FINANCE BILL.

Taranaki Daily News, 15 December 1921, Page 8

FINANCE BILL.

THE PRINCIPLE APPROVED. EGMONT COUNTY’S ATTITUDE. The executive committee of the New Zealand Counties’ Association forwarded to the Egmont County Council a copy of the Local Bodies’ Finance Bill and the comments or Mr. T. F. Martin (the Association’s counsel). The chairman considered that the Finance- Bill would hit local bodies very hard, and they should oppose it. It wo. Id cut j down their borrowing powers on overdraft by one third. It certainly gave them power to raise a loan to pay off their existing overdraft, but could they raise the money ? If they could not raise the money provision was given to pay off the overdraft in seven equal instalments. He thought they should instruct their members to oppose the Bill. Cr. Green thought the Bill was on the right lines, though possibly it might be too drastic. No doubt local bodies had been given too much power in the past in raising money by overdraft. If (hey could borrow to pay off the overdraft by a fixed loan they would be in a better position. Personally he did not think they si., aid ask (heir member io oppose it until they had gone into it thoroughly by appointing a committee. Cr. O’Brien agreed. He said the council had practically approved of the principle by agreeing to reduce their overdraft each year. He thought they could borrow money within the county to pay off their overdraft. Even if they paid 6 per cent, interest and 1 per cent, sinking fund, they would be better off than paying 7 per cent, interest on overdraft. They would wipe off their overdraft, and at the same time save* the payment of £llOO in interest. On the motion of Crs. O’Brien and Ferguson it was resolved “That, the council regards the Bill as a favorable-'one, providing the Government find the necessary money to enable councils to pay their overdraft off at a reasonable r??te of interest.”