LOAN MONEY.

Taranaki Central Press, Volume IV, Issue 380, 11 March 1937, Page 2

LOAN MONEY.

Government and Local Bodies

Policy Explained. Timaru, March 9. Doan mone’y for local bodies, housing and the reorganisation of Toe al government through amalgamation were prominent among the numerous subjects discussed by the Minister of Internal Affairs, Hon W. E. Parry, at the opening of the Wfenty-seventh ; conference of the Municipal Associa. !tion of New Zealand. Delegates were -welcomed by the Mayor ot Timaru, Mr P. C. Vinnell. The Minister said that his presence couldi be taken as an indication of the importance which the Government attached to the conference as the official voice bf New Zealand municipalities. Doan finance was an important feature of local body administration, th' Minister said. While there were many ad vantages in living entirely Within one’s income, -it was recognised that many major undertakings would never be commenced if it were not possible to finance the cost out of loan moneys. Even with this avenue available with loan money at 3 J per cent, it was sometimes difficult to proceed with major undrrtak ings. He had tried to understand the psychology behind the adverse vol which Wellington ratepayers gave a fortnight ago. Of th.ci ifive out of six proiposals ivJhich were rejected *on •-> was for the extension of the terntcTy. “It is interesting to no>t~ that with the return of prosperity, incased activity is evident in the incdmiplete returns for the ipresunt financial year.” said Mr Parry. “The amount sanctioned up to January 31 last was £1,789,745. In each of the financial years 1934-35 and 1935-36 the amount sanctioned by the Doans Board for new works was approximately £1,500,000. It is not the policy of th present Government to restrict bor rowing operations for capital expend; ture unduly, as it is recognised th.--n reasonable amount of prudent hov-ro'V-’ing is a n cessary feature in the sphere of local body administration. The Minister added that it was th*' Government’s intention to maintain

interest rates at per cent. Discussing the proposed reorganisation of local government, the. Minister said that his Bill providing for amalgamation offered a simple means of bringing about a substantial reduction in the number of local author ities with, a view to creating bigger and more satisfactory local government units. The scheme was perhaps drastic, but it was fair.