LOANS TO LOCAL BODIES

Taranaki Daily News, Volume LII, Issue 384, 9 May 1910, Page 7

LOANS TO LOCAL BODIES

DISCUSSED BY CLIFTON COUNTY COUNCIL. . The question of the position of local bodies in connection with Government, loans was discussed at Friday's meeting of the Clifton County Council, when a communication was received from the State .Guaranteed Advances Office, asking the Council to forward a copy of the sepcial order authorising £6OO for the Pukearulie loan, sealed and certified. Application should .be 'made to the State Guaranteed Advances Office, as no more loans can be granted under the Local Bodies Loans Act, I'JOS, and that the Board 'will not meet for nearly three weeks.

'The chairman said this was unfair to local bodies. In December fast the Council applied to the Treasury to increase the £6OO to £BOO. They had a reply informing them that they could only btain £OOO under the old Act. lie went up to the Pukearuhe and asked the setters whether they would have uie whole £BOO under the new Act or the £6OO under the old Act and 'the extra £2OO under the new Act. They were unanimous in agreeing to the latter. Xow at the last moment they had received notification that none of the money could lie obtained under the old Act.

Cr. O'Sullivan said the position vvas very unsatisfactory, and would necessitate .a further delay of a month. _ The chairman said it would mean considerably longer. The money would cost iVs per cent, instead of 3% per cent., an! the ■special order for the former application had been based on a 3 1 /,, per cent. loan. Accordingly all the formalities would have to be gone over again, necessitating additional expense anil delay. After the luncheon adjournment the chairman moved the following resolution.—"The Council protests against the extraordinary position in which they are now placed in regard to the Pukearuhe loan proposal. In this case the Colonial Treasurer having given his consent to the granting of the loan, the Council made the necessary special order and let a contract for the work being done. The Council is now informed officially that the loan cannot be granted as promised and that steps will have to be taken to obtain the money under the State (Jiva ran tee Advances Act. The Council therefore respectfully places the matter before the IMinisieV for Finance with the rec|uest that he will no take such steps as will enable the provisional agreement with the Council being carried out." ■ This was seconded by '.Mr. Sander and carried unanimously.