DRAINAGE MERGER

Sun (Auckland), Volume I, Issue 167, 5 October 1927, Page 2

DRAINAGE MERGER

FINANCIAL DIFFICULTIES

The defects in the Land* lirs. Acts which prevent a constituted by the union of two wt’ 4 drainage boards from utilising ,I r loans authorised by the defunct bain prior to merging, are to be overe™’ in the case of the Hauraki [ Drainage Board by clauses in the I Legislation Bill, validating the diture incurred since its constttXSl in April last, and empowering ?" raising of the balance of the loans the merged bodies, the Hauraki aas the Horahia Drainage Boards The defects in the Act brought light in this case will now tirobaM. be remedied by an amendment. 7 Application was made to the intern-’ Affairs Department for the and empowering legislation inline diately on receipt of the Supreme Court ruling on the interpretation of toe statute which had been insisted on be the Bank of Ne*v Zealand, to XvlUch loan debentures had i.jen hypothecated! The decision was to the effect the authority of merged drains*, boards did not pass to their snccaiao' as in the case of other local bodies for the merging of whicn there was anitfe legislation. Following on tine application retiresentations were made last week by Mr. E. L. Walton, solicitor to the board assisted by the local M.P.’s, Messrs! A. M. Samuel and X W. Rhodes. T he reply just received does not give an indication as to when the Bill will come before Parliament The money is urgently required by the board which has advanced funds from Its general account for loan work contracts taken over from the late boards A number of works whbuh can only be done in the dry weather are being held up to the serious embarrassment of the comprehensive scheme. There is a chance that the bank will now advance the money, seeing that the legislation is in sight.