LOANS TO LOCAL BODIES.

New Zealand Herald, Volume XXIV, Issue 7898, 17 March 1887, Page 5

LOANS TO LOCAL BODIES.

[BY TELEGRAPH.PRESS ASSOCIATION.] Wellington, Wednesday The following memo. is supplied by the Treasury The point which has arisen between the Colonial Treasurer and some of the local bodies is very important. At present there are six cases concerned, but there is no knowing that other districts may not be acting in the same mistaken manner. The 21st section of the Loan to Local Bodies Act provides 'that where the ratepayers of any district do not exceed 100 instead of a poll a written consent may be taken.' The 12th section says ' that when a district is divided so that part of the district only applies for a loan all the provisions of the Act are to apply mutatis mutandis to such part of a district.' Several of the local bodies have, therefore, concluded that where any part of a district for which a Joan is being specially applied has not more than a hundred ratepayers the provisions of section 21 will apply, and they have, therefore, obtained written consents. The law officers hold that section 21 does not apply to part of a district. In some cases the difficulty if easily remedied by obtaining a poll, but iD others it is alleged that the written con »eut has been obtained partly from rate payers residing outside the district, and that ;f a poll were to be taken they would not attend to vote, and their votes as absentees would be virtually recorded against the loan. The matter 13 being further considered."