BORROWING

Dominion, Volume 3, Issue 626, 1 October 1909, Page 8

BORROWING

PREMIER OBTAINS £1,000,000. MONEYFOR LOCAL BODIES . ■ PROPOSED LEGISLATION. (By Telograph-Preas Association ) • 1 Auckland) September 30. "In: London," said thol'reniier, on beinsinterviewed, -obtained a million, of money and had it sent oui:to New Zealand. '/ .£500,000 of this amount'is for the Advances to ..Settles Department, and . XSOO.OOO for public works. [This- money -.was'Jbbtained without the assistanM of f Government bankers in' London, and I am very 'glad' to be able to say - that our financial • position ' there stands' as strong as ever.:' • "I also laid the basis for obtaining, in London all the money : required, by local public Bodies'.in - New Zealand' at the rate of . about 3i per cent.'. These sums, however, will only be obtainable in amounts of £100,000 and over, and, for that legislation ..of a special nature will be. required. . Suoh legislation will be covmd,iy' : pro'}iosals whibh'l'intend to submit to' Parliament - durinig tie. .coming session. It will enable tho grouping of local public - bodies' requirements' so as'to have loans for each included in :ona big sum, which can be' floated in London' .'at- the • rate. I have■ -.mentioned. When-this is made possible, by! legislation, we will have no difficulty in obtaining all the money we may: require, at a low - rate of interest, in the Old Country. If existing legislation" had. permitted .grouping into amounts of .£IOO,OOO or . more, ■ I could have obtained while in London another ,£500,000 or £1,000,000, and sent it out at once. As soon as Parliament meets, arrangements,/will be made.to get the necessary legislation through. I want to make it'.'clear, however, that public bodies will not be encouraged .to go in for,.wholesale borrow-, ing;. where.money is obtained it must be for legitimate, purposes.' . It.will be necessary-that this should "be 'thoroughly understood if my proposals are-to-be, satisfactorily arranged and the work carried, out from/year ,to y?ar as ciioumstanceS require.". ,■ ■ • .