LOCAL BODIES' LOANS.

Dominion, Volume 3, Issue 654, 3 November 1909, Page 7

LOCAL BODIES' LOANS.

GOVERNMENT'S NEW SCHEME. -J objections to paying sinking :fpnp;: ; PKIMB.MINISTER STANDS PAST.- j An important, aspect of' tho provision's! '01-.- '. the ; State-Guaranteed : Advances' Bill V-in regard to the loans to local bodies '.wto. discussed -yesterday at ;afc Prime' Minister -and : a deputation representing'.a niimber-of local bodies in the' Wellington :dis'trict.', Mr.i.T. M; ■■ Wilford,M.P.,,introduced tho/deputation,' and there were also", present Messrs. /W, % Massey; (Leader of',tlie'.iUpposK tion);. IV M. • ¥$■■ E. Baume, W.'.D,v S. MiacDonald,■:and: G,'. J.' Anderson,:and tho Hon. A. E. Guinness, M.P.'s. , The deputation 'comprised! Mr. -J.; Q. Harkness ,(llayor. of Onslow),' Mr; Bunny, .(Mayovuof. , !pow6r. Hutt), , M'Ewan.- (Mayor. of Peiaue), and Mr.iKempthqrne (Hutt County-' Council),- , ■ Mr; Wilfprd ,'said' that undor- tlio- present system. a -ibbroublv, or J .-. county ■- - council;. • (jimld ■ borrow.' under;;three-'-.terens-. of, r - ! rep'ayme'ni;! Of' both, principal -and interest,' viz., 20 at '41 ! per ccnt., : 32,' years . at,:' 4 iper; 'cent;,'', of '-.i!' years at. 8J per' tent v , Tiib whole liability, wae ostingxiished .at>:tho. end^f: ihospktflrms; , the. noeessavy'.fiinkiiig fund,sJbpins 5 prp'vided'by tho ;;Government; : 'Burii)g"thb',yeif i ,, '.ra07% ' tho' ■ Govorriment.';'contributitins > .{o'-'theso-"sinking': i' : funds.araountqd,to .nearly £40,000..: Undor.the' netfvßill, 1 , hbffoyer,' it EpDmed; tlmt the local bodies, in addition to. pdyins:tho 3J per cent, interest, must also provklo- a sinliing "ftirid'^of :at.least one per.cenc;.for 36 J years, when.tho loan would extinguished, i Tims '■ for;. that term .'tho. , .- local ':bodies;! would ; pay •4J • a'e against 31 per cent. ,for ii years as at present, Mio'bttect of;the.Bill,-it .eceined, would bo, to ■tfavo-thfl Consolidated Pand at tho expense?of the'locakbodies; •/:-,.■;. .- ■' - ~;■>; i>-:,,..-, ■*

Sir Ward: iWhich, local''.bP'dics arc you speaking of? -. ..." • ■:• ■■ ■■ •■ .• ■■',.■', : .'Mr. WilfordV'Tho Hutt bodiesr ■ ■■.'■ ■:/,-\''l^. SirJpseuh Ward:. Not, the bodies' ; of the whole of Now, Zealand? '■ ■ ',-,;';;■:::,:.-;;■ , ;I Mr.-Wilford:-Nd. '.-; :-A\:\ -:■';-■;:;.:,; >.;Vvv;a

■; ;- i; ': All local Bodies Affcdod. ; : - : ' ■ :Mr.. Bunny'snid'.that the position- affecteoV. all :'.'tho,-local .bodies''.in. tho Dominion. ..The 'question was.'-, whether, the local• bodies were>ta bo depriyed.'of-.the''beneficent system tbattbej j had/ enjoyed since 168 d..; The ■ j.: Lower ' ; Hutt ! Borough. Council' hlid; arranged ;for 'a .loan: of under tho' present system at, 3i per Cent, I That 1 would not'bVaffocUp.'.but lie was thinking of the future., Under the new system the local authorities wpultl , have'- to pavia'all about.s.psr cent'., ;.aM/they,would, also .lose the present- advantage of-being "able-to' raises an : addit:onal i ton per : cent, of a\ loan without a pO)l. ■:.'•■■;■,.■'■'■l.,;..'.. '.••;■'....; ■'. ;■.-■ ■,-.■'.::. ...■.;■ ■'. .'.'.- ; j.Mr.. Wilfbrd also referred to the question of harbour. boards. In tho interpretation clause of-:the now Bill, "district" /inpliided "harbour .district, r but , - "local. bodies".: were defined as meaning only bodios empowered to', raise rates.- ..;, The Prirnis IVttniatcr'a- Ropiy^ :'.'-:, : ',' .', ■ -Sir Joseph Ward said that it was proposed to repeal the present system altogether. There was not theslightest.intention bii the part of,the Government,to' extend tliu -present practice.of paying- thesinking;funds to the largo -system , ' which it was proposed to inaugurate, and which would run-into ;perhaps ten or fifteen millions m.tho cojnrSo of a lev,years. Tl>d deputation could hardly : . bo aware' of tho large amount of monfcy that had been asked for by'the local bodies during the past eighteen' months or. two yoars. Tho Government had probably had up.plications,amounting to half a' million in excess of ths limited -sum- .that . they* had authority to lend. One local authority in tho North Island, was at present' wanting. J52.000, and could not'move without;it.■■-."lt'was suggested that because .the. Government provided, the einking funds'in the present minor schomo it : should Tie extended ■. to the, larger:' scheme. It would be -madhess-to attempt anything of the land..,-If -.a-local/body, got its money.' at 3j per cent, urider the new sohonie, and was hotprepared to pay a'sinking.furid'in addition, ,it ought to do without the money altogether, In .some cases or £W,m .was -asked for, for drainage, but this could not be pbtaincfl under the present system: Tho Suit Council had done vory well to get its 410,000. .IfHho.HoußO did.not want the new -scheme, all that it had to do was to .-Bay so. He did hot Intend to apply the present system . of sinking funds in regard to the larger Bchoine. ..':.- Further DUcusslon, ' - : Quiuness: You intend to give a guarantee instead of tho.contribution?"--. . - ■-.; -.- Sir Joseph Ward; That is so. , ' ,, ■.' : '-"n vllr. Massey expressed a doubt as to whether tho money would always bßobtainable at 31inecent^-', - .■.■--"-.■.■■''". A ;■■ 'i.•■'■-«. > ', 'Sir Joseph Ward:.Th6re may .be.timos when wo cannot get it at that rate, but at such times will stand off the market.- I look forward, however, to being able to got money as low asvthroe per cent," . ' -.'•- , " ; I' ,, lit. Massey. Not yet! -Ho added that under ; the now scheme the local'b6dios ; in the'outi districts would bo placed*in i 'a yrorse"position, than at present,' : ■'.■■: ;>i ; > ■■'■ •'■ -■■ - : .- ; - ;■' Sir.Joseph Ward, in'replying to Mr. Wil. fords remark , harbour boards; said that those bodios could not-he' included in the soheme at present.. So,mo of tho,boards .wanted to borrow a millisn in one loan, and it would be dhngerous for tho Goverhinorit tb give them ltS guaraiiteß without any security in regard to'rates..: ; ,; : ■-'' ■'.'■•' '"- "' ■'-. '"-"-'■ •';-i-