LOANS TO LOCAL BODIES

Taranaki Daily News, Volume LIV, Issue 277, 20 May 1912, Page 2

LOANS TO LOCAL BODIES

PROTEST AOAINST LIMITATION. The chairman of the Moa Board referred to the fact that the Stratford County Council had been informed that it was not the intention of the State Guaranteed Advances Department to gram any more loans to any local body that had already borrowed a total of £SOOO. This, he said, made it an absolute impossibility for the majority of the local bodies .to carry on new works, as it was impossible for them to borrow small amounts in the open market advantageously. lie was of opinion that the Act had been a failure, as far as the guaranteeing part had been concerned. It was not so easy to obtain money on a mere guarantee as it was on the security of the whole colony. He was not one of those who did not believe in borrowing. because lie was of opinion that borrowing must continue for many years to open the country. lie moved: That this Board has learnt with dismay that no further advance will be made under the provisions of the New Zealand State Guaranteed Advances Act, 1911, to any local body which has already received loans under that Act amounting to £SOOO, and that the attention of the Minister of Finance be drawn to the disadvantages that must accrue to all country districts from the inability of the local authorities to raise money for the improvement of roads .and erection of bridges if the restriction is continued for any length of time.

This was seconded by Mr. Lawrence and carried.

It was also decided that a copy of the resolution be forwarded to the Minister of Finance and the member of Parliament for the district, and also to Messrs. J. Brown (chairman of the Taranaki County Council), A. Morton and E. Maxwell, and that they be asked to endeavor, while attending the conference on the Local Government Bill in Wellington, to interview the Minister of Finance on the subject.