OLD LIABILITY.

Taranaki Daily News, 16 June 1922, Page 5

OLD LIABILITY.

LOCAL BODIES’ FINANCE. JOINT LOAN PROPOSAL, PLAN NOT FAVORED. By Telegraph.—Press Association. Wellington, June 15. A proposal that the local bodies of New Zealand should combine in trying to obtain a joint loan for the purpose of paying off their liabilities existing as at March 31, 1922, was discussed at a conferencce of representatives of borough councils held here to-day. The conference was convened by the Patea Borough Council, and the Mayor of Patea presided. Local bodies report- , ed to favour the scheme, with the amount, of antecedent liabilities are Patea, £7200; Darga ville, £13,764; Petone, £16,357; Te Kuiti, £12,196; Feilding, £9545; Eltham, £7258; Te Aroha, £7000; Pukekohe, £2901; Westport, £4400; Waihi, £6390; Green Island. £l3OO.

The bodies represented at the conference were: Patea, Dargaville, Petone, Westport and Te Kuiti.

The chairman said the Government had decided that local bodies should henceforth live within their means, but had taken no action in that respect at the worst period in the country’s history. It was stated there was no chance of the Government guaranteeing any local, body’s loan, but that the Public Trust Office would he . idy to assist in advancing money to allow local bodies to meet antecedent liabilities.

The conference adjourned in order that representatives of local bodies might interview the manager of the Bank of Niew Zealand. Wellington, Last Night. When the conference resumed it was reported that as a result of information gained from the general manager of the Bank of New Zealand as to th© high rates of interest ruling in London, there was nothing to gain' by going on the London market for a combined loan, which would be for less than £lOO,OOO. Mr. Hornblow thought the best thing to be done was to close the conference Jtrith a view to local bodies taking individual action to borrow from the Public Trust Office. Mr. McEwan said it was apparent that the most important local bodies were going to aet on their own, and therefore it was useless talking about combined action. Mr. Hornblow’s motion was carried and the conference closed.