LOCAL BODY LOANS

Poverty Bay Herald, Volume LXIII, Issue 19023, 25 May 1936, Page 13

LOCAL BODY LOANS

SUPERVISION EY EOARD LAST YEAR'S OPERATIONS £.1,550,(100 OF NEW .MONEY (Per Press Association.) WELLINGTON, Ibis day. The Minister of Finance, the Hon. \V. Nash, has furnished the following information regarding the operations of the Local t.iovernnient Loans Board for the 12 months ended March 31, 1036. together with comparative figures for previous years, and a resume of the conversion operations in connection with the whole of Ihe local body debt in the Dominion, which are now practically completed. The total amount of applications submilted to the board for general loans, i.e., exclusive of conversion .schemes, during the year amounted to .114,235.926. and of this sum C4.061.C76 was represented 'by new applications and £174,850 by the total of sums which previously were referred back lo the local bodies concerned, and again submitted for reconsideration. Loans sanctioned were : Redemption loans. £2,051,790; new loans. £1,550,690; referred back and declined, £633,446. Of the amount of redemption loans sanctioned, the tolal figure given takes the place ol a previous debt ol' £2,196,079. FOR RENEWAL LOANS Since 1927-28 the total of applications has amounted !to £32y0T0,404. The amounts sanctioned we're £16,093,550 lot new works and £13,621,054 lor redemption loans. The difference, namely £5.089,850, represents amounts referred back and declined by the board during the period in question. As £1,625,000 ol Iho amount- sanctioned for renewal loans during the year under review was in respect ol two London loans, the balance oi renewal loans for all other local bodies totalled only £426,790, which was a marked reduction on the renewal loans of previous years. This was brought, about largely by the conversion operations, which resulted in arrangements being 'made I'oi a complete liquidation of (he debt then dealt with within the new terms authorised, thus obviating the necessity foi renewal loans. In addition lo the figures supplied above, a total ol £114,181 was dealt with during tin year as representing applications in respect of the disposal of capital moneys and unexpended loan balances under tin provisions of section 20 of the Finauet Act. 1934. and section 47 of the Finance Act. 1929. The Minister quoted figures showiii". the total loan indebtedness of all local authorities in New Zealand since 1915. when the figure was £24,538.721. It reached a peak in 1931, when it was G72.686.C36. and in. 1935 stood at £71.245,458. The rate of increase mounted greatly iu the post-war years, but had fallen away since 1927, when the Local Government Loans Hoard had exercised a steading influence in the held of local body finance. " CONVERSION OPERATIONS The local body debt convertible at March 31. 1933, was £48,456,645. By Decem'bcr 31. 1935, £43,540.169 bad been couverted and £2,924,2«U had been repaid, renewed, or excluded, leaving £1.992.235 outstanding. Of 493 local authorities. 343 had converted their debt. The remainder had either not taken action, or the amounts were too small to warrant, conversion. Applications art still being received for conversion. The Local Government Loans Board some 18 months ago iixed a basic rate at which all local authorities might borrow at. 3i per cent, and has, maintained this rate to the present time. It. would appear that no great diilicuUy has been experienced by local authorities in ob-ain-ing loan requirements at. this rate. The renewed activity of local bodies within reasonable bounds will assist the Government iu its policy of providing useful employment for those who are at present unemployed-