LOANS TO LOCAL BODIES.

Taranaki Daily News, Volume LV, Issue 123, 11 October 1912, Page 5

LOANS TO LOCAL BODIES.

THE PARLIAMENTARY ENQUIRY.

By Telegraph—Press Association. Wellington, Yesterday. At to-day's enquiry by the Public Accounts Committee into the allocation of loans >to local bodies under the State Guaranteed Advances Act, Mr. Poynton, Superintendent of the De■partment, produced returns giving details of the loans granted under the old Loans to Local Bodies Act. During the period of 25 years that this Act was in operation £1,300,000 was lent to local bodies, and during the two years the State Guaranteed Advances Act had been in force the loans authorised to locaj bodies totalled £665,430. During the same period of 25 years borough councils received £732,021, and the amount they received under the new Act was £797,590, final approvals being £1,026,740.

For road boards under the old Act £615,075 wa9 loaned, and under the new Act £211,300 was approved, and £148,230 paid. Sir Joseph Ward said lie proposed to give evidence on oath, and say from his own knowledge during the last twenty years local bodies had been unable to obtain sufficient money for their requirements. Mr. Poynton, continuing, said the cost of administration of the department was 9%d per every £IOO of capital employed. Questioned by Mr.' Allen, witness said, in sending the letter asking for the enquiry, the board Had before it the press reports of the debate in Parliament. Members of the board were very excited about the matter, and agreed with him that the sooner an enquiry was made the better. The Minister had made no charge in the House against the Board, but he thought that what he said implied that the Board had been influenced by political motives. The Board could not grant a loan without the approval of the Minister, but a recommendation for loans was sent to the Minister by the Board.

Mr. Poynton was closely examined by the Minister regarding the granting of a loan of £87,1135 to Remuera Road Board near the time of the general election of 1011, and also with regard to other loans granted to boroughs. There had 'been very few approvals since the present Minister came into office. It would be necessary to raise about £300,000 this "year to pay the amounts coming due for next year. The commitments were £250,000, and for the following year about £IOO,OOO. Generally the Board refused loan money for what it regarded as luxuries. Some gas loans were granted, and some were refused. Tt depended on the amount of money the Board had at its disposal.