The Temuka Leader SATURDAY, JUNE 26, 1886. LOCAL GOVERNMENT.

Temuka Leader, Issue 1524, 26 June 1886, Page 2

The Temuka Leader SATURDAY, JUNE 26, 1886. LOCAL GOVERNMENT.

We have just received tne two .Local Government Bills which are at present before Parliament. These ire entitled the “ Local Bodies Loans Bill,” and “ Government Loans to Local bodies Bill.” Wo have not had time to look into the details of these measures yet, bat it appears to ns that the Local Bodies Loans Bill is only a consolidation of the laws which are already iii existence, giving local bodies power to borrow, while the Government Loans to Local Bodies Bill is a subsitnte for the Hoads and Bridges Act repealed last session. There is very little new in the “Local Bodies Loans Bill,” because most ef the local bodies have borrowing powers already, and this measure only simplifies and elaborates existent laws. It contains, however, one provision which is a departure from the old state of things. It evidently contemplates throwing on the shoulders of the local bodies the onus of building schools. Clause 7 says : The local authority may borrow for tha purpose of erecting schools.” This appears to ns absurd. It would only increase the expenses ol erecting schools, while at the same time it would create a dual authority in ichool matters. Tha existing educational authorities and the local authority would undoubtedly come in conflict over the matter. For instance, a school would require tc be built, but neither the Education Boarf! nor the School Committee would hive any power to do anything in the matter. First, the local authority—that is the Town Board, Borough Council, Load Board, or whatever local body existed in the district—would have to consider whether the school was necessary, and having agreed that it was, a poll of the ratepayers would have to be taken to get their consent to the loon. Supposing the ratepayers refused to agree to the loan the school would not be built \ or supposing they did sanction it, they would havetopay. rates. The educational authorities would have, no say in the matter whatever, and there would snrelv be a difference of opinion arise as to the class of building that would be erected, and so forth, Where is the advantage in this? The ratepayers must pay for the school at any rate, and it is less expensive to get the money direct from the Government than to take this roundabout way of raising a loan. Besides, we are very much afraid that outlying districts would have to do without schools if they were dependent on the votes of the majority of ratepayers. The proposal is a miserable attempt at catting down the cost of our educational system. It is growing to enormous proportions; it is getting so immense that its very siucerest friends and admirers are ashamed of it. Its crushing weight is hanging like a loadstone round the neck of the Colonial Treasury and threatening to sink it, and this is a stupid attempt to lighten its burden, but we feel confident ihe good sense of the House will prevent it from passing. With regard to the Government Loans to Local Bodies Bill, we heartily agree with the principle involved in it. It pro poses thata certain sum shall beset apart by a vote of the General Assembly for the purpose of lending money to local bodies) at the role of i per cent.

Apparently it is impossible for us to g<~t on either pub'icly 01 privately without borrowing ; it seeniß to have lioconie pecond nature with us, and to stop it does not appear to come within the scope of our calculations. Ono is certain, and that is, that if tin? construction and maintenance of large public workß Rre thrown on the hands of, local bodies it v»ill frequently become necessary for tbera to borrow money to carry on these works. It this distiict we shall not want to borrow very much, if any at all, but all districts are not so well favored as this. We hav; our large works constructed, such as the Opihi and Rangitata bridges, and fur ther borrowing will not be required. But that is not the case in other places, and to them this act will be a great boon, as they can borrow cheaply and expeditiously from the Government. If this had been adopted several years aero the 6aving to the co'oi.y would have been very Jorgp. For instance, limam some time ago burrowed £60,000, for which it pays interest (including exchange) at the rate of 7£ per cent. Now, it Timarn got this money at 4 per cent., as proposed by this bill, the saving to the town would be the difference between 4 percent, and 7| per cent, per annum. It would mean a saving of £2IOO a year to the Borough of Timaru, and not only that, but this amount of money would be kept in the colony—in fact, in Timaru—instead of having to be sent to London, as is the case at present. Government can always borrow money at Home at 4 per cent ; local bodies mast give between 5 per cent, and 7 per cent, for it. It is better therefore that the Government should borrow the money and, lend it to the local bodies, than allow the local bodies themselves to borrow, for the Government can get the money cheaper than they can. On this ground we think the Government Loans to Local Bodies Bill a measure of great economic value, but we cannot understand why it was not embodied in the Local "Bodies Loan Bill. Both bills ! appear to be very similar in principle, the only apparent difference being that one enables the local bodies to borrow from Government, while the other gives power to borrow anywhere. It is doubtful whether it is wise to open the door too widely to local government borrowing ; there has been too much of it, and these measures encourage a continuance of the borrowing policy. However, it is not likely that local bodies will go into the London market to borrow money if they can get it from the Government. There is one thing which appears wrong : The Government propose to lend at 4 per cent., but that is less than tbey can borrow at when the cost of raising loans h considered, and consequently the colony must lose by the transaction. The Government ought to charge at least 4-| per cent., and at that price justice would be done to all parties.