Protest At "Undemocratic Proposal"

Chronicle (Levin), 12 June 1948, Page 4

Protest At "Undemocratic Proposal"

RecCnt 'diseussioii at the Municipal As'soeiatioii's conference. on local ^body 'finance has drawn a Strong protest from the Wanganui. Eiectors' AsSociation, which wrotei to Wednesday's ineeting of the' Horowhehua County Council seeking its support to a protest agaihst what it described as a. "most Undemocratic proposal- to raise . loans without polls, and against the raising of the rating limit." _ i't-aiscr! asked the council to study its pro- 1 posals for the financing of local bodies by a reserve bank loan at' one per'cent. The two request's made . to the Government by the° Municipal Association obviously resulted • f rom | the unhappy financial pdsition of a eonsi'derable number of local1 bodies in New Zealand, continued the letter from Wanganui, and it seemed inevitable that they must: be given power to colleet a larger voiume of rates, or else thaj they mUst be provided with loan finance at a much lower rate of interest than at present. "Ratepayers are beginning to look askance at new loan proposals because they .fear further inereases in rates, which have alr.eady reached a high level," ; continued the letter. The following were two motions included in the letter, and which were passe'd recently by the Wanganui Eiectors' Association: "That this meeting records its emphatic protest against the action of the Municipal Association conferenee seeking to thwart an eiementary principle of democracy by way of an attempt to have local bodjeS empowered to raise loans without a poll of the people, the aileged safeguard being practically worthless," and "that this meeting objects to the raisirig of the rating limit, as requested of the Government by the Municipal Association, and would urgently recommend the Government to consider the suggestion as expressed in the result of a referendum conducted by the Wanganui Eiectors' Association, that local bodies should get their loan accommodation from the Reserve Bank at one per cent." Commenting on the letter, the chairman, Mr. A. M. Colquhoun, said that it was a matter which I should be referred for consideraition by the Counties' Association m general. There were some local bodies who found the rate in the £1 not sufficient to meet the advanced costs. Tliis -action was taken | accordingly .