B—l7

The diversion of the unexpended balances of loans amounting to £458 19s. was approved under section 47 of the Finance Act, 1927, and approval was given under section 20 of the Finance Act, 1934, to the use of capital moneys amounting to £11,502 16s. 3d. The amount sanctioned for new works shows a substantial increase, and borrowing by Hospital Boards was again very heavy, the amount sanctioned being exceeded only in 1942-43, when the figure was £996,250, as against £953,730 last year. The supply of electricity has called for heavy capital expenditure and approximately twice the amount authorized in 1944-45 was sanctioned. Despite the electricity shortage in the North Island, new building, opening up of land for development, and increased demand by individual consumers have made it necessary for Electric-power Boards to extend and increase the carrying-capacity of reticulation lines. The amount sanctioned for housing shows a substantial decrease, probably accounted for by the acute shortage of materials. A noteworthy feature of the housing-loan proposals formulated during the year was the extent to which local authorities exercised the powers given by the Local Authorities (Temporary Housing) Emergency Regulations 1944, which authorize the raising of loans by special order without a poll of the ratepayers for the purpose of providing, with the consent of the Minister of Finance, temporary accommodation for persons awaiting homes. During the year, loans totalling £177,100 were sanctioned for this purpose. The amount referred back during the year (£666,000) was much larger than usual and included proposed loans for hospital buildings amounting to £542,000. In these cases the Board was of the opinion that the proposals could with advantage be reconsidered by the respective Hospital Boards with a view to reducing costs and thus lightening the levies on the contributing local authorities. A further safeguard to the expenditure of loan-moneys by local authorities has been introduced by the Engineers' Registration Amendment Act, 1944, which came into force on the Ist April, 1945. That Act provides that loan-moneys may be expended only under the supervision of an engineer who is the holder of an annual practising certificate issued under the Act. The Board acted in conjunction with the Engineers' Registration' Board in drawing the attention of local authorities to the provisions of the Act.

Applications dealt with by the Board have been as follows :

2

—- Total Applications. Sancti New Works. .onecl. Redemptions. £ £ £ 1927-28 4,636,649 3,212,185 1,048,796 1928-29 6,007,045 3,866,551 809,221 1929-30 4,218,730 3,563,842 967,875 1930-31 3,840,505 1,766,256 838,901 1931-32 3,412,365 781,195 2,483,810 1932-33 2,951,645 406,521 2,348,231 1933-34 3,884,132 917,560 2,744,245 1934-35 3,859,363 1,585,440 2,379,955 1935-36 4,061,076 1,550,690 2,051,790 1936-37 .. .. 2,804,308 2,411,358 430,313 ■ ; ... 3,362,173 3,098,445 122,758 1938-39. 5,138,917 3,013,872 1,188,525 1939-40 .. .. -O,. 2,674,450 1,701,460 355,800 1940-41 5,336,640 2,709,505 1,602,670 1941-42 4,589,653 1,898,096 1,391,728 1942-43 3,336,770 1,497,120 1,121,000 1943-44 3,999,665 1,349,335 2,359,755 1944-45 3,242,327 1,737,807 698,120 1945-46 3,497,820 2,643,935 243,235 74,854,233 39,711,173 64,8S 25,186,728 17,901