DEFAULTING HARBOUR BOARDS.

Taranaki Herald, Volume XL, Issue 9265, 15 December 1891, Page 2

DEFAULTING HARBOUR BOARDS.

j Speaking in reference to tho default of j the New Plymouth and Oiruaru Harbour r Boards, the Premier said to a' deputation j that waited on him in Auckland, that the I Government could not deal with that I matter, as it would mean admitting a , liability. •' The case of the New Plymouth ' T Board is different from that of Oamaru. The New Plymouth Board became default J because it could not help it. It had no , funds, and therefore could not continue to ' pay the interest; but the Oamaru Board, ' on the other hand, has £2700 Q-year of ; rating power which has not boen taxed J yet. It appears to me that tho . Oamaru people are bound to col"sleet" s leet those rites, and if they were , collected there would bo no default* ; They argue that the £100,000 for which they have become default is only a portion \ of their loan. They havo not defuultod upon the first loan of £100,000, the second 1 loan of £50,000, or the loan from tho Government of £30,000; they defaulted on • another loan of £100,000, and they claim that the extra rating power affects only the loans on which they are paying interest, . and cannot be used for the loan of j £100,000, on which they had defaulted. It is a peculiar position altogether. I a«u , not sure but that they could bo made to " Could not the Government appoint a [ receiver ?" I " The Government have no pq\ror to appoint a receiver, because the Board' is paying interest on tho Government loan. | It ia a very peculiar case of default, dif- ( ferent from any other case I have seen. ( There have been three orfou<- defaulting . local bodies, and in each case tho receiver J having been put in has gone out again, bo that the local body concerned arranged , matters, paying 20s in the £. The re- ' ceivorin every case has, been a cure for I default. But the receiver would not be a euro at New Plymouth, because there they ' havo exhausted their rating power. With ', the extension of settlement, however, New Plymouth must pay its way ultimately. The question does arise whether it. would not be a wise step on the part of the f Government to capitalise the loans on | deferred payment land ond perpetual leaao. ' This would remove the default for a time, > and the colony could not lose by it. That matter is now under the consideration of > tho Government." i | | [ , { . i [ '