LOAN MONEY.

Hauraki Plains Gazette, Volume XXXVII, Issue 5014, 16 August 1926, Page 2

LOAN MONEY.

LOCAL BODIES’ BOARD.

BOROUGH COUNCIL’S VIEW®.

The measure to be known as the Local Government Lcfans, BoaTd. Bill, which has been brought down by Parliament as a means of stricter supervision over the borrowing activities of local bodies, evoked considerable discussion at Thursday’s meeting of the Paeroa Borough Council. The Mayor (Mr W. Marshall) said that he thought the principles underlying the measure appeared to be sound and desirable. When considering the Bill it was necessary to view it rfom a national viewpoint rather than in respect to its application to local affairs. So far ap could be judged the board held the powers of a Royal Commission, but in the event of the board sitting, the liability of the body responsible tor the sitting did not appear t 0 be Vetoed.

Cr. H. J. Hara said that so fafi as his knowledge of the measure went he did not think it was the intention of the board to oppose or hamper borough loans so much a£ it was to keep a closer watch on county affairs. He did not think the council was quite in a position to raise an objection to the proposed Bill until members were fully 'conversant with it. There appealed to be no dbubt that ratepayers required protection against local bodies at timess and he favoured the measure in the main because it would be an efficient check on excessive or unwarranted borrowing. CR. FLATT OBJECTS. Cr. F. E. Flatt stated that he was strongly opposed to the Bill. So far as local, affairs were concerned, mistakes might have been made in the past, but generally the affairs of the borough were well run and there were tew complaints from the ratepayers, who were the best judges. He was prepared to state that the various loans raised by Mr Brenan during his term as Mayor would not have bean sanctioned by a body such as the proposed board, yet the ratepayers had willingly authorised the raising of the loans, which went to prove that the various undertakings' were warranted. If money was requii'ed by local heidies it could us-u-ajly be raised, especially if diplomacy was used, and Government officials, especially Undersecretaries, were tactfully 'approached. It was also desirable to obtain the-goodwill of the member for the district. It was not reasqha.ble to suggest that outside people , who would comprise the board, would have the intimate knowledge of local body requirements. Councillblrs, on the whole, were out tor the advancement of the town they represented, and they frequently undertook progressive works and made them planks, in their platforms. If that authority was to be taken aw'ay individual effort and enterprise would be stifled. Or. Flatt then mqived : “That this council, while reviewing the Bill as it stood at present, was not favourable towards it.” Cr. de Castro said that the resolution savoured too much of direct opposition. He thought an opportunity should be given to fully consider the measure. On the face ot it there appeared to be some good features in the Bill, and it unwise to condemn it too hastily. Cr. E. A. Porritt said that he agreed with the Bill in the main, as it was desirable to call a halt ota reckless expenditure by local bodies. Enormous sums were being borrowed, and it would not go on unchecked. Ha ..thought that as the Bill stood local body representation on the board was sufficient, and there was also the question of the local body desiring to raise a loan being called upon to pay the expenes-s of the board, but no doubt once the machinery was; available such anomalies woluld be corrected. There being no seconder to> Cr. Flatt’s resolution, it lapsed. The Mayor then moved: “That this council approves of the proposal to control and supervise local body borrowing, but considers that the Bill should be held over to afford local bodies time to consider the details.” Seconded by Cr. Hare and carried, Cr. Flatt being the only dissentient.