BOROUGH COUNCILS.

Press, Volume LVII, Issue 17107, 31 March 1921, Page 3

BOROUGH COUNCILS.

RICCAKTON.

Tuesday night's meeting of the Riccarton Borough Council was attended bv Councillors George (chairman), A. E. Steere, C. A. Rankin, T. J. Stokes, and H. W. Wiso. Tho Deputy-Chief Inspector of Explosives wrote that the Council was the appointed local body to issue licenses in connexion with the storage of explosives. Xhe Canterbury Progress League forwarded a booklet advertising Canterbury. It was resolved to thank the League, and ask ihat threo dozen copies of the booklet should be forwarded for distribution. The Bank of New Zealand wrote that, as local bodies were responsible to the Income Tax Department for the collection of tax on loan debentures, the bank proposed to deduct 3s 6d in the £1 on all coupons as they became due, and remit to the local body concerned, which could pay direct to the Department.

Councillor George said that those who had invested in local loans bearing, say, 5 per cent, interest, would now, if subject to income tax, h&vo 2s 6d in the £1 deducted. That eeemed a breach of contract.

Councillor Wise asked how local bodies conld borrow money in the future, if the interest were limited to 6i per cent., and 2s 6d in tho £1 of that deducted.

It was agreed to write to the holders of local debentures, explaining the position, and regretting that the deductions had to be made, tho Council having no option in the matter.

Indignation was also expressed that tho tax should bo put on local bodies' loans issued before the introduction of the nontax. \ . It was agreed, further, that/the incoming Council Bhoukl present, or euppdft, a- remit on the subject to the nest Municipal Conference.