LOCAL BORROWING

New Zealand Times, Volume LI, Issue 11933, 13 September 1924, Page 4

LOCAL BORROWING

LEGISLATOR’S PROTEST TOTAL INDEBTEDNESS SAID TO BE £37,000,000. BOARD SUGGESTED. “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 yesterday, 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 a sum than £37,000,000 of money,” the hon. gentleman continued, “and of that amount no less a sum than £4,000,000 has been obtained from tbe Advances to Settlers Department. That £4,000,QOO would have been far more usefully applied had it been used for the settlers and not for tho municipalities. I feel that all these loans that are authorised to be made by local bodies should go before a board, and that that board should be 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 euch 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. If. W. Alison said there was no doubt thero was a tendency at the present time on the part of iocal bodies to over-borrow, and he thought there would be a general expression of opinion favourable to the view of Mr Izard. \