AUCKLAND LOAN.

Waikato Times, Volume 114, Issue 19011, 31 July 1933, Page 8

AUCKLAND LOAN.

REJECTION BY BOARD.

MR COATES’ STATEMENT.

NO INSTRUCTIONS GIVEN.

WELLINGTON, Saturday.

Referring to the Mayor of Auckland’s criticism of the Local Government Loans Board, Mr J. G. Coates, acting Prime Minister, denies that any instructions oame from him regarding the Auckland application, and states that he has no control over the acts and deliberations of the board. Referring to a statement that the Secretary of the Treasury, as chairman of the board, apparently did not want anybody to go on the money market in competition with the Government over the counter sales at 3J per cent.,' Mr Coates said such an assumption was quite wrong. He was informed by the board that such a consideration had obviously no connection with the board’s decision, as the loan had actually been sanctioned. Mr Coates added that inquiries he had made regarding the Auckland City Council’s application indicated that board,

In declining to sanction the loan without a poll of the ratepayers, was affirming the principle It had long held that comprehensive proposals should he proceeded with In a normal manner under the Local Government Loans Act, 1926.

This view coincided with the Gsvernrpent’s views, as witness Hie recent intimation that the Local Authorities Empowering (Relief Unemployment) Act would he allowed to expire on July 31. ! It Is understood locally that most of the works covered by the Auckland application are works which would be undertaken in the normal course of oity development, and it is stated that this no doubt was taken Into consideration by the hoard in declining to sanction the loan as one for the relief of unemploymerft. It is further pointed out that the board comprises seven members, three officers of the publio service and four outside members representative of local body Interests.