LOCAL BODIES LOANS.

Gisborne Times, Volume XXVI, Issue 2280, 27 August 1908, Page 2

LOCAL BODIES LOANS.

A NEW SCHEME

(Special to “Times.”)

WELLINGTON, August 25. The Local Bodies Loans Amendment Bill contains a scheme whereby local bodies, instead of procuring loans from the Government), may raise loans from vile public debentures guaranteed by tlie Government. No such giiaianaee is to be given except by order id tho Council, and the aggregate amount to be guaranteed in any one year is not to exceed £500,000. in respect of every guaranteed loan tlie local authorities must establish h sinking fund in the hands of the Public Trustee. The annua! payment into the sinking fund must not be less than 14 per cent, of tho loan, lialf of the amount being paid liy tho local authority and the other half by the Government by way of subsidy. Tho debentures shall have a cuiTuncv of 33 vein's and the interest payable shall' not exceed 4J per cent. Clause 10 provides a simpler method of' settling objections to the special roll of ratepayers which is prepared wlieii the loan is charged on a particular part ol the district. At present. all such objections have to he heard lay an Assessment Court under the rating Act. Clauses' 17 and 18 are intended to remove a defect in the principal Act by reason of which a local authority cannot raise a loan to pay off .'in existing loan if the annual eh at; go on tho district is thereby in any way increased. Tlie Amendmeat enables this to be done with the consent of the ratepayers. In the same manner in tho case of a loan for a public work, clause 19 provides that in respect of all future loans raised by local authorities under the Act, the Public Trustee rdiall he tho sole commissioner of sinking funds, and that all sinking funds so vested in him shall be invested in Government securities. Clause 20 exempts lands situated in Native townships from the rule which prevents loans from being granted under part 2 of the Act in districts where a certain proportion of the area consists of Native lands.