THE BOROUGH LOAN.

Patea Mail, Volume VIII, Issue 983, 12 January 1883, Page 2

THE BOROUGH LOAN.

The loan question has assumed rather a peculiar aspect. The Government will not lend the money unless the. special rate is a shilling one. The ratepayers sanctioned the loan upon a sixpenny rate. The question, therefore, is how to alter the rate so as to enable the Borough Council to get the money. It is perfectly clear that the money will have to come from somewhere, because works involving an expenditure of some £3OOO have already been undertaken, but it is not at all clear how the present difficulty is to be overcome. The Act provides that; if a - special rate is insufficient to meet the interest and sinking fund of a loan, the Council can amend the rate by raising it until they have enough for the purpose. But in cur case, it has not been proved that a sixpenny rate is insufficient, hence it is doubtful whether the clause in the act can be applied. If it cannot, the Council will have to appeal to the rate payers again, and ask them to agree to a shilling rate. The difficulty might be got over by sending a deputation to Wellington to interview the Trust Fund Commissioners, and it is almost a pity that this course was not taken at first. Half an hour’s personal explanation would do more good than six months’ correspondence. We shall await the legal opinion, which the Borough Council have decided to obtain, with considerable interest, because if it is unfavourable to the Council amending the rate themselves —and we think it will bo—the Borough will be in a very ticklish position, which will require some good handling to get ont of.