RAISING LOANS

New Zealand Herald, Volume LXXIII, Issue 22544, 8 October 1936, Page 13

RAISING LOANS

LOCAL BODIES' POWER CASES WITHOUT POLLS NEW PROCEDURE DEFINED [bv telegraph— special reporter] WELLIN'<• TON, Wednesday Modified® arrangements with regard to the borrowing power of local authorities are contained in the Finance Bill No. 2, which was introduced in the House of Representatives to-day by Governor-General's Message. Power is given for local bodies to borrow without polls of ratepayers for public works subsidised from the Employment Promotion Fund. A special order will be necessary either under the terms of any existing Act or by a resolution passed by the local authority concerned at a special meeting convened for that purpose. Four weeks' notice of the special meeting must be given, with weekly announcements, and the resolution embracing the special order must be confirmed at a subsequent meeting not sooner than 28 days, nor later than 48 days, after the date.of the special meeting. Right to Demand Poll However, at any time after the date of^the special meeting, and before the confirmation of the resolution, a requisition may be made by at least 5 per cent of the ratepayers on the roll demanding a poll to be taken on the proposal to raise the loan. Notification of this particular provision must bo given in every public notice regarding the special resolution. Notice of the intention of a local authority to raise a loan under the new legislation is not to bo given until after the confirmation of the resolution embodying the special order required.

1 Another clause in the bill .authorises electric-power boards to raise additional loans for reticulation purposes without polls of ratepayers. The provision is confined tcr boards which have raised Joans and levied special rates as security. As in the case of local authorities generally 5 per cent of the ratepayers concerned may demand that a poll be taken. Validating Clauses

The payment of interest by local authorities on renewal loans is also dealt with in tho bill. It is declared lawful for a local authority to pay interest on moneys borrowed for the purpose of paying off an existing loan in respect of the period intervening between the fresh borrowing and the repayment. This authority is to have retrospective' application. The borrowing by hospital boards by way of bank overdraft during the year ended March .'3l last is validated. However, the amount must have been approved by the Minister of Health. Expenditure by local authorities in connection with'the death of King George V. and the accession of King Edward VIJLI. is also validated. CONTROL AND PRICES RESULTS OF INTERFERENCE MR. C. A. WILKINSON'S VIEWS [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Wednesday Support for the request that the Industrial Efficiency Bill should be held over for further consideration was voiced by Mr. C. A. Wilkinson (Opposition—Egmont), in speaking to the Opposition amendment on the second reading of the bill in the House tonight.

"The bill seems to be altogether too sweeping in its incidence," said Mr. Wilkinson. "It affects almost every business man in New Zealand, and I am suro that not one in 100 knows anything about it. The Government has failed in its duty in not having evidence called for and against this measure and its very magnitude is a reason why it should, be held over for further consideration."

Mr. Wilkinson said ho did not agree with those who said that no organisation was necessary, because he believed that many industries in New Zealand were badly in need of it. "Under this bill a man like Henry Ford would in all probability not have been allowed to start his motor business," he added. "There would have been too many conditions to satisfy in the first place." Mr. Wilkinson suggested that the bill would have the effect of increasing prices and stated that the Government had already raised the prices of bread, flour, wheat and petrol. Mr. J. A. Lee (Government —Grey Lynn): And the rate of wages and pensions.

The Minister of Industries and Commerce, the Hon. D. G. Sullivan: With the price of wheat in Australia today bread jyould have been much dearer in New Zealand if 1 had not fixed the price. Mr. Wilkinson: For j-ears past the price of bread has been excessive, as the result of Government action. In conclusion, Mr, JVilkinson said that under the terms of the bill the Minister could, impose quotas, control output, provide for standardisation and impose penalties. It seemed as though the Government thought it must control everything under the sun.

LESSON FROM SOVIET expansion of industry LABOUR MEMBER'S CLAIMS [HY TELEGRAPH' —SPECIAL REPORTER] WELLINGTON, Wednesday A pica for the reorganisation of industry as proposed under the Industrial Efficiency Bill was made by Mr. L. G. Lowry (Government —Otaki) on the resumption of the second reading dobate on the bill in the House to-day. Referring to criticism by Mr. S. G. Smith (Opposition—New Plymouth) that the bill embodied the Russian philosophy of industry, Mr. Lowry said the expansion of industry under the Soviet regime had been remarkable, and New Zealand might be abl* to learn something from that philosophy. Although he was well content to live in New Zealand ho deprecated criticism of a social order that had contributed something to the progress of mankind. lMr. Lowry emphasised the importance of organising industry in New Zealand with the object of absorbing the unemployed and later bringing immigrants to people the country for defence and general development purposes. The bill represented an attempt to rationalise and co-ordinate industry with a view to eliminating wasteful competition, raising the standard . of living of the worker, making commerce healthier and benefiting the consumer It was designed to bring about goodwill between the employer, employee and the public, and to remove the free and unfettered competi tion that was not conducive to the national welfare.