LOCAL BODIES LOANS.

Dominion, Volume 5, Issue 1449, 25 May 1912, Page 4

LOCAL BODIES LOANS.

--——■« —. —- FINANCE- MINISTEII'S STATEMENT, A deputation consisting of Messrs. A, ■b. JUii (president of tlic Counties' Aesaciation), Jl. J, sbdc (chairman of the ilobson County Council), J. Brown (choirman I'aninaki County Council), \V. Hathawity ichiiirmnu Stratford Countv Coiiiic>!) and ,!. T. Quin (chairman' EHliain County Council), waited upon the Minister I ordinance ithe lion. A. it. iiycrs! y«s> turuay aliorncun to lay botore him their iiesiru i«r increased facilities for borrowing uy local bodies through the State (iiiaranteed Advances OSice. , Mr. Jnll said tiic counties were suffer. . mi'.lrom inamlity to complete the road ' wonts they required, because the Departpicnt omy allowed advances up to I'SOGO to any one local authority. They would like to know whether there was anv hope oi that limit being raised, or whether it would bo further induced. There were many local bomes in tho rural district* wnoso activities, though not so wide as those oi the cities, were of more immediate importance to the country in the way of opening up lands for settlement and enabling tho settlers to market their pro. duce. Therefore, if there was any hops be trusted that the first ray of it would shine on the county local bodies. The Minister raid it was quite natural that they should desire some definite indication in regard to future borrowings. Hβ found that owing ic the numerous applications for advances it was necessary (a say "Halt," and review the whole position, and it was decided that only applications up to .£SOOO should have consideration. He found that no less than four million sterling had been lent to local bodies since the inception of th« original Act, and since the present svstem of charging interest and sinking fund came into force two years ago, the sum of .£2,324,',i;C had been loaned or promised. Such large figures made it apparent that no Government could grant loans to every applicant, and though the majority of the proposed works were of a desirable kind,' there were others that might be called' luxuries. He quite agreed that preference should bo given to the back-Mockers, who were yearning to obtain roads, bridges, and other necessaries. His sympathies were entirely with them, nnd applications of that nature would always be more fav-* considered than those for money to provide luxuries like town halls. Ha thought they would agree with him that in no part of the world could local bodies obtain money on mow reasonable tcrmn than in New Zealand. Ho thought the Government was wise in saying that the interest should include sinking fand te abolish the debt. He did not think there ves much chance nt tho present time of lifting the JSOWI limit. The question was now heiiiat considered of guaranteeing the local bodies' loans, so as to give them thj full benefit of the State's position, but no definite decision had been arrived at.