LOANS TO LOCAL BODIES.

Manawatu Herald, Volume XXX, Issue 434, 10 September 1908, Page 2

LOANS TO LOCAL BODIES.

The Local Bodies’ Loans Amendment Bill which is before Parliament this session contains a scheme whereby local authorities, instead of procuring loans from the Government, may raise loans from the public on debentures guaranteed by the Government. No such guarantee is to be given except by Order-in-Council, and the aggregate amount to be guaranteed in any one, year is not to exceed guaranteed loan the local authority must establish a sinking fund in the hands of the Public Trustee. The annual payment into the sinking fund must not be le..s than one per cent, of the loan, half of this amount being paid by the local authority and the other half by the Government by way of subsidy. The Bill provides a simpler method of settling objections to the special roll of ratepayers which is prepared when a loan is charged on a particular part of a district. At present all such objections have to be heard by an Assessment Court, under the Rating Act. Clause 19 of the present Bill provides that in respect of all future loans raised by local authorities under the Act the Public Trustee shall be the sole Commissioner of the sinking funds and that all sinking funds so vested in him shall be invested in Government securities.