LOANS FOR RELIEF

Hokitika Guardian, 25 July 1933, Page 5

LOANS FOR RELIEF

RATEPAYERS TO BE CONSULTED.

DECLARATidN BY MR COATES.

(Per Press Assoctutiovr~~ Copyright.,

WELLINGTON, July 24

An announcement that it is not the intention of the Government to renew the legislation authorising local bodies to raise loans lor unemployment relief purposes without the consent of the ratepayers was made,,to-day by the Minister of Finance, Mr Coates. After recalling the legislation enacted in 1926, Mr Coates explainea that, at that time, it was intended only as a temporary measure, to tide over the initial stages of unemployment, which no one at that '[time thought would extend over a period of years. Incidentally, in 1926, there was no unemployment taxation, ana the relief which was then given was by means of acceleration of public works.

He said the authority to borrow without taking a poll of the ratepayers was part of a plan then conceived, to speed up public works and thereby to create employment. The Government now felt the time had arrived when the local authorities should consult the ratepayers in connection with any proposals to (raise further loan moneys, for, in the long run, it was the ratepayer who must meet the special rates which have to bn struck as security for the loans raised.

The Minister said the fact that it is not intended to renew the legislation did not mean that normal developmental work of local authorities would be affected.