Wairarapa Standard Published Tri-weekly, Price 1d. MONDAY, JUNE 21, 1886. Local Bodies and Loans.

Wairarapa Standard, Volume XIX, Issue 1847, 21 June 1886, Page 2

Wairarapa Standard Published Tri-weekly, Price Id. MONDAY, JUNE 21, 1886. Local Bodies and Loans.

Two important measures 'recently passed their second reading in Parliament, which possesses considerable interest to many of our readers. The first of these measures is “ The Local Bodies Finance Act.” Itjproyides that County Councils, Boad Boards aud other local authorities having power-to levy rates, may raise loans under the Act for public works or undertakings, including the erection of school buildings, the loans to be secured on a special rate to be levied for securing payment of interest and sinking fund, except where the charges on such loans can be paid out of the revenues derivable frem such public work or undertaking ; or if such charges can be paid out of the ordinary revenue of the district. Secuiity may be given wholly or in part on public works and revenues derived therefrom. The provisions applying to raising a loan in a district are to apply to a part of the district. One loan may be raised for two or more purposes, or two or more local bodies may unite to raise one loan, the appointment of such loan to be decided by the joint authorities. Notice of intention to raise a loan is to be duly published, and a poll is to be taken ; three fifths of the total number of votes to be polled in order to carry the proposals. Loans may be raised without a poll (1) to repay liabilities or overdraft existing at the time the Act cornea into force in a district, incurred for any purpose for which a loan may be raised; (2) to pay off or consolidate any loans heretofore raised and secured upon special Qites ; (3) for further sums which the local authority may be empowered to raise under any Act which authorises the same to be raised without a poll; (4) where a local authority has been authorised under any Act to raise money by way of loan for a public work upon the security of a public rate and a portion of such loan yet remains to be raised. The first year’s interest may be paid out of loan. Special rates may be made as security for interest, and every special rate is to be an annually recurring one, and the late is, if necessary, to be caloalated to yield 10 per cent more than the estimated charges in respect of the loan, but the proportion in which such rate may be levied shall not exceed what is sufficient to pay annual aud other charges. It has to be noted that the Act is permissive. The clauses on this point run as follows “ This Act shall only be in force in a district when its provisions are adopted by the local authoity by special order, and until such special order takes effect it shall bare no operation in such district. A local authority may either adopt the Act generally, or may limit its operation to a particular loan or loans to be mentioned in the special order.” Closely connected with the foregoing Act, the provisions of which have just been noted, is, " The Government Loans to Local Bodies Act.” Part first of the Act provides

How Loans are to be made to Local Authorities.

Local bodies ate empowered under this Act to raise loans, but before granting any loan the Treasurer is to ba satisfied that the Act has been complied with. A loan.may be secured partly on a public work or endowments, or endowments and a special rate, but the latter is to represent one ball the annual liability for loan. The Treasurer may enter into agreements with any local authorities to make a loan, or to mike advances of sums on account of such loan, all such advances bearing interest at the rate of 4 per cent, until the 31st January ensuing, when debentures are to be given by the local authority. The Treasurer is to give notice of dates when applications for loans will be considered, and applications in case of extraordinary damage, or to carry out the prior agreements, ate to have piiority. The Treasurer may refuse to grant loans on the ground that the applicants have not complied with the Act, that there is no money avail* able, or that the security is insufficient.” Tart second of the Act provides for— J'hb Inscription of the Debts of Local Authorities.

The Treasurer may open an inscription register in the Treasury for debts of local authorities, and give notice to the said authorities that he intends to inscribe such debts, and they are to have the same liabili. ties as insciibed debts as if debentures had been issued. Debts under the Loads and Bridges Construction Act due from local authorities and secured by debentures held or which may be held by the Government, may be inscribed under the Act. Part third of the Act provides— How Funds are to be Provided by the Colonial Treasurer.

The House of Representatives is to decide what sum shall be available in each year for the purposes of the Act, and if no resolution is passed the Treatuier may make loans up to £200,000 in each year. The Treasurer may then (1) borrow such money from the Public Account or from any fund on such account under the Treasurer’s control; (2) borrow from one or more funds partly pt wholly ; (3) as security he may give scrip in the form prescribed by the Governor-in-Council, with agreement to redeem on receiving debentures from local bodies ; (4) may sell such debentures iu any way he please ; (5) borrow on their security, and (6) may issue fresh debentures. The Governor may empower the Treasurer to borrow moneys authorised to be lent under the Act from the PostmasterGeneral, Public Trustee, aud the Commissioners of the Public Debt Sinking Fund, the Governor to determine the manner of security and repayment of such funds, interest, form, terms, and conditions of scrip debentures and other security. A sinking fund is to be created under the control of the Commissioners of the Public Debt Sinking Funds, such fund to consist of the annual appropriation of the General Assembly up to 2 per cent on the amount of the debentures of local bodies, payments to be made to the sinking fund for 26 years, the first payment to be within twelve months of the issue of the debentures. This fund is to he under the Commissioners in the same way as other sinking funds. The Treasurer is to ley an annual report before the Assembly. We have not yet had time to consider carefully the provisions of those two important measures, end the nature of the machinery for carrying them out iu practice. These Bills will bn carefully considered in Committee and some '.modifications made in them before they oome up for their third readings. Everyone properly acquainted with the working of the Local Government system knows '-** - well that the previously existing •* *?*!'■■■' ... ~ a- long as Buffimachinery did well enougu ....

oient money was available to carry out what waa required to be done in the way of Public Works and other things. Money was " the one thing needful ” for the Local Governing Bodies. The Hoads and Bridges Construction Act did well enough so long as the money ww forthcoming to carry out public works

under its provisions. Hut when the moi,ewas exhausted then the Act itself was of little good. Possibly tluee new Acts, gi.iog local bodies the power to raise loans, and the General Government the power to find the money—up to certain limits—may servo the purpose o! keeping the local Government system iu useful operation and doing practical work.