LOCAL BODIES' LOANS.

Dominion, Volume 3, Issue 663, 13 November 1909, Page 6

LOCAL BODIES' LOANS.

,;. INVESTMENT "OF SINKING FUNDS. . ■"ijfeNp^OT^'PAS^'AQAINST'-GdVEßN-■■:!y<';[■_</y<-/-;;rMEm. - .'■;■;':, ■■:■■> .;■.'•■■ : The 'Public.'Petitions'A ix>';M;;.Committee..re-. ■ported tb;.Cie, s House';of day ■ ion'.a.(request: ,pf theyDitnedin,,;Corporation asfihg.7for,.'..repeal of,' or exemption .from, Sec-; tibn 25;;"of- : the -loans■ '.to,. Local"-'Bodies Act, which provides ..that 1 sinking'!-funds' must/be ihyested-in: Government, securities,'even. where there ii-v-nb, Government: guarantee of the. loan, instead; of; .being invested,, as 'formerly,' bysinking fund.' ( cqminifisioners. . j The ■ committee', fe?' ported- that-ithey..-hadino.Weconimendatdori:- to make", and i't.-'.wes 'moved', that - theVpetitibn/ lie on. the'rtable.^.',ii/;.»''.-., .-'•- ~;.•;;> .•■'-''■:.-■■ ■ ■•■-' . .'Mr. :inenrVto£add :: the; Governnieiit' for .favourable , , consideration."

Several speakors, including Mr Maseev, Mr Hemes, and Mr Al'Laren, spoke in favonr of repealing the clmso and giving locil bodies control of th«r own finance / Tho Hon E M'Kenzie said he was satisfied that tho House had no intention of repealing the clause , % Mr Davev said that sinking funds of the Wclhngt-m City Council had been invested in flax lands it an interest of only 2V per cent The Wellington Corporation had also lent .£70,000 to the Karon Borough Council He did not know whether that practice should be encouraged It should also bo considered whether it wae not the duty of local bodies to help the Government Hβ supposed that 4 per cent was the aienge interest that had been obtained from investments of these sinking funds in New 7ealand > Mr Ell (Chnstchurch South) urged that the local bodies were more conservative than tho people as a -whole , Mr GuthriP (Orona) thought that tho local bodies conld well be trusted to invest their sinkin? funds thomsehes All the local bodies m his district were opposed to the clause which took from them control of their sinking funds He would support tho amendment Mr Wright Wellington South, said that tho Wellington City Council had never received less than 4 per cent for its sinking funds Mr Davev saitl he had quoted a statement made m the House lost year by Mr Fisher, M P , who was then a member of tho Wellington Cijy Council The amendment was oarriod by 31 votes to 25 Tho following was the division list Ayes (34) >—Messrs Allen, Baume, Clark, Dive, T Duncan, Fraser, Glover, Gnthne, Hanan, Hardy, Hemes, Hme Tenninga, Lang, Lawry, M'Lareti, .Malcolm, Mander, Massey, Newman, Noswor.thy, Pearce, Phillips, Poole, Rhodes, Russell, Scott, Sidey, T E Taylor, G M Thomson, J C Thomson, Wilford, 'Wnght Noes (35)— Messrs Arnold, Buddo, Carroll. ColVin, Craigie, Davuy, Dillon, Hon. T Duncan, Ell Fisher, Forbes, Fotrids, Graham, Hall, Hogan, Hogg, LMirenson, Macdonald, Hon R MTJenne, Millar, Ngata, Parata, Stillworthy, Steward, Witty r