CITY SINKING FUNDS.

New Zealand Herald, Volume XLVI, Issue 14174, 24 September 1909, Page 6

CITY SINKING FUNDS.

LEGISLATION NECESSARY.

At last night's meeting of the City Council a letter was received from the Sinking Fund Commissioners with reference to certain 'moneys received by them for sinking fund purposes. The commissioners stated they had been advised that under the Auckland City Borrowing Act, 1899, no sinking fund was created, express provision being made by that Act that the provisions of ine Municipal Corporations Act, 1886, then in force as to sinking funds should not apply to loans raised under the Act of 1899. As the Council was aware, the Sinking Fund Commissioners had received moneys from the Council as sinking funds where no actual sinking fund had been created when the loans were raised, and they had also been advised that in effect they had not received such moneys in their capacity of commis- . sioners but as private individuals, owing to the exclusion of a sinking fund in the 1899 Act. They suggested for the consideration of the Council that it was not desirable that there should be practically, as now, two bodies receiving the Council's sinking funds, I and that, it would be preferable for the j Council to consider the expediency of ob- ; taining" an Act empowering the Council to ! appoint the Sinking Fund Commissioners to ; receive moneys by way of sinking funds towards repayment of certain loans where a sinking fund was not arranged in respect of some of the Council's loans. In the meantime with reference to the sinking funds (socalled) in question it must be distinctly understood that the present commissioners as ', individuals were answerable to the Council alone and not to any debenture-holders. The city treasurer reported that £6192 10s i had been handed over to the commissioners, ; who had administered it without legal ; powers. A short local Bill validating the ; payments and constituting the present comi missioners for the sinking fund appeared the I best way out of the difficulty, but it might be found that Parliament would not approve of a Bill appointing any other than the Public Trustee, who under the latest Act was the only person who could act as a commissioner for sinking funds. The city solicitor also advised to the above effect. ' • The Finance Committee recommended that provision be made in the Loans Consolidation Bill to be introduced into the next session of Parliament validating the action taken, and this was agreed to.