LOCAL BODIES' LOANS.

Poverty Bay Herald, Volume XXXX, Issue 13140, 29 July 1913, Page 6

LOCAL BODIES' LOANS.

(From Our Parliamentary Reporter.) WELLINGTON, this day The Local Bodies Loans Bill was brought down to-day by Governor's message. It gives the local authority power to raise a special loan for public works or for the conversion of the whole or part of any special loans for which the body ia liable. It also gives authority and power to raise a loan for -work benefiting any particular part of the district. It further provides for the raising of joint loans by two or more local bodies, the question of apportionment to be agreed upon. Out of the loan money the borrowing authority may ! pay preliminary expenses, the first year's interest, and the cost of maintenance or repair of any public work for which the loan is raised. Provision is made for advertising the proposal and taking a poll of ratepayers, the proposal to be carried 'by a three-fifths, majority. In the case of a borough an absolute majority is sufficient. Any false statement regarding a- proposal published by a chairman knowingly is liable to a penalty not exceeding £500. IT there is any dispute over the result of a poll, six ratepayers may require an inquiry. If no part of the money authorised be borrowed within two years of the poll, the authority lapses. The Bill gives a local body power to raise money without a. poll to repay overdraft or other lawful liabilities connected with a previous special loan, paying off a loan, or consolidating a special loan, provided the annual charge to the district is not increased ; also for any public work Authorised by special order, and whore ratepayers affected do not exceed 100, , m which case the consent is necessary of three-fourths having tho major capital value of property obtained by signature. Power is given to raise, an additional 10 per cent, without a poll . for the completion of work. The clauses dealing with security provide, in* addition to the subject of the loan and any other property of a local authority, a., special rate, to be annuallyrecuxring, to cpvex all charges on all rateable property m the area specified. The Bill authorises counties to levy a special bridge, rate not to exceed one farthing m the pound on the capital value of rateable property. \ It also makes provision for l6aiis for public works m mining districts, with a rate on running privileges. In such cases the goldfields revenue may be pledged. * The Bill includes debenture provisions with, a maximum interest of 5 per cent, with a term limit of 50 years ; also sinking fund provisions. There are penal clauses for illegal borrowing. The Bill also deals with loans to local bodies by the Advances Oflace, which arc limited to a total of £60,000 m three years to any body. Preference will be given to loans for roads and bridges m outlying districts; tho rate to, be charged is 4£ per cent., or oneeighth more than the total rate at, which the money was raised, whichever is the greater. The Bill fixes the total amount to be set aside for advances for construction of roads and bridges m outlying districts tq £250,000 a. year for ten years following the Act. Statemiaranteed loans shall not exceed £500,000 a year. Provision is made for such debentures to bear 5 per cent, interest, and, to be payable within 66 years. ■ ___^_

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