B.—3

1939. NEW ZEALAND.

LOCAL GOVERNMENT LOANS BOARD. REVIEW OF OPERATIONS FOR THE YEAR ENDED 31st MARCH, 1939.

Presented to both Houses of the General Assembly by Command of His Excellency.

The Local Government Loans Board, constituted under the Local Government Loans Board Act, 1926, comprises seven members, of whom two are officers of the Public Service, being the persons for the time being holding the offices of Secretary to the Treasury and Engineer-in-Chief of the Public Works Department The remaining five members are appointed by the Governor-General to hold office during his pleasure. In general the Act provides that it shall not be lawful for any local authority to borrow any money without the precedent consent of the Governor-General m Council given after compliance with the provisions of the Act, which further provides that every local authority which proposes to borrow any moneys, otherwise than in anticipation of its revenues, shall submit to the Local Government Loans Board an application and statement giving such information and particulars as may be required by the Board. After proper investigation the Loans Board may : («) Sanction the proposal, either wholly or in part, and unconditionally or subject to such terms, conditions, and stipulations as it thinks fit ; or ... lb) Require the local body to divide the loan proposal into constituent items to the intent that the ratepayers may vote separately on each item; or . (c) Refer the application back to the applicant local authority lor modification or amendment; or (d) Decline to sanction the proposed loan. The Board has been in existence since 1927, and the report of its operations for the year ended 31st March, 1939, is appended During the year proposals to borrow involving £5,138,917 came under the purview of the Board, and of this amount £4,875,584 represented new applications and the balance of £263,333 amounts previously referred back or declined. Of the total amount considered, new loans and renewal loans totalling £3,013,872 and £1,188,525 respectively were sanctioned, whilst £936,520 was referred back for reconsideration or declined.