EASTBOURNE'S LOAN

Dominion, Volume 10, Issue 3052, 13 April 1917, Page 9

EASTBOURNE'S LOAN

AUTHORITY NEARLY EXPIRED THE WAR MONEY- MARKET The Eastbourne Borough Council is in a quandary about a loan which it proposed to raise for the purposes of water aud drainage -within tho borough. On April '2S, I'Jlu, a. poll of the ratepayers was taken oil a proposal to raiso a loan of £4500, and the ratepayers agreed to the raising of the loan.' But in the Local Bodies' Loans Act titers is-a provision which says tliat if a local body does not raise any part of a loan authorised within two years of the taking of a poll of the ratepayers, the authority' shall lapse. A clause in the Appropriation Act of 1915 l'orhids any local body to borrow or to contract to borrow money without tho consent of the Governor-iu-Council, and there is also a regulation which fixes the rate of interest at which local authorities may borrow at a rato not exceeding 5J per cent. Owing to'these restrictions, the council has not been able to raise its loan in tho war market, and yesterday a deputation of the Mayor and councillors of the borough waited on the Acting-Prime Minister (Sir James Allen) to consult with him about their difficulty. Through Mr. H. Anderson they suggested that something might be done during the coming session to help local bodies out of this position, for it was suggested that the plight of Eastbourne was probably not singular. The proposal was that the Government should introduce some legislation of general application to provide that for the purpose of reckoning the two years within which local bodies are required to raise loans authorised by the ratepayers, the war period should not 'be counted. This procedure, it was urged, would obviate the expense of taking a fresh poll of the ratepayers. Sir James Allen said that the matter was one which lie would have to submit for the consideration of his colleagues in the Cabinet, and this he would be very pleased to do. He recoguised that the case of the borough was one of hardship, and'that some relief should be afforded, but the question of whether it would be wise to do this by some general provision to cover all loans in suspense would require careful consideration. There might be cases in which it would be dosirable that'another poll of the ratepayers should be taken. Some provision might be possible under which the necessity of taking a second poll of the ratepayers might be dispensed with if the Gover-nor-in-Council consented. He woultl commit himself to the extent of saying that he thought something ought to be done to give relief in deserving cases. He promised to/bring the matter before Cabinet as soon as possible.