The Municipal Conference.

Feilding Star, Volume XVI, Issue 2, 3 July 1894, Page 2

The Municipal Conference.

AN IMPORTANT PROPOSAL. j \ (rKB PBKSS ASSOOIATIOK.'i Welunotok, This Day. A special committee of the Municipal Conference was appointed to consider a proposal that in view of the high rate of interest paid by local bodies throughout the colony upon their various loans and the relief whioh wonld be afforded to taxpayers the Government be asked to propound a sohema for the consolidation of such loans into a Government guarantee H per cent ' loan. The committee reported favorably on the proposal and recommended the Government be asked to formulate such soheme. The committee pointed out the annual interest on loans affected by local bodies (exclusive of Government loans under the Loans to Local Bodies Act and Roads and Bridges Construction Act) averages over five and half per cent and the annual and average charge for sinking fund is over one half per cent annum. They considered that the accrued sinking funds would go far in making up the difference between existing loans taken at par and same as now standing m market, and farther, that Govnrnment would take no risk in the matter as any of the various local authorities could easily pay* three and a half per cent on their respective loans. The soheme if carried out, would efiect a saving to the ratepayers of * upwards ■of £155,000 yearly. The report was adopted. ■ ■:•