LOANS TO LOCAL BODIES.

Wairarapa Daily Times, Volume VIII, Issue 2362, 2 August 1886, Page 2

LOANS TO LOCAL BODIES.

It wil bo remembered that in the report of tho last meeting of the Masterton Road .Board we published a resolution proposed by Warden R. D. Dag? in reference to the Roads and Bridges Constiuctioii Loans. This resolution in accordance with instructions was forwarded to the Premier, Sir Robert Stout, the member for North Wairarapa Mr Beetham, and others, At tho meeting of tno Road Board on Saturday the following reply was read

1 duly received your letter forwarding the resolution of your Board relative to the extension of time for re-paymont of loans raised under the Roads and Bridges Construction Act, 1882. lam glad to be able to inform you that a few of us interested in consorvin? the interest of local bodies have succeeded in inducing the Government to adopt proposals that will in my opinion meet very fairly the evils that your Board alludes to, I onelose the proposed clauses referred to, which will explain themselves. 1 have numbered these clauses, I regret to have to draw your atteutiou to proposal No, 2, that will, with respect to any now loans raised under the provisions of the now measures, repeal the" Crown and Native Lands Rating Act, 1852." 1, Mr Buchanan, and others interested in the wellbeing of local bodies in the North Island, strongly resisted this clause, but unfortunately without effect. 1 at first anticipated that this provision would prevent our local bodies from taking advantage of the No, 1 provisions, but careful perusal has induced me to believe that tho actuarial investigation that must take place before tho loan could be converted under the new Act would, if correctly conducted, duly estimate the gain to the Government and the consequent loss to the local bodies in tho value <>f the original loan. There may, of course, be amendments yet that may chango materially those provisions, but I believe that no material change will be made —I am, &c., Geokge Beetham. The following are the clauses referred to

l, "In order to afford relief to local bodies which have issued debentures under " The Roads and Bridges Construction Act, 1882," the Treasurer may compound with any such local body, in respact of any such debentures falling due after this Act comes into operation, by luscortaiuiiu; their present valne computed on the basis of four pounds ten shillings per centum. "The Treasurer may surrender the debentures he hokl3 under the said Act, and accept in place tlieof debentures issued by the local authority under the eleventh and twelfth sections of this Act. " Every such local authority shall have full power to avail itself of the provisions of this Act, and may execute and issue such new debentures ot do such other acts as shall be necessary to convert their original liability into a liability under this Act.

" All debentures issued ill lieu of debentures made under "The Roads and Bridges Construction Act, 1882," shall be subject to the same terms and conditions in all respects at bebentures made and issued under this Act, as effectually as if made in respect of a loan granted under its provisions, and such debentures may ko dealt with or disposed of under the provisions of this act accordingly. ''All moneys arising from any composition or arrangement in respect of debentures outstanding under "the Roads ■rod Bridges Act, 1882," and converted as aforesaid into a liability under this Act, ortho procoeds of debentures received from any local authority in respect thereof, or of any debentures issued in substitution thereof, shall belong to and form part of the Public Works Fund,"

2. " Where a local authority desires to raise money by way of loan fioni the Government under any act of the General Assembly authorizing Buch loans, no Crown lands or Native lands within the meaning of "The Crown and Native Lands Rating Act, 1882," or any amendment thereof, upon which rates are or would be payable by the Crown or the Native owners, shall be liable for any special rate to be levied as the wholo or part of the security for such loan,"