MONEY FOR HIGHWAYS.

New Zealand Herald, Volume LXII, Issue 18996, 18 April 1925, Page 10

MONEY FOR HIGHWAYS.

LOCAL BODIES' LOANS. THE RATE OF INTEREST. WORK ON GREAT SOUTH ROAD. For some considerable time local bodies interested in improvement o! tho Great South Road havo been endeavouring to gain Government consent to raise loan money at 6 per cent, interest instead of at the stipulated rate of 5£- per cent. During the last visit to Auckland of the Hon. J. G. Coates, Minister for Public Works, he was interviewed by a deputation from the Great South Road Improvement Association. The deputation asked the Minister to approach the Minister for Finance with a view to obtaining permission for local bodies concerned with tho Great South Road between Auckland and Papakura, to borrow money for its reconditioning at 6 per cent. The chairman of tho association, Mr. David L. Nathan, has since received from Mr. J. S. Dickson, M.P., a letter from Mr. Coates stating he had referred tho matter to the Minister for Finance, who had replied as follows: — " I nave to advise you that in the circumstances there will be no objection to a loan at the rate of 6 per cent. As regards the raising of the loan, apart from the State lending departments, the Government has no fund out of which loans to local bodies may be made. The legislation of last year"empowered local authorities to borrow for main highways, as for • their other purposes, in tho open market." Mr. Nathan stated yesterday that the concession was a very welcome one and would be referred to all the local bodies concerned.