HOUSE OF REPRESENTATIVES.

Manawatu Standard, Volume XII, Issue 1737, 18 June 1886, Page 2

HOUSE OF REPRESENTATIVES.

- LOCAL BODIES LOAN BILL. Sir Julias Vdgel moved the second reading of this. Bill. H© carefully explained the provision's of the measure. The Bill, he said, was the outcome of observations of difficulties tneodntered by local bodies. Mr Oruiohd pointed out th»t the provision as to ichool buildings being: built out of ratw was ■ a new departure. It would very largely increase tbe burdens of the ratepayers. He observed that the Government were not carrying oat the local government policy they had promised to introduce. Mr Moss said the Bill was a measure to prevent -the General Government to reduce expenditure m any, way, but to throw extra burdens on local bodies. As a Bill to allow local bodies to ran into debt, it Was perfect, and no doubt Would betaken advantage of. The chairman of a council or of a road district who wished to immortalise himself could iweetly gild the pill, and point out that ho interest would have to be puid for the first year. < The moral responsibility of these loans would rest with the Colony.' '--. «■>£?. '■•■'•.' ...' •:-• .'-•• ■ •■■-■- Captain Russell objected to the clause as to. school buildings, as unfair to the outlying districts. Sir Julius Yogel, m reply, said that the Bill would assist local bodies to borrow more economically. It was a Bill to improve the position of local bodies already authorised to borrow; ' The Bill was read a second time. LOANS TO LOCAL BODIES BILL.

The Treasurer moved the second reading of this Bill, wiich was, he Baid, an addition to the Bill read the second time that afternoon. The. one provided thai local bodies might borrow, and the othei provided for. tho Government lending the money on favorable terms. The Government was to lend money at 5 pet ! cent, payable for 26 years, the Colony tc be responsible for the payment of the capital sum, and an amount of 2£ pei cent, per year to be put aside to meet the liability. The purpose of the Bill I was to leave to the ratepayers what mpngy should be borrowed, and for the construction of what works As regarded the means by which the Treasurer gHould supply the money, it was intended that fofr a time the money should be raised within the Colony. It was left,. however, to the discretion of the Treasurer. Tho limit of the amount to be left annually was left blank,' and could be filled up* in committee. The Bill^ha contended, must I be a great advantage to th^ local bodies I throughout the country. Major Atkinson said the- Treasurer ought to have told the House something as to how the main roads were to be constructed. He would point oat that this great Question 'was left entirely imtouched, and were the Government going to make the roads but of borrowed money ? He was not going to mention that £800,000 that did not exist ; but ha wanted to know how the Government were going to deal with this question, especially' m Outlying district.' The settlers on bush' land could not, it was clear, borrow money under this Act for roads. Generally the Bill was more liberal $han ■ the Boads arid Bridges Construction Act. But thi question of roads had yet to tie settled. iH« hoped '$ M Government would take into consideration the position of local bodies, who borrowed under the Roads and Bridges Construction Act They would have ..to pay 9 per cant for their money, wbile bodies borrowing under this Act would only have Mr Moss considered this was a Bill which woul4 destroy tbe . self -reliance of local bodies, and the effect of it would be ' to once more float £1,000,000 or £2j0d0,000 of unnegotiable, debentures. Mr Buchanan said he was of opinion that the Bill would fail to provide for roads m such districts as the Seventy • Mije Bush. He had several Committee objections to the Bill. Mr Hursthouse contended that the .Bill was an attempt to get rid of the Colony's legitimate liability m regard to main roads. He held that the Colony must undertake this liability, and complained that too much money had m the past been spent on railways as com pared with roads. He pointed out that theye was no provision m tbe Bill to ■enable: local bodies to pay off liabilities while the debentures were current. He was not sure that the Government had rtdtia deep design, m shifting |hi» liabili ties on 'school buildings on to local bodies. Mr Eerr would like to see some provision for opening up roads m theiao. latcd- portions of the country.' With that exception, he thought the Bill was complete. " Mr Rolleston thought the Bill was, on the whole, what the House would have to accept and consider carefully m Committee. With regard to tbe clause referring to school buildings, the option m that case was a mandate — it meant that the : local bodies would have to pay moneys which had hitherto come out of the consolidated fund. In the past the Colony had been spending money to . waste m railways, without making roads at the same time. This Bill would en*Ble th* distriots to help themselves to a certain extent. They were told' that the Public Works' Statement would propose money being taken out of loan for the purpose of making roads to open up lands for sajie. but that would not last; long very likely. < r . : - ■ -' ' • X.L * ,*, Mr Macandrew did .not share m the disconteut expressed with the' Bill .' He thought it was an advance — and a distinct advance—in the direotion of solving the problem of local government. He did hot attach muqh importance to the clause providing cthat loca^bodies mi^ht borrow for school buildings, because he did hot think the local bodies would be got to levy rates for this purpose. He. hopedithat next session a Bill would be brought down , to deftl further with ; the question of local government ; but at present the Bill was, as be had said, a distincc step m advance. Mr W. C. Smith supported the Bill, and thought the Treasurer wasto be congratulated on; having introduced a Bill, the main principle of wbioh wias such a good one as this of lending money to local bodies. :, The Treasurer, m reply, said it was a mistake to say that the Bill w«s drawn upon the lines of the Boads and Bridget

take some clauses of that Act, but one . after another he had to discard them. He would be willing to make the vote a permanent one. He 'pointed out .that many local bodies, wanted schools,, and were unable to raise the money, a-nd^he time would come when especially jihe larger centres would, be glad to take advantage of such a clause as this. The Bill, however, left it optional at present, The second treading of the Bill was agreed to.