NO LOAN MONEY FOR LOCAL BODIES.

Timaru Herald, Volume CXLVI, Issue 21324, 19 April 1939, Page 6

NO LOAN MONEY FOR LOCAL BODIES.

Local governing bodies throughout New Zealand are obviously finding themselves up against some serious impediments in securing adequate finance to carry through programmes of development. The Dunedin City Council is the latest civic authority to find itself in difficulties. The ratepayers have sanctioned loans for city improvements and the development of community services, but the money is not available. The hampering factor is, of course, the low rate of interest permitted by the Government. It is not suggested by any of the local bodies in need of funds for development, that the market is really bare of money. What is declared, with considerable vigour, is that the inducement offered investors, by way of interest, is not sufficient. Hence the scarcity of loan money for local body developments and services. Manifestly the problem is not as easy of solution as it appears, because after all the raising of the interest rate for local body borrowing would of course force up the rate paid elsewhere; particularly in the Post Office, where the trend at the moment is creating an adverse balance of withdrawals over deposits. Nevertheless, the difficulties confronting local governing bodies in need of funds for the implementation of their approved programmes, are very real, and any assistance that might be given them would be warmly appreciated by the council and the citizens they serve.