INTEREST FREE MONEY

Bay of Plenty Beacon, Volume 8, Issue 43, 26 January 1945, Page 5

INTEREST FREE MONEY

COUNTY COUNCIL'S REPRESENTATIONS SUPPORT FOR BROAD SCHEME! At its l meeting last Tuesday the Whakaiane County Council •deckled to support the Waitemata County Council in its efforts to procure interest-fr&fe money for future local government undertakings. The decision led to an interesting discussion between several County Councils.

In its letter, the Waitemata Council forwarded a copy which had been previously sent to the Prime Min- ■ ister. This communication stated that owing to war conditions over the past fife years j road formation and road maintenance had been reduced to a minimum. Such curtailment had resulted in a serious de,terioration and had placed the ratepayers under a severe handicap. The Government had been requested to co-operate by making provision of interest-free . money for essential works and it was felt that it should now exercise the mandate given to it by the electors and issue state credit money for works of national importance. Such money would require to be controlled so as to avoid both inflation and deflation and should be interest free at its source. Ratepayers would thus be saved the tremendous and ever growing burden imposed by the past system of borrowing and Government subsidies. It was suggested that provided the cost of administration was defrayed and adequate sinking funds to repay the capital established, the New Zealand Reserve Bank should advance local bodies interest-free credit to carry out. vitally necessary works. After the Council had made its decision Cr MeCready suggested that the Maunganni County should be contacted and informed of the council's stand. "We owe it to that Council," he said, "because we turned them down last time." The Chairman pointed out that the Council had merely asked Maunganui for further information. Cr MeCready: we're going to be asked by deputation from the Farmers' Union just where we stand in this matter. Cr Wardlaw: What if we ask the farmers just where they stand? Cr MeCready: The general doesn't go to the private and aslt him what he's going to do next week. If we stood by our election pledge we would be standing shoulder to shoulder with Maunganui now. The Chairman: That's all very fine. If one or two had made a stand against hospital taxation in the same way as Maunganui we would all be in the same position as Maunganui is today. Cr MeCready: As long as we leave the fight to one we are powerless. Mr Nash knows that lie has only got to kick out one skinny pigeon at a time. The Chairman: Their action all goes back on to the ratepayers who Have suffered as a result, of the withdrawal of Government subsidies. Cr MeCready: If only we had the backbone we'd be with them. The trouble is our backbone is all wishbone. AVe are scared to strike but we will know all about it soon.