ELTHAM COUNTY LOANS

Taranaki Daily News, 15 July 1935, Page 6

ELTHAM COUNTY LOANS

CONVERSION PROPOSALS ELTHAM RIDING OBJECTIONS. SPECIAL AREAS NOT ALLOWED. The objections of a number of Eltham riding ratepayers to being included in a general loan conversion scheme of the Eltham County were dealt with in a letter from the Local Government Loans Board received by the Eltham County Council on Saturday. The letter stated that the difficulty facing the council had been fully considered and it was regretted that there was only one way the wishes of the one riding could be met. This was by excluding the loans raised in that riding from any conversion scheme. This appeared to be regrettable as the position of the other ridings could be met by the levying of a uniform rate over each riding to provide for the annual charges on a conversion loan. The letter stated that the council had given no indication that it had any concrete proposal for loan conversion under discussion, and if so the amount of rates to be levied as security for the conversion loan must be largely a matter of conjecture based upon the present annual loan charges. It might be found that the existing loan debt could be converted on a basis of a substantial reduction in the present loan charges, and if so there might be very little alteration in the incidence of rates within the various ridings.

In reply to the council’s inquiry whether defined special rating areas could be deemed legal subdivisions under the Loans Conversion Act the letter stated there was no authority for a consolidated loan conversion with a uniform rate over four ridings and in the fifth riding to levy a rate over the present special rating areas. The Loans Board suggested that if the council was not able to carry through the conversion scheme either on /the basis of a uniform rate over the whole county or a differential rate over the various legal subdivisions, the loans raised in the fifth riding be excluded altogether from the benefits cf conversion and that separate conversion loans be raised in each of the other four ridings, the loans to be secured by means of a uniform rate over each riding 1 . The Treasury would be prepared to assist the council to c.ome to a decision by formulating a conversion scheme for the council’s consideration. After a brief discussion the council deferred the matter until next meeting.