LOCAL LOANS

New Zealand Times, Volume LIII, Issue 12507, 24 July 1926, Page 2

LOCAL LOANS

PRIME MINISTER EXPLAINS POLICY OF GOVERNMENT BOARD TO BE SET UP HOW APPLICATIONS FROM LOCAL BODIES WILL BE DEALI WITH The Local Government Loan* Board Bill wai brought down in the House of Representative* yesterday afternoon' by GovernorGeneral’s message, and the Prime Minister’s explanation of its provisions gave rise to an interesting half-hour’* talk. Mr Coate* detailed the procedure in the case of applications from local bodies, but explained that it was not intended the board should have anything to do with the supervision of Gov ernment undertakings. There was nothing remarkable about the Bill; there was a Local Government Board in England.

Xlie Leader of the Opposition, Mr H. E. Holland, asked if Mr Coates would briefly explain the measure, and say the extent to which it proposed to interfere with the powers of local bodies. The Prime Minister, the Right Hon. J. G. Coates, said that the Bill made provision 'for the establishment of a board winch would bo known as the Local Government Loans Board. There would be seven members on the board. All applications for loans prior to a poll being taken would have to be made to the board, who would investigate and make what recommendation they thought necessary to the local authority, which then might proceed with the poll. The poll having been taken ond having been O.KJd by the board, the Minister for Finance may issue an Order-in-Council. Roughly, that was the principle of the Bill.. Sir Joseph AVard asked if the board would go to any place where a poll was to bo taken, or whether the local authorities would com© to AVeilington. That point, he considered, was important. If it were more convenient, ho would wait for an answer till after th© machinery of the Bill could be seen, but, on the face, it looked just a little awkwardMr Coates: Do you' mean a local body which desires to take a poll? Sir Joseph AVard: Yes. RENEWABLE APPLICATIONS Air Coates: They communicate with the Looai Government Board. There are Government departments represented on that board (such as the Publib Works Department and the Treasury). Their offices are more or less spread about the country, and they will immediately get into touch with the local authority as to the nattive of the work, the length of the loan, etc. Tho matter will be reported to the board, who will, if it thinks fit? i».K ii, and the local authority will then proceed to go to the poll. The board’s approval will be stated on the ballot paper. If the board turns down a proposal to box’row, the loan is turned down. There is no poll and nothing further happens; the local authority cannot raise the money and the posiion stops at that for twelve months. After twelve months they may renew their application. The present system is that the Minister for Finance issues an Order-in-Council, and it is purely a formal matter. Under the Bill the Local Government Board takes the whole responsibility at once and it is entirely removed from tho Minister. . Air Sidey asked whether the, Prime Minister would allow ample Gme to permit of local authorities making representations to members and if necessary giving evidence before a committee. WHAT OF STATE WORKS? Mr Forbes asked if a similar thing could be done with the works of the Government. Could there bo a board to say whether some of their undertakings wer* necessary or advisable? ,Mr Fraser: I take it tho Bill will be sent to the Local Bills Committee, or

some special committee, so that all the local bodies interested will have ample opportunity of. stating their views on the matter. Every point of view should be heard on such an important proposal. Mr Veitch: I have had very strong representations from my electorate against this Bill. It is viewed witli very great alarm by at least one local body. I think it is about the most remarkable principle ever embodied in a Bill in any British Parliament. The responsibilities of local bodies are to be taken away and to be handed over to a group of Government officials. Mr Lysnar: You have not seen the Bill yet. , Mr Veitch: lam only going on what the Prime Minister has told us. I presume ho knows what is'in the Bill. It seems to me the first effect of this Bill will be to bring disaster to minor harbour boards while the major boards will get what is going, and the Railway Department will reap a rich harvest at the expense of the harbours. Sir Horn; It seems to me this Bill is going bo upset the present astern of raising loans for local works. Sir Joseph Ward (laughingly) : Of course it does. Mr Horn said thpt at present the local people were safeguarded by the poll, and surely they were better acquainted with the needs of the district than were the people who would compose the boai'd which the Bill proposed to set up. Particularly would this he tho ease in rural districts. The House should bo very careful before passing a measure of this kind. Mr Coates: This is all argumentative ; I have not made my second reading speech yet. Mr Horn; Then I will just point out that the proposal is a big infringement of the rights of .public bodies. NO MEAN ADVANTAGE Replying to the questions which had been asked, Mr Coates said the Government would give what time it possibly could for local bodies to state their views, but they were not going to give a whole lot of time, for if they did they would be in an awkward position with their legislation. Bills were being sent to committees, and he did r.ot know when they would come back from tliosa comuittees. He was going to reserve to himself now the right to say that what Government business came along from this onward should he dealt with as expeditiously as posy sible. But there was no intention of taking a mean advantage; ample opportunity would be given, particularly in regard to this '■ Bill because he recognised there was more than one side to the question. Ab to the suggestion of Mr Forbes, it was not intended that this board should have the supervision of Government undertakings. The Bill was not remarkable as Mr Veitch had said; there was a Local Government Board in England. Mr Fraser: Are you sending it to the Local Bills Committee? Mr Coates: I am not sure. The Committee of the House can deal with it just as well as "anyone else, as far ns I know.