LOANS FOR LOCAL BODIES.

Taranaki Daily News, 17 September 1920, Page 4

LOANS FOR LOCAL BODIES.

NEW PLY.MOLTII SCiIKME. NOT APPROVED J!V PREMIER. Some time ago t|ie question of local bodies raising loans without adequate sinking fund:, was raised," and it was suggested that the operations of the State Advances Ollice should be uxtend«l to enable I lie "department to provide the money required by local bodies, for public works in the nature of wasting assets such as bridges, sewtrs, etc. The money would be lent by the department to the local bodies for lengthy period*, and would be repayable by equal hallyearly instalments of principal and interest combined, the loans being completely extinguished by the paunent of the last half-yearly instalment.' It was hoped/ in this u<a\| to prevent local bodies from piling up huge uuremunerJltive public debts and leaving posterity loaded with financial burdens" for which it had received no material beuelit. The general manager of the New Plymouth borough sent a circular to tiie various municipal councils in New Zealand, _ requesting their co-operation in bringing pressure to bear to induce the Government to extend the operations of the State Advances Office in the direction indicated. Thirty-three borough and city councils replied to the circular, 2S being- in favor of the proposal, three against, and two bad deferred consideration. The result was communicated to the Prime Minister, and he has since replied stating that at the present time it is impossible to comply with the request.