Local Bodies Loan.

Hokitika Guardian, 8 August 1922, Page 4

Local Bodies Loan.

HELPING THE COMMUNITY

WELLINGTON, August 4. A meeting of the legislative and executive committee of the Municipal Association was held at the Town Hall yesterday, Mr R. A. Wright (Mayor of Wellington) presiding. RELIEF FOR UNEMPLOYED. The Minister for Internal Affairs wrote that representations had been made by certain local bodies urging that the provisions of section i of the Local Bodies’ Finance iAct should he extended to enable moneys- to he borrowed for the relief of unemployment. The matter had received consideration, but it was thought that if the provision was made it. should he by wav of a. new provision rather than by inclusion in section 7, and it had been suggested that power might he given to loenl authorities to borrow money by special order for the purpose of the relief of unemployment, and that the provision, if made, should expire on Doeomlier 31st. 1923, it not being desirable that such provision should he of a permanent until re. D. Tf. T. J. Thacker (Christchurch) said it seemed desirable Hint something should he done. Unemployment was with them right now, and that clause would give them the right to raise money. He moved that the proposal lie approved. Mr J. IV. McJsw.ni (Mayor of lMone) seconded tho proposal, which was carried unanimously. ANTECEDENT LIABILITIES. In discussing the proposal to raise a loan in Loudon to cover local bodies’ antecedent liabilities, the chairman pointed out that financiers in London had informed the Government that if they went hack again for' money for local bodies’ loans it would damago the Government’s credit. Dr Thacker said that Colonel Christie informed him at Christchurch that there was plenty of money for invest, incut in certain industries, hut. the Government wanted to protect their own borrowing. Mr 11. S. W. King (Devonport) said that about a couple of years ago Dunedin suggested that the Government should raise a loan and lend the money to local authorities foY improvements. In this way the local authorities would have got the money at a cheaper rate. '

It was decided to inform local bodies that it was not possible to get tho Government to raise a loan for the purpose of enabling them t<> meet antcoed. cut liabilities. TA XIN<! M UNICIPAL ENTER-

PRISE. On the question of tlio taxation of municipal enterprises, llr If. W. Short said Lust bourne wished to express a strong protest against it. Dr Tracker said that tho reference was to trading concerns. Some corporations running electric lighting also supplied fittings etc., in competition with the local trader, and it had a restraining effect in preventing excessive charges being made. They tried to cheapen the cost of commodities to the public and it. was a good principle. Mr MoEwnn said that where municipal enterprises had a fair amount to their credit in particular account they could reduce the price to the comminute of the gas or electricity and so reduce the net profit. The Government would not. gain anything by tbe proposal. The chairman remarked that in large concerns they generally wanted

a margin for incidentals, especially with regard, to tramways. Mr Bosworth Williams said they were working for the good of the rommunity, and the Government would spe that they went on with their enterprises.

It was decided to record that the meeting was opposed to the taxation of municipal enterprise.