Local Government (Further Amendment) Act 1935 (NSW)

LOCAL GOVERNMENT (FURTHER AMENDMENT) ACT.

Act No. 50, 1935.

An Act to make further provisions in relation to the powers, authorities, duties and functions of municipal, shire and county councils; to make certain contingent appropriations out of the Consolidated Revenue Fund; to validate certain matters; for these and other purposes to amend the Local Government Act, 1919, the Country Towns Water Supply, Sewerage and Drainage (Reduction of Debts) Act, 1934, and certain other Acts; and for purposes connected therewith. [Assented to, 16th December, 1935.]

BE it enacted by the King 's Most Excellent Majesty, b y and with t he advice and concent of t he Legis­

lative Council and Legislative Assembly of New South Wales in Par l iament assembled, and b y the au thor i ty of the same, as follows :—

1. (1) This Act m a y be cited as the " L o c a l Govern­

ment ( F u r t h e r Amendment ) Act, 1935 ," and shall be

development

read and construed with the Local Government Act, 1919,

as amended by subsequent Acts .

(2) The Local Government Act, 1919, as so
amended, is in this Act re fer red to as the P r inc ipa l Act.

2.   The Principal Act is amended—

(a) (i) by inser t ing next af ter p a r a g r a p h (g) of

section one hund red and seventy-seven the

following new p a r a g r a p h s : —

(g1) the erection, construct ion or ca r ry ing out of works of d ra inage , s to rmwate r channels, public ba ths , works for the

development of tour is t traffic, works for the improvement and embellish­ ment of public reserves and places of public recreat ion or resor t , br idges and roads of access into sett led dis­ t r ic t s , and works for the purpose of the establ ishment or extension of elec­ t r ic i ty works and par t icu la r ly works for extending electricity works t rad­ ing under tak ings into r u r a l dis t r ic ts , and the purchase of necessary machinery and equipment for such

pu rposes ; or

(g2) the erection, construct ion and carry­
ing out of works of wa te r supply or

sewerage and works connected there­

wi th ; or

(g3) the provis ion of funds to meet the cost of construct ion by the Metro­ poli tan W a t e r , Sewerage, and Drain­ age B oa r d or the H u n t e r Distr ic t W a t e r Supply and Sewerage Board of wa te r mains or sewers and works

connected the rewi th ; or

(g4) the purchase of tools and mater ia l s required by the council for or in con­ nection with any work to be carr ied out by the council in pursuance of the Preven t ion and Belief of Unem­ ployment Act, 1930-1935, or any Act amending such Act, under agreement

with the Minis ter ; or

(ii)   by inserting at the end of the same section the following new subsections:—

(2) The approva l of the Governor of an o rd ina ry loan for any of the purposes men­ tioned in p a r a g r a p h (g1) or p a r a g r a p h (g2) of subsection one of this section shall not be given unless the Minis ter by notice pub­ lished in the Gazette has indicated tha t the purpose is one in respect of which a supple­ m e n t a r y advance will be made under sub­ section (2A) of section five hundred and

thir ty-nine

th i r ty-nine of this Act or in respect of which an agreement will be entered into by the T r e a s u r e r under subsection one of section

493A of this Act.

No such notice in respect of a purpose ment ioned in p a r a g r a p h (g2) of subsection one of this section shall be published unless the proposa ls for the erection, construct ion and ca r ry ing out of the works have been considered by the Loans and Advances Ad­ visory Committee and tha t Committee has made a r epo r t to the Minis ter thereon.

(3) The approva l of the Governor of an o rd ina ry loan for any of the purposes men­ t ioned in p a r a g r a p h (g3) of subsection one of this section shall not be given unless the council has first entered into an agreement with the Metropol i tan W a t e r , Sewerage,

and Dra inage B o a r d or the H u n t e r Dis t r ic t

W a t e r Supply and Sewerage B o a r d pur ­ suan t to subsection (2A) of section four hun­ d red and ninety- three of th is Act.

(4) The approva l of the Governor of an o rd ina ry loan for any of the purposes men­ t ioned in p a r a g r a p h (g1) , p a r a g r a p h (g2) , p a r a g r a p h (g3) , or p a r a g r a p h (g4) of sub­ section one of this section shall not be given af ter the th i r t ie th day of J u n e , one thou­

sand nine hundred and t h i r t y - e i g h t .

(5) The approva l of the Governor of an

o rd ina ry loan for any of the purposes men­

t ioned in p a r a g r a p h (g1) , p a r a g r a p h (g2) ,

p a r a g r a p h (g3) or p a r a g r a p h (g4) of sub­ section one of this section shall, for the pu r ­ poses of any securi ty in respect of tha t loan, be conclusive evidence t ha t the council is au thor ised to bor row the amount ment ioned in the ins t rument of approva l .

(b) (i) by omit t ing subsection one of section one

hund red and seventy-eight ;

(ii)   by omitting from subsection four of the same section all words af ter the word " p r e ­ s c r i b e d " ;

(c).

(c)	by omitting subsection seven of section one hun­ dred and e ighty ;
(d)	by omitting section one hundred and eighty-five and by inser t ing in lieu thereof the following
new sect ion:—

185. (1) E v e r y renewal or o rd ina ry or

special loan shall be ra ised on such t e rms as

the Governor may approve .

