LOCAL BODIES’ FINANCE.

Hauraki Plains Gazette, Volume XXXIII, Issue 4429, 19 June 1922, Page 4

LOCAL BODIES’ FINANCE.

THF. ANTECEDENT LIABILITY. Two letters concerning the elimination of local bodies’ an.tecendent liabilities were read at. the Thames County Council meeting on Thursday. 4 circular letter from the Thames Boiough. Council solicited co-opera-tion tc urge the'Government to raise an adequate amount by way of a loan to meet the needs of; local bodies in the matter of their antecedent liabilities as compulsorily determined under the Local Bodies Finance Act, 1922. The Council had exhaustively investigated every point of view, and the many difficulties were largely attributable to all local bodies being forced on the market at the same time. The Council thought the suggestion of pooling the antecedent liabilities was not practicable, especially in regard to the establishing of the individual security on the London market, whereas this could easily be overcome by the Government itself raising the loan. If the Governmentdid not assist, the Act would be inflicting a hardship, as the local bodies would be compelled to shoulder an extra, burden for many years to cbme. The Council’s object was mainly to urge the Government to undertake the flotation of a loan for the payment ofthe local bodies’ antecedent liabilities. The Ohinemuri County Council submitted a copy of a letter it had received from the Hon. W. H, Herries, on behalf of the Minister of Finance, and which- has possibly some bearing on the above majtter. The letter is as follows: “I have to re-

ceipt Qf your letter asking whether, the Government can apportion a part of the loan being raised on the London market for payment of local bodies’ antecedent liabilities. In reply I have to inform you that the question of providing funds has received careful consideration and it jhas been decided that it is not possible to carry out the suggeston that the Government arrange for the i epayment of the total indebtedness of all local authorities by means of a State-rais-ed loan. As a matter of fact, the five million loan recently raised has wholly been allotted for specific purposes, and would in any case be far from sufficient to meet the liabilities of local bodies in this respect. The Government is always .willing tp help local bodies, and I am prepared to give favourable consideration to all applications for permission to borrow the various amounts required at a reasonable rate of interest. I may say that several local bodies have already commenced to make their own arrangements for liquidating the antecedent liabilities. Under the new legislation each local authority is now in a position to offer the security of; a special rate for a special loan to repay money borrowed by way of overdraft, and your Council should have no difficulty in raising the amount it requires.”