LOCAL BODIES LOANS.

King Country Chronicle, Volume VIII, Issue 649, 7 March 1914, Page 5

LOCAL BODIES LOANS.

CONCESSIONS TO BACKBLOCKS

ASSISTING OUT-BACK SETTLERS

In view of the consolidation of the measures dealing with local bodies loans which was effected last session it will be of general interest to outline the provisions now in existence for assisting the baekblock settlers in promoting the roading of their respective districts. Mr C. K. Wilson, member for the district, when at Te Kuiii recently informed a Chronicle representative that the provisions of the consolidated Act did not seem to bo generally understood, and has forwarded a copy of the Act in order to have the various points dealt with for the information of the settlers. Section fiß of the Act. which deals with the interest to be charged provides that the rata of interest shall be four and a-half per cent, or one-eighth per cant, more than the rate at which the money was raised. In calculating the last-mentioned rate all feeß and charges in connection with the raising of the money by the Government shall be included. The effect of this section is, therefore, that a minimum rate of four and a-hulf per cent, shall be charged, while the Department is safeguarded from having to lend at less rate than the money cos* the Government to raise. Section 70 contains provision for .special assistance to outlying districts in respect to loans raised for roads and bridges and for metalling such roads for the first time. For the first ten years of the term of any loan so raised by these settlers the Government takes the responsibility or paying one per cent, of the rate charged, thus reducing the rate charged at the settlers by that amount, and for the second ten years of the term the Government pays one-half per cent, of the interest charged to the settlers. Therefore if the interest originally ehargad for a loan ia four and a-half per cent, the settlers in all cases where the work is deemed to be in an outlying district, will be called upon to pay only three and a-half per cent, for the first ten years and four par cent, for the second ten years.

This section also provides that the maximum amount for providing funds for advances to local authorities in each of the ten years after the passing of the Act shall be .C 250.000. The concessions to back block localities apply to practically every portion of the Wuitomo and adjoining counties, and constitute material assistance to the people who are engaged in the great work of settlement. In addition it has been the experience in this district that the Government has subsidised the settlers' loans to the extent of £ for £. Under these conditions it is not surprising that the settlers ar? showing conisderable activity in promoting speciul loans for roading and the district will benefit accordingly.