LOANS TO LOCAL BODIES.

Wanganui Chronicle, Volume LXXVI, Issue 18071, 8 January 1921, Page 5

LOANS TO LOCAL BODIES.

The Prime Minister has slated that the authority taken by the Government to modify the conditions on which local bodies might borrow money is being used with discrimination. Already permission to alter the terms of the rate have been granted to the Wellington City Council and Auckland Harbour Board for works of ar urgent nature. The Prime Minister said that local bodies were not now so anxious as they had been to borrow. It appeared that they were realising they would not be wise to undertake at once works which could wait for a while till the position of labour and machinery improved. It was pleasing to note this, as it would not have been to the advantage of the country that the various local bodies should all be’ trying to carry out big programmes ot works at the same time. Asked if permission had been granted the local bodies mentioned to increase the rate of interest, and if so, to what’ figure, Mr Massey replied that it is impossible to state the exact, figure. Conditions vary so much, and each application is taken strictly on its merit. Most careful consideration had been given to applications of an urgent nature.