LOCAL BODIES

Southland Times, Issue 22076, 25 July 1933, Page 7

LOCAL BODIES

RAISING OF LOANS CONSENT OF RATEPAYERS LEGISLATION TO EXPIRE (Per United Press Association.) Wellington, July 24. An announcement that it was not the intention of the Government to renew the legislation authorizing local bodies to raise loans without the consent of ratepayers was made to-day by the Minister of Finance, the Hon. J. G. Coates. After recalling the legislation enacted in 1926, Mr Coates explained that at that time it was intended only as a temporary measure to tide over the initial stages of unemployment -which no one at that time thought would extend over a long period of years. Incidentally, in 1926 there was no unemployment taxation and the relief which was then given was by means of acceleration of the public works authority to borrow without taking a poll of ratepayers. Part of the plan then conceived was to speed up public works and thereby create employment. The Government felt that the time had arrived when local authorities should consult the ratepayers in connection ■with any proposals to raise further loan moneys, for in the long run it was the ratepayer who must meet special rates which have to be struck as security for loans raised. The Minister said the fact that it was not intended to renew the legislation did not mean that the normal developmental work of local authorities would be affected.