taking all that the Public Trust and similar semi-State institutions have to spare, and the local bodies are loft to scramble for their requirements.”

The secretary reported that he had made inquiries in three other quarters, but could not obtain the required loan of £15,000. The board decided to appeal to the Hon. W. Nash, Minister of Finance, to make it possible for local bodies to borrow money at 3| per cent., as they required it to meet their obligations to their districts.