LOCAL GOVERNMENT FINANCE.

Ashburton Guardian, Volume V, Issue 1268, 19 June 1886, Page 2

LOCAL GOVERNMENT FINANCE.

[From the Mail.]

The Government are to be congratulated upon having brought down proposals which will greatly facilitate the finance of local bodies, and which go far to solve the most difficult branch of the local government problem. Their “ Local Bodies Loan Bill” consolidates and focuses the provisions relating to borrowing now scattered up and down the Statute Book, in various parts or sections of various Acts and Ordinances. It enables County Councils, Road Boards, and Municipalities, et hoc genus »mne t to see at a glance the limits of their powers and privileges, while the twin measure, “ The Government loans to Local Bodies Bill,” enables the attainment of loans for public purposes at far cheaper rates than have ever hitherto been possible. Under this Bill, which has been greeted with approval on all sides of the House, money may be lent by the Colonial Treasurer for the construction, renewal, or extension of roads, bridges, tramways, irrigation works, drainage works, wharves and public school buildings, to any local authority duly empowered to raise money for such purpose or purposes, either in one sum or in instalments spread over successive years. Advances may also be given on account of any loan agreed to be made, such advances bearing interest at the rate of 4 per cent, per annum. On the first sum of the loan being paid over, the local body borrowing is to give to the Treasurer debentures of 26 years currency, bearing interest at the rate of 5 per cent., or the debt may be inscribed without issue of debentures. The amount of the debt is to be extinguished by the payment of an annual sinking fund of 2 per cent, of moneys to be annually voted by liament for that purpose. The cost of I money borrowed by the local bodies for public works will thus be 5 per cent, per annum, including the repayment of the principal sum. These terms are distinctly more favorable than any hitherto offered, and will greatly I facilitate the carrying out of local public works. Parliament is to fix from 1 year to year the total sum which is to be spent by local authorities, but failing the passing of a resolution in that behalf, then the maximum for the year is to be In the event of the applications to borrow aggregating a larger sum than this, then the various applications are to be granted pro rata , subject, however, to precedence in respect of loans required to meet cases of “ extraordinary damage,” as when a public work has

, been destroyed by flood, tempest, or accident. Provided that the applicants comply with the terms of the Act, and show sufficient security, allocation 'may be refused, save only on the ground of there being insufficient available funds at the Treasurer’s disposal. Loans may be secured partly on a public work or endowment and partly on a special rate, or wholly upon the special rate, it being provided that in every case the special rate shall represent at least one

accident.

half of the annual liability of the-local

authority in respect to loan. All the details of the Bill to give effect to these

cardinal principles appear to be very carefully worked out, and the measure

promises to be an exceed ngly useful

and satisfactory one. *