LOCAL BODY DEBTS

New Zealand Herald, Volume LXX, Issue 21493, 17 May 1933, Page 14

LOCAL BODY DEBTS

INTERNAL CONVERSIONS POSITION IN AUCKLAND PREPARATION OF . REPORTS EARLY DECISIONS LIKELY The desirability of converting their internal loans seems to be generally appreciated by Auckland local bodies, and, as a, result of the circular issued by the Local Government Loans Board this week, it is expected decisions will be expedited. Most local bodies have given instructions that reports on the Eubject should be prepared, but until these have been considered by tho members no information is available i-egarding tho effect of conversion on (the financial arrangements of the [various authorities. "This - question was left over for the (new council to decide," said the Mayor, [Mr. G. 'W. Hutchison, yesterday. "A report has been prepared and will be jconsidered by the Finance Committee ion Monday. However, a decision cannot [be made until the meeting of tho City Council on' June 1." ■

A report will also bo laid before the LAnckland Electric-Power Board at its annual meeting on Monday. The chairman, Mr. W. J. Holdsworth, who is also a member of tho Local Government [Loans Board, said recommendations on the matter had been prepared for tho iboard's consideration. Other local bodies- are investigating .the scheme, but are not yet in a position to /divulge the progress made. The degree of difficulty in reaching a satisifactory basis varies considerably, particularly as some bodies will have to treat with many interests while others are confined to a few lending institutions.

The Loans Board's circular has been issued to all Mayors, and tho chairmen of county ; councils, power boards and harbour boards. The Minister of Finance, the Rt. Hon. J. G. Coates, is also taking an active part in the movement to encourage local bodies to con.vert.

The local authority debt domiciled in New Zealand and held by the public amounts to £39,584,000. Of this amount £19,147,000 was issued by cities and boroughs, £6,774,000 by electric-power boards, £4,581,000 by harbour boards, £4,111.000 by county councils, £1,994,000 by urban drainage boards and £1,207,000 by transport boards. The balance of £1,770,000 is represented by the debts of town, road, river, rural drainage, rabbit, fire, water supply and local railway boards and gas lighting authorities. >■ .

Forty per cent of local body borrowing is represented by overseas holdings, the United Kingdom's share being 27 •jper cent and Australia's 13 per cent.