FIRE BOARDS' BORROWING POWERS

Otago Daily Times, Issue 14715, 24 December 1909, Page 9

FIRE BOARDS' BORROWING POWERS

% GOVERNMENT'S ACTION CONDEMNED.

Tho persistence -with which tho Hon. D, Buddo, as Minister of Internal Affaire, refuses to grant to the Fire Boards of Now Zealand tho legislation asked for in respect of their borrowing powers has created a great deal of dissatisfaction among those concerned. In fact, tho attitude taken up by the Minister has been characterised as quite incomprehensible. Mr T. Chalmer (chairman of tho Dunedin Fire Board) had something to say on the matter to a Times reporter yesterday, his remarks boing prompted by a statement telegraphed from Wellington that Mr G. M. Thomson, M.l\, had been informed that there wero difficulties in tho way of tho.Government "extending" tho existing borrowing powers of Fire Boards, as they had no rating authority.

"Tho Minister docs not understand tho position at all," said Mr Chalmer. "He that boards cannot bo given an extension of their borrowing powers, but neither tho Dunedin Board, nor any other board, so far as I am aware, has asked for an extension of ils borrowing powers. We aro perfectly satisfied with tho' limit laid down in the act—namely, £10,000; but what wo desire is the inclusion in tho act of tho Jtecesnary machinery clauses to givo the power to tho dolwnluro holders, if debentures woro issued, to compel the board to include tho amount necessary for sinking fund and interest in tho year's annual estimates, and thus obtain a guarantee as to tho security of the money loaned by them to the board. Under the present state of things, a board could borrow money upon debentures and then ignore its obligations in respect of tho debenture-holders, who would bo powerless to compel the board to mako provision for the repayment of tho money borrowed. A clause giving tho debenturc-holdoi-s this power is what we want inserted in tho act. As at present, any persons taking up debentures would bo simply doing so at their own risk, and a board could hardly look to tho public to take up debentures and loan money out under t-hoso conditions. The Fire Brigades Boards in Victoria aro working under precisely tho same conditions-that wo aro asking for, and raiso a good deal of money by issuing debentures without any trouble. They, like tho New Zealand boards, liavfi no rating powers, ami it was on tho lines of tho Victorian act thai it was desired tho New Zealand act should bo framed. 1 quilo fail to understand whi;t tho Minister is continually driving at. Ho holds out that hoards havo no rating powers. Exactly; but wo derive our revenue just the sani3 from tho insuranoc companies and tlio local authority (the City Council). Wo mako an annual estimate of our requirements, wnd once that is approved by tho Minister the insurance companies and the local body have to contribute accordingly. Tho fact of our not being able to go to tho public aiid oner our debentures with any guarantee- that wo will pay, or that wo can be compelled to pay, means that we aro at a complete standstill. I'owor has been given to borrow money, and the necessary details to give effect to it havo been omitted from the act. Another instance of hurried legislation, " Wo are now paying in interest and charges somewhere about £450 a year for unsuitable accommodation for our brigades, while wo havo a site and our plans ready for placing the whole system in a favourtiblo position, but cannot go on with the whome outlined because wo have no money, and aro denied tho opportunity of obtaining il. The only courso open to us would Ik to levy for tho whole amount required for tlis woifo we have decided on, which would mean making a very heavy demand indeed upon tho contributing bodies, whereas if wo were in a position to raise the money by tha issue of debentures tho capital east could be spread over a number of ycare— in our case probably 3D veins. By levying on tho contributing bodies for tho whole amount it would mean that the City Council would have to pay £5000 and tho insurance companies £5000, in addition to the ordinary annual expenditure of the brigade. Add that, of course, would be manifestly unfair."