NEW ZEALAND STATE – GUARANTEED ADVANCES ACT AND LOANS TO LOCAL BODIES ACT (LOANS OWING BY LOCAL BODIES UNDER).

Appendix to the Journals of the House of Representatives, 1912 Session II, B-13h

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Session 11. 1912. NEW ZEALAND.

NEW ZEALAND STATE - GUARANTEED ADVANCES ACT AND LOANS TO LOCAL BODIES ACT (LOANS OWING BY LOCAL BODIES UNDER).

Return to an Order of the House of Representatives dated the 10th October, 1912. Ordered, "That there be laid before this House a return showing separately - (1) The amount of loans owing by River Boards, Drainage Boards, Harbour Boards, County Councils, Town Boards, Road Boards, and Borough Councils on the Ist March, 1910; (2) the amounts from the Ist March, 1910, that have been lent to River Boards, Drainage Beards, Harbour Boards, County Councils, Town Boards, Road Boards, and Borough Councils ; (3) the security in each instance for the loans advanced."—(Right Hon. Sir J. G. Wabd.)

Betukn showing—(l) The Amount of Loans owing by Eiver Boards, Drainage Boards, Harbour Boards, County Councils, Town Boards, Eoad Boards, and Borough Councils on the Ist March, 1910 ; (2) the Amounts from the Ist March, 1910, that have been lent to Eiver Boards, Drainage Boards, Harbour Boards, County Councils, Town Boards, Eoad Boards, and Borough Councils ; (3) the Security in each instance for the Loans advanced. /. Under Local Bodies' Loans Act, 1908. — Up to the Ist March, 1910. s, s. a. Eiver Boards ... ... ... ... ... 76,545 10 8 Drainage Boards ... ... ... ... ... 84,770 1 1 Harbour Boards ... ... ... ... ... 1,338 17 10 County Councils ... ... ... ... ... 1,662,892 15 4 Town Boards j ... ... ... ... ... 27,148 16 4 Eoad Boards ... ... ... ... ... 250,723 16 4 Borough Councils ... ... ... ... ... 746,256 0 2 £2,849,675 17 9 The amounts above shown are the total of those inscribed against the various local bodies as at the Ist March, 1910. Any loan raised during any year was inscribed against the local body on the Ist February following. A certain number of half-yearly instalments of interest from the date of such inscription would extinguish the liability of the local body in respect of that particular loan. This number depended on the currency at which the loan was raised—viz., forty-one, thirty-two, or twenty-six years. Loans have been inscribed from 1886, and payments have been regularly made since that period. In forty-one years from the date of the last inscription the total debt will be extinguished. 2. Under New Zealand Stale-guaranteed Advances Act, 1909. — Since the Ist March, 1910, and to the 19th October, 1912. Amounts finally Amounts actually approved. paia. £ £ Eiver Boards ... ... ... ... 2,830 2,330 Drainage Boards ... ... ... ... 48,650 46,510 Harbour Boards ... ... ... 123,750 45,750 County Councils ... ... ... ... 665,430 425,820 Town Boards ... ... ... ... 116,145 76,205 Eoad Boards ... ... ... ... 211,300 158,410 Borough Councils ... ... ... ... 1,026,7.40 812,040 £2,194,845 £1,567,065

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3. Under both Acts. The security in each case is a special rate sufficient to meet the annual charges on account of each loan. Under the New Zealand State-guaranteed Advances Act, 1909, in addition to the main security of a special rate the Advances Board has also required a collateral security in those cases in which the loan-money was granted for revenue-producing works. There are not many of these—there being only twelve instances. The following are the instances above referred to, and the collateral security in each such case : —

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Nn.tnro of flnllo.tflra.1 fiftn,nrit,v. iNature ot collateral security. Nature of Collateral Security. Eoad Board— Otahuhu, £15,000 loan and 10 per cent, additional loan of £1,500 Town Boards— Frankton, £10,000 Johnsonville, £3,500 Otane, £1,500 A mortgage or charge over the undertaking, works, and the revenue therefrom, less working-expenses, and also all the revenues of the said Board. A mortgage over the proposed works. it a A security over the plant and a right of access over the site included. Harbour Boards— Hokitika, £25,000 The revenue to be derived from an export duty, not exceeding 2s. 6d. per 1,000 superficial feet, on timber to be exported from Hokitika. The revenue from the port and leases to be assigned as additional security. Wairoa, £78,000 ... Borough Councils— Cambridge, £3,800 Eltham, £10,000 loan and 10 per cent, additional loan of £1,000 Greytown, £6,000 Mortgage to be given over the gasworks. The proposed undertaking, works, and plant; the revenues and profits thereof are also accepted as collateral security. Mortgage over gasworks to be given in addition to the special rate, Milton, £2,800 ... Mortgage to be given over the gasworks in addition to the special rate. Ditto. Queenstown, £1,250 Sumner, £10,000 ...