EXTENDED BORROWING POWERS.

Manawatu Herald, Volume XXX, Issue 438, 24 September 1908, Page 3

EXTENDED BORROWING POWERS.

A Deputation to the Prime Minister. By Telegraph—Special to Herald Wellington, This Day. A deputation was introduced yesterday by Mr, John Stevens, M.P., to the Right Hon, the Prime Minister, consisting of the following delegates from local bodies Messrs. J. G. Wilson (Manawatu County), R. K. Simpson (Rangitikei County Council), Richards (Horowheuua County), Gardner (Levin Borough), Fowler (Kiwitea County), Lethbridge M.P. (Pohangiua County), B. G. Gower (Foxton Borough), Pierce (Oroua County), Remington (Wanganui), and McKenzie (Manawatu), in connection with increased borrowing powers required under the loans to Local Bodies Act.

Mr. Stevens said that while the local bodies were satisfied to a degree with the increased borrowing powers under the Bill now before Parliament, there were in the present Act conditions and anomalies which might be overcome, whereas Rangitikei County being double the area of Wanganui County can only borrow £6OOO, as it contains no road boards, while Wanganui county, containing six road boards, can borrow £24,000, £IB,OOO of which can be borrowed by the road boards and £6,000 by the county. Referring to the intention of the Government to have a survey made of the proposed LevinMarton railway when the services of an engineer are available, he said the deputation expressed the hope that this might be in the near future.

Mr. Wilson pointed out that the Manawatu County Council was not able to borrow for rolling stock and road making machinery and renewal of tramway track and purchase of engine which they had to do out of revenue.

Mr. Simpson saidlthat the Rangitikei County Council wanted to borrow pro rata and instanced the disparity between Wanganui County’s and Rangitikei County’s borrowing powers, £24,000 and £6OOO respectively. Mr. Richards said that the Horowhenua County was merging road boards and lost borrowing powers to the extent of £3,000 with each board.

Mr Gardener, Mayor of Levin, pointed out that the borough was entitled to borrow .£4,000 over two years for water supply and £20,000 over two years for drainage, was it not equitable that they should be empowered to borrow £24,000 for the two purposes irrespective of the amounts expended on each. Sir Joseph Ward said he would consider the representations made. There was, however, no likelihood of the Government being able to increase the purpose for which local bodies might borrow for the reason that the amount borrowed by local bodies at present was too large and it would mean further limiting the sums that might be borrowed by each local body if the purposes for which they might borrow were widened. Machinery should come out of revenue. The Government were placing £ 10,000 on the estimates lor roads in the Rangitikei County outside of any works that the Council wished to borrow fcr. He would look into the question as to whether the new bill covered machinery but as Minister of Finance it was his duty to safeguard the interests of the whole of the people in the dominion by keeping the borrowing powers of local bodies within reasonable limits. Railway construction had been applied for in different localities which would cost eleven millions of money and loans to local bodies had been applied for to the amount of ,£700,000 more th .11 the votes available. This could only be provided for by borrowing but the deputation could clearly see that such a proposal was quite impracticable and that any Minister of Finance who permitted this to be done would not be safeguarding the best interests of the public.