LOCAL BODY LOANS

Waikato Times, Volume 119, Issue 19894, 25 May 1936, Page 6

LOCAL BODY LOANS

DEBT C 01“ ERSION. FINANOE MINISTER'S STATEMENT OPERATIONS REVIEWED. ! (By Telegraph—Press Association.) \\'ELLINGTON. Monday. The Minister 01‘ Finance. the lion. )Y. Nash. has furnished the follow-in: Information regarding the operations of the Local Government Loans Board for the 12 months ended March 31. 1936. together with comparative fig—ures for the previous year and a re—sume oi' the conversion operations in connection with the whole of the local‘ body debt in the Dominion, which are now practically completed. ‘ The total amount of applications submitted to the board for general loans (i.e.. exclusive or convervsion schemes) during the year amounted to “235.926. and of this sum “361.076 was represented by new applications. and £174,850 by the total 01' sums which previously had been referred back to the local bodies conv cerned and again submitted for re—consideration. Sanctioned Loon. 'l‘hc loans sanctioned were: Redemption loans. £2,031.790; new loans. £1,530,690: referred back and dc—ciincd. 356311.116. 01‘ the amount or rcdcniption loans sanctioncd the total figure given takes the place or the previous debt 01‘ £2.19t‘..079. Since 1027-28 the total applications amounted to £32.310Ji3-i. The amounts sanctioned were £16,099.550 for new works and “3,621.03; for redemption loans. The difference. namely. 533.089.8210. represents the amounts referred back and declined by the board during the period in question. As £1,625,000 of the amount sanctioned for renewal loans during the year review was in respect of two London loans the balance of renewal loans for all other local bodies totalled only “26.790. which was a marked reduction on the re—newal loans of the previous years. Thl's was brought about largely by the conversion operations, which resulted in arrangements being made for the complete liquidation of debt then dealt with within the new terms authorised. thus obviating the necessity for renewal loans. In addition to the figures supplied above. a total of £114.181 was dealt with during the year as representing applications in respect to the disposal of capital moneys and unexpented loan balances under the provisions of section ‘2O of the Finance Act. 1925 i. and section 317. of the Finance Act. 1029. Aggregate Indebtedness. The Minister quoted figures showing the total loan indebtedness of all local authorities in New Zealand since 1915. when the flaurc was 924.538. 721. It reached the peak in 1931. when it was Hausaogo. and in 1935 stood at £71.?-i.3,»i.’15. The rate of increase mounted art-ally in the postwar wars. but had fallen away since 1927. \\hcn tho Local Gavcrnmcnt Loans llom-rl had cxcrcisorl a stcady—in): inilur‘ncc in thc ilchl ol‘ lucul body finance. Local body dehi convertible at .\larch .'H. 1933. was £iß.i.’vfi.filfi. “.‘l' DPt‘ember ."ti. i 935. £l:i,.'ilo.lt‘.li had been converted and {2.921.211 had been repaid~ cont-wed or excluded. leaving 531.992.235 outstanding. of 493 local authorities 34‘.) had converted their debt; the remainder had either not taken action or the amounts were too small to warrant conversion. Rate of Interest. Applications are still being received from conversion. and the Local Government Loans Board some 18 months ago fixed the basic rate at which all local authorities might borrow at 3.1 per cent. and has maintained this rate to the prPSent time. it would appear 'that. no great dimculty had been cxperiencel by local authorities in ohtuiniln: their loan requirements at this rain. Renewed activity of local bodies within reasonable bounds will assist. the Government In Its policy of providing useful employment for those who at. present. are unemployed.