LOCAL BODIES' FINANCE

New Zealand Herald, Volume LXI, Issue 18813, 13 September 1924, Page 12

LOCAL BODIES' FINANCE

EXCESSIVE BORROWING. RESTRICTIONS SUGGESTED. SUPERVISION BY BOARD. [BE TELEGRAPH. —SPECTAL REPORTER.] WELLINGTON. Friday. "I rise to protest against the system under which local bodies are allowed to borrow money," said the Hon. C. H. Izard in the Legislative Council to-day, when the New Plymouth Borough Council Empowering Bill was before the Council. "The indebtedness of local bodies in New Zealand to-day is no less than £37,000,000, and of that amount no less than £4,000,000 has beon obtained frcan the Advances Department. That £4,000,000 would have been far more usefully applied had it been used for the settlers, and not for the municipalities. "I feel that all these loans that are authorised to be made by local bodies Bhould go before a board, constituted by the Government, who should consider the advisability of whether the money should be obtained not only from the point of view of the borough, but from the point of view of the Dominion. I ask for such a board as the Board of Trade in England, someone not particularly interested in the district, who would be able to protect the ratepayers against themselves." The Hon. E. W. Alison said there was no doubt a tendency on the part of local bodies to over-borrow, and he thought there would be a general expression of opinion favourable to the view of Mr. Izard.