The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JULY 1st, 1924. LOCAL BODY INDEBTEDNESS.

Hokitika Guardian, 1 July 1924, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JULY Ist, 1924. LOCAL BODY INDEBTEDNESS.

Tilri gross debt of local governing bodies in New Zealand, |>cr head ot population, has increased in thirty years from £lO 14s 4d to £Ol Os 8d ; it increased by 17 jcr tent during the latest year for which official statistiis are available. The growth of local bodies’ indebtedness has tended to increase at such a progressive rate that a- review of the position as revealed by the figures, is not. says the Government Statistician, without interest- to those concerned with the quesion. The gross indebtedness of local governing bodies, on account of outstanding loans, has increased in the twenty years from 1902-3 to 1922-23 from £8,217,196 to £36.059,332 exclusive of moneys borrowed from the Government, which represented a further gross indebtedness of £7,004.067 at March 31st., 1923. made up as follows: —lnscribed debt (i.c., debetures under the Roads and Bridges Construction Act, 1882, converted and amounts borrowed from the Treasury under the Government I-nans to Local Bodies Acts), £2.341.667; and loans from the State Advances Office, £5.262,400. It will be seen accordingly that the total gross indebtedness of nil local bodies at March 31, 1923, aggregated £43.663449. The corresponding net indebtedness was £38,160.040. but it- U on the

greater amount that all interest and kindred charges must lie calculated. Of the gross debt of £43,003,440, there were interest and sinking fund charges ntnounting to £3.579,571. Sinking fund payments, while essentially different in their nature from interest payments, have nevertheless to lie paid from the pocket of the ratepayer in the form of special rates. The total annual debt charge on each class of local liability on .March 31. 1923, was as follows: and stock. £1,827,992; sinking fund on debentures and stock. £380.818: charges on State Advances loans, £283,457; and on inscribed debt due to the Treasury, £87,274; a grand total of £2.579,571. The following analysis shows tho relative growth of the debt : - Vettr Loan ended Gross Kate charge Mar. 31 Debt per head, per head

The increase in the Inst yenr is the greatest yet lecordod in any one year, and amounts to no less than £1 Ids Oil per head of the population. fin roughs with over three millions, and electric power hoards, with a million and a half, are the principal eontrilmtories to tnis phenomenal addition to local indebtedness. There has been an increase in the net indebtedness of local bodies, ioi account, of outstanding loans from £7.338.070 to £32.111.022. during 2d years exclusive of horrowinj; from the (iovoi nniont, which represents a 'further indebtedness of £O,015,104. made up as follows : —lnscribed debt. £1,241.009; State Advances. £•1.770.13.“); making the total net debt £38.100.0(0. A "a i nst the relative growth of loan indebtedness it must he remembered, however, that there is a more than corresponding augiuentalion of assets. In the ease of boroughs. for example, which are responsible for approximately half the debt, the outcome of loan money raised has been the introduction and extension of such public utility services as electrical works, gasworks, tramways drainage and water systems, and a multiplicity of similar undertakings. Taking the 1013 figures as an index of 1000. the net local indebtedness as at .March 31. 1023. is 1808. and the assets 2172, for all local bodies. For boroughs only, the index number is 2008 and 210.“) respectively. Of tho total indebtedness (other than loans from the Oovernment). £25,(188.390 was taised in Now Zealand and £10.370-002 abroad. The rapid increase in the proportion of lot aliv-raised loans is no doubt due to tin* statutory encouragement to lenders.

£ £ M. (1. JL' s. d. ISO! 7 3.07o 10 11 •1 0 12 7 1!)();! 0,88(5.070 12 2 8 0 13 8 1D1:{ 22.212,355 20 18 1 0 10 1021 552.1(55.018 20 12 S 1 8 10 1022 37.20.',.r,:)«) 20 10 1 H 2 1023 1 3.003. 11!) 31 0 S 2 0 0