LOAN MONEY

Hawke's Bay Herald-Tribune, Issue 47, 11 March 1937, Page 13

LOAN MONEY

i Government and Local Bodies POL1CY EXPLAINEO Loan maney for local bodies, housing and the reorgamsatioa of local go.vernlnenfc througb amalgamation were proininent among the numerous subjects discussed at Timarix by the Minister of Internal Affairs, Hon. W. E. Parry, at the opening of the twenty-seventh conference of the Municipal Assoeiation of New Zealand. Delegates were weh comed by the Mayor of Timaru, Mr. 1'. C. Yinnell. The Minister said that bis presence could be taken as an indication of the importaaoe which tlxe Government attaehed to the conference as the official voice of New Zealand municipalities. On the question of boiising the Minister outlined the poliey of the Government and the work that had been done to inaugurate the State'a housing scheme. He mentioned that negotiations for acquiring traets of land in practically every impoytant centre were under w&y. Several important purchases had already been made. After referring in detail to the progresa of the Government 's housing plans, Mr. Parry discussed the necesaity for housing surveys by municipalities and other local bodies, "Let me emphaBise,,, he added, ' ( that the Government, worlting in co-operation with loeal bodies, will yiot be content until every family and every person in this f air Hominioa of purs has a proper and comfortable home to live in." Loan fmanco wns an important feature of local body administration, the Minister said. "While there were many advantages in living entirely within pne's income, it was xecognised that many major undertakings would never be eoimnan&ed if it wero not possiblo to finance the cost out of loan moneys, Even with this avenue available with loan mpney at pcr oent, it was sometimes diffienlt to proceed with major undertakings. He had tried to understand the psychology behind the adverse vote which Wellington ratepayers gava a fortnight ago. "It is not the poliey pf the present Government," he said, "to. restriet borrowing operations for capital expenditure unduly, as it is recognisei fhat a reasonable amount of prudent borrowing is a neeessary feature in the sphere of local bpdy administration, ' ' The Minister added it was the Government 's intention to maintain interest rates at 3J peY cent. Discuasing tha proposed reorganlsation of local government, the Minister said that his Bill providing for amalgamation offered a simple means of bringing abput a substantial reductlon in the nfamber of loeal authorities with a view to ereating bigger and mere satisf actory local government units, The scbeme was perhaps dyastic, but it was fair, There was no yeasou to fear hardship under reasonable administration. He wanted, loeal bodies to look at the matter from a national point of view, It was tedious to say again that 700 local bodies wero far too nxany nnits for a D'pminiou such as New Zealand. "Those who are slncerely and tyuly anxious to avoid dictatorships will, I feel sure, be with me in the propoeals to reorganise local government in an as efficient way as is possible," added Mr. Parryj