LOCAL BODY LOANS

Wanganui Chronicle, Volume 79, Issue 123, 26 May 1936, Page 6

LOCAL BODY LOANS

OPERATIONS OF BOARD MINISTER’S STATEMENT 1 I Per FrtaS Association. ] WELLINGTON, May 25. ( The Minister of Finance (Hon W. * ' ash) has furnished the following in- ; formation regarding the operations of , she Local Government Loans Board for . i iie twelve months ended March 31. i 1936. together with comparative figures ; for the previous years, and a resume of ■ ' lhe conversion operations in connec- 1 tion with the whole of the local body t debt in the Dominion, which are now i practically completed. f The total amount of applications sub- j mitted to the board for general loans t (i.e.. exclusive of conversion schemes) i during the year amounted to £4.235,926, v and of this sum £4.061,076 was repre- c seated by new applications and £174,S5O by the total sums which had previ- < ously been referred back to the local j bodies concerned and again submitted a for reconsideration. The loans sane- I tioned were: Redemption loans, £2,051,- i 790; new loans, £1,550,690; referred } back and declined £633,446. On the t amount of redemption loans sanctioned, j the total figure given takes the place t of the previous debt of £2,196,079. a Since 1927-28 the total applications t amounted to £32,810,434. The amounts • sanctioned were £16,099,550 for new c works and £13,621,034 for redemption t loans. The difference, namely £3,089,- [ 350, represents amounts referred back . d and declined by the board during the c period in question. As £1,625,000 of the amount sanctioned for the renewal e ■>f loans during the year under review j was in respect of two London loans, the f oalance is for renewal loans of previ■»us years. This was brought about largely by conversion operations, e which resulted in arrangements being p made for the complete liquidation of the debt then dealt with within tie , new terms authorised, thus obviaLng f the necessity for renewal ot loans. & In addition to the figures supp Eel t above, a total of £114,181 was dean t with during the year as representing applications in respect of the disposal * of capital moneys and unexpended loan j balances under the provisions of Seetion 20 of the Finance Act, 1934, tnd Section 47 of the Finance Act, 1929. The Minister quoted figures showing the total loan indebtedness of all local authorities in New Zealand since 191.>. when the figure was £24,538,721. It reached the peak in 1931. when it was ■ £72,686.036. and in 1935 stood at £71.•_45.458. The rate of increase amounted greatly in the post-war years, but had ' fallen away since 1927. when the Local Government Loans Board had exercised a steadying influence in the field ci local body finance. , Local body debt conveitible at March x 31, 1935. was £48.456,615. By December 31. 1935. £13,540.169 had been con- 11 'erted and £2,924.241 had been repaid, ! renewed, or excluded, leaving £1,99.’.235 outstanding. Of the 493 lo«: il authorities, 349 had converted their j iabL The remainder had either *Ai | taken action or the amounts were 1 t i small to warrant conversion. Applications are still being received for the conversion. The Local Government Loans Board sonic IS months ago fixed the basic rate at which all local authorities might borrow at 3J per cent, and has maintained this rate to the present time. It would appear that no great difficulty o had been experienced by the 10-’al " authorities in obtaining loan require- ri meats at this rate. The renewed a activity of local bodica within reason *' able bounds will assist the Government 0 in its policy of providing useful employnient for those who arc at prevent ! vnemployed. ;’j