LOCAL BODIES' LOANS.

Oamaru Mail, Volume XXXVIII, Issue 10604, 5 November 1910, Page 1

LOCAL BODIES' LOANS.

HOW THEY ARE AVAILED 01''. STATE'S OPERATIONS ENCME- ■ .. RATED.- ;'- '. ,-„■. ■> By Telegraph. J' (From Our Owii Correspondent.) ?.-'</ , Wellington, November 4. Government's amendment of the -■. Local, Bodies Loans Act was hung up Ib'jvthe Opposition this afternoon for .'some time in a criticism of its pro■visions* which mainly in the direc"tion of, applying the State Guaranteed Advances Act to loans granted under part 2 of the Local Bodies Loans Act in certain cases.. r The Prime Minister, in replying, said' that he hoped to hear,no more'of the cry of the member ior Bruce and the Leader of the Opposition, that the sinking funds of the loans should bo invested locally. The State Guaranteed Advances Act, which the present Bill proposed to perfect by the removal of certain difficulties in the way of local bodies, had boon in,operation only eight i months, jet in that time loans had licen authorised to the amount of £1,330,601 to local bodies throughout the Dominion. He was liied of hoai--'m» v.-.oinbors talking about taking away a portion of the scheme by winch the sinking funds of these loans hnd to be invested in Government securities. The inteiest on the loans was only 3i per 1 cont.. and the local bodies, in addition, paid into a sinking fund which repaid tliv capital during the currency of a loan.

Mr Miissey: What is Ihe , sinking fund. v . .

I'ke Prime Minister: Ono pound seven and six, but let me remind the Leader of the Opposition Lhat" eighteen months ag>> local bodies could not get mone.s "at 6 per rent. Air\Massev :, You had no money to lend. ' , - • The Prime Minister: 'lhat was. the talc that the Leader of the Opposition told in the wilderness, but it is incorlect.

The Prime Minister went on to say Uiat by the Act the local bodies were beyond the possibility of having to rely on", any usurer-r-(-Hcar, hear) —who might take advantage of their necessities and bleed them and the. ratepayers they represented; yet some of them did not appear to like it, and the issue was raised by a few persons who wanted to obtain a high rate of interest from those desiring to borrow money in the four centres, that the public bodies should not be compelled to invest the sinking funds in C4overnment stock. The Leader of the Opposition and the'member for Bruce, now wanted, by repealing the. Act, to undo what had been done to protect tlv» local bodies from paying a high rate of interest. "Under the old Act, Sir Joseph AVard continued, the highest amount .advanced to local bodies in any twelve months had been £IBO,OOO, and, to say that it was the, better Act was utter nonsense. The limit authorised, in fact, was only -£250,000, of which £50,000 was lent to the. Lands Department in connection with lands opened for settlement. What has been advanced under the three departments, the Prime. Minister continued, to local bodies, settlers and workers? Under the three Acts the amount is £12,037,751, including what is authorised. It does not require anything from me to show the prodigious operations of the department in supplying money to the people 1 at a cheap rate. Advances have . been authorised to 30,785 settlers, and 27,528 have accepted them. Loans have been authorised to-5078 workers up to £1,325,000, and 4837 have accented loans up to £1.200,880. , '„ The Bill was.read a second time.