Wairarapa Standard Published Tri-weekly, Price 1d. FRIDAY, JANUARY 29, 1886. The Government and the Local Bodies.

Wairarapa Standard, Volume XIX, Issue 1788, 29 January 1886, Page 2

Wairarapa Standard Published Tri-weekly, Price Id. FRIDAY, JANUARY 29, 1886. The Government and the Local Bodies.

Thu members of the Ministry have been feeling the public pulse with the view of finding out what sort of financial arrangements with respect to Local Bodies would prove acceptable. It will be remembered that during last session of Parliament the Uovernment brought forward “ The Local Bodies Finance and Powers Bill.” By this measure it was proposed that subsidies should be assured to the Local Bodies for twenty five years, and that they should have the power to borrow on the security of those subsidies. The House rejected this proposal, and otherwise so cut the Bill to pieces that only a very few of its clauses were passed. Provision was, however, made for the Local Bodies to obtain subsidies for a time, while it wss understood that the Government would prepare some new proposals on the question during the recess. Time has passed and the Government appear still undecided as to what means shall be adopted to give the Local Bodies “an assured system of finance." Mr Stout, the Premier, in his speech at Dunedin referred to some plan of the General Government raising a loan for the purpose of helping the Local Bodies. Mr Ballance, at Wanganai, told his constituents that the subsidies to the Local Bodies would probably be discontinued, but did not say positively what was to be given in their stead. He, however, hinted in a general way at some borrowing scheme, out of which it may be presumed, the Local Bodies would get some pecuniary aid. But Mr Larnaoh, another member of the Ministry, was decidedly more explicit when addressing his constituents at Dunedin South. Mr Larnaoh said : “With respect to borrowing, there were one or two things which when the time came to borrow money he would like to see done. He would support borrowing a million for the special purpose of advancing to agriculturists and farmers at 5 per cent. He had long felt, and especially in these bad times, when the price of produce was so low, that what the hard working settler had to contend against was the high rates of interest be had to pay ; and for that reason he thought it a legitimate thing for the State, by way of experiment, to borrow £1,000,000 at 4 per cent, which it conld do, with the view of lending it out to farmers—safely of course—at 5 per cent. He thought, also, the State might borrow £1,000,000 to lend to counties and road boards on the same teems, in order that they might be able to give such assistance and to make such improvements as were desirable. This was the only way we should get local government, and instruct the people in governing themselves. Why should a county or a road board have to run to the State for a little money to make this or that road ? The State could go into the market and borrow at 4 per cent ; it would cover them from any lose to lend it out at five pur cent, and why should it not be so ? Why should local bodies be forced to go into the open market and pay heavy interest, and why should hardworking settlers have to pay usurious rates f They would therefore understand that if such a scheme as this came up—he did not say any of his colleagues would agree with him—that he should be disposed to support and promulgate it as much as possible.” Now. although Mr Larnaoh referred to this proposal of borrowing a million for the purpose of lending it to the Local Bodies as being an idea of bis own, and not one of the Government, yet those behind the scenes knew perfectly well that what the bon gentleman said was simply put forth ns a sort of "feeler ” to see how the public would take the suggestion. It is quite certain that Mr Larnach s speech was inspired by Sir Julius Vogel, and consequently be was really shadowing forth the idena ami intentions of the Government. Of course if this proposal with respect to the Local Bodies is not favorably viewed by the people, then the Government will disavow it, and say that in making it Mr Larnach was only stating his individual views. On the other hand, should the proposal meet with approval, the Government will adopt it as a part of their policy. At present Ministers do not appear to have made up, what they are pleased to call, their minds, as to wiiat course they will adopt with respect to the Local Bodies. One thing, however, is quite clear. The Ministry contemplate lots of borrowing and railing as big a loan as Parliament may be induced to sanction. The idea is to raise s big loan for geotral purposes, and then probably to have some special loans for various other things, such as lending money to farmers and also to Local Bodies. There are certainly more big loans looming up in the future, thould Vogel and Go remain in power and have their own way.