LOCAL BODY BORROWING

New Zealand Herald, Volume LXXVI, Issue 23361, 1 June 1939, Page 10

LOCAL BODY BORROWING

In a growing city like Auckland, it is inevitable that local authorities from time to time should seek fresh capital for developmental purposes. There is evidence that a period of this nature lies immediately ahead, and as a result a strong argument exists for a co-ordination of the financial requirements of the various local authorities concerned. The Auckland City Council, for instance, is proposing to borrow £2*25,000 for extensions and improvements to the city's water supply. The Auckland Harbour Board is raising £200,000 as the first portion of an authorisation of £1,000,000; the Auckland Electric-Power Board is seeking additional capital for reticulation and general expansion; the Auckland Transport Board is in need of fresh money; and the Auckland Hospital Board before long will require to finance an extensive building programme. When such a variety of claims is put forward, there is a considerable risk of disturbance to the money market, with the accompanying possibility that some applicants may be forced to pay more than is necessary for their financial requirements. It would be to the advantage of all if their chairmen were to meet at intervals to discuss future programmes of capital works and to arrange among themselves some order of priority and co-operation in the raising of finance. In this manner developmental works throughout the metropolitan area could be more carefully planned, while competition for finance, which in the end reacts against the ratepayer, could be to some extent eliminated. It might also be possible to promote adherence to the excellent principle laid down by the directors of the Reserve Bank in their last report to Parliament —that the extent of public works should be regulated as far as practicable according to the state of employment in other directions.