LOCAL BODIES LOANS.

Rangitikei Advocate and Manawatu Argus, Volume XXXVI, Issue 10476, 11 October 1912, Page 3

LOCAL BODIES LOANS.

Per Press Association. Wellington, October 10. At to-day’s inquiry by the Public Accounts Committee into the allocation of loans to local bodies under the State Guaranteed Advances Act, Mr Poynton, Superintendent of the Department, produced returns giving details of loans granted under the old Loans to Local Bodies Act. During the period of 25 years that this Act was in operation £1,300,000 was lent to local bodies, and during the two years the State Guaranteed Advances Act had been in force loans authorised to local bodies totalled £665,430. During the same period of 25 years Borough Councils received £732,021, and the amount they received under tiie new Act was £797,590, final approvals being for £1,026,740. For Road Boards under the old Act £615,674 was loaned and under the new Ast £211,300 was approved and £148,230 paid. Sir Joseph Ward said he proposed to give evidence on oath, and say from his own knowledge that during the last 20 years the local bodies had been unable to obtain sufficient money for their requirements. Mr Poynton, continuing, said the cost of administration of the Department was per every £IOO of capital employed. Questioned by Mr Allen, witness said in sending a letter asking for an inquiry, the Board had before it the press reports of the debate in Parliament. Members of the Board were very excited about the matter and agreed with him that the sooner the inquiry was held the better. The Minitser had made no charge in the House against the Board, but ne thought that what he said implied that the Board had been influneced by political motives. The Board could not grant a loan without the approval of the Minister, but recommendations for loans was sent to the Minister by the Board. Mr Poynton was closely examined by the Minister regarding the granting of a loan of £87,635 to Remuera Road Board near the time of the general election of 1911, and also with regard to other loans granted to boroughs. There had been very few approvals since the present Ministry came into office. It would be necessary to raise about £300,000 this year to pay amounts coming due for next year commitments which were £250,000, and for the following year about £IOO,OOO. Generally the Board refused loan money for what it regarded as luxuries. Some gas loans were granted and some were refused —it dependid on the amount of money the Board had at its disposal.