( 2 ) Wi thou t prejudice to the

genera l i ty of subsection one of th is sec­ tion, the Governor may approve of te rms which provide—

(a) (i) for payment of year ly or half-

year ly ins ta lments , each of pr in­

cipal and interes t combined,

over a period of y e a r s ; or

(ii)   for repayment of principal in year ly or half-yearly ins ta lments over a per iod of years , and pay­ ment of in teres t with year ly or half-yearly res t s on the balance of pr incipal for the t ime being

unpa id ; or

(iii)   for payment of interest only, with res t s a t such in tervals as may be specified over a specified period, and thereaf ter for pay­ ment of ins ta lments in the man­ ner specified in s u b p a r a g r a p h

( i ) of this p a r a g r a p h or for

repayment of pr incipal and pay­

ment of in teres t in the manne r

specified in s u b p a r a g r a p h (ii) of

this p a r a g r a p h ; or

(iv)   for repayment of principal in one sum at the end of a per iod of yea rs , and payment of in teres t with year ly or half-yearly r e s t s :

(b) for the repayment of principal or of the balance of pr incipal , as the case may be, on the da te upon which any payment of in teres t or any instal­ ment, as the case m a y be, falls d u e ;

T (c)

(c)	for the taking up of the loan by the council in ins ta lments a n d for any consequential ad jus tment of the
t e rms of r epayment .

(e) ( i) by inser t ing next af ter subsection two of section four hundred and ninety- three the following new subsect ion:—

(2A) (a ) W h e r e , for the benefit of a p a r t of i ts a rea , the council deems it advisable t h a t the B oa rd should construct wa te r mains or sewers, and works connected therewith, a n d supply wa te r or c a r r y off sewage, the council m a y enter into an agreement wi th the B oa r d under this subsection.

(b) A n agreement under this sub­ section shall provide for the construct ion of the works by the B oa rd out of moneys p ro ­ vided by the council (being moneys bor­ rowed for the purpose by way of o rd ina ry loan) and shall include—

(i)    an under t ak ing by the B o a r d to meet , to the extent of the net collectable income of the B oa r d in any year , the l iabil i ty of the council for payments on account of the loan falling due in

t ha t y e a r ;

(ii)   an undertaking by the council to pay to the B o a r d the deficiency (if any) of the collectable income of the B oa r d in any yea r in re la t ion to the p ropor ­

t ion of the working expenses of the

B oa rd for t ha t yea r which a re p ro ­ per ly chargeable in respect of the works and services to which the agreement relates plus in te res t for t ha t yea r a t the r a t e agreed upon, upon the amount (if any) by which the capi ta l cost of the works exceeds the amount provided by the council;

(iii)    provis ion for ascer ta in ing the amount of any such deficiency.

The

The agreement m a y also include such other t e rms , conditions or provis ions not inconsistent with this Act as the council and the Board may think fit.

(c) I n this subsection—

"Col lectable income of the B o a r d " means

the moneys payable to the Boa r d in any yea r whether by way of ra tes or charges or otherwise howsoever in respect of the works and services to which the

agreement re la tes .

" N e t collectable income of the B o a r d "

means the collectable income of the

Boa rd less—

(i)   the proportion of the working expenses of the Boa r d for the year , which a r e p roper ly charge­ able in respect of such works and

services ; and

(ii)   interest for the year at the rate agreed upon, upon the amount (if any) by which the capi ta l cost of the works exceeds the amount provided by the council.

" B o a r d " means—

(i)   in relation to water mains or sewers or works connected there­ with within the a rea of opera­ tions of the Metropol i tan "Water, Sewerage, and Dra inage B o a r d

—the Metropol i tan Wate r ,

Sewerage, and Dra inage B o a r d ;

(ii)   in relation to water mains or sewers or works connected there­ with within any wa te r distr ict or sewerage dis t r ic t as respectively defined in the H u n t e r Dis t r ic t W a t e r and Sewerage Act, 1892- 1928—the H u n t e r Dis t r ic t W a t e r Supply and Sewerage Board .

(ii)   by omitting from subsection three of the same section the words " s u c h a g r e e m e n t " where firstly occurring and by inser t ing in

lieu

lieu thereof the words " a n y agreement made p u r s u a n t to subsection one or subsec­

t ion two of this s e c t i o n " ;

(iii)   by inserting next after the same subsection the following new subsect ion:—

(3A) T O provide for the payment of any such sums as a re re fer red to in subpara ­ g r a p h (ii) of p a r a g r a p h (b) of subsection (2A) of this section, the council shall levy a local r a t e on the lands ra tab le by the B o a r d in respect of the works and services t o which the agreement under which such sums a re payable re la tes or p a y the sums out of the general fund;

(iv)   by inserting in subsection four of the same section af ter the Words " u n d e r this sec­ t i o n " the words " o r payable in respect of an under tak ing refer red to in s u b p a r a g r a p h

(ii) of p a r a g r a p h (b) of subsection (2A) of

this section.

(f) by inser t ing next af ter section four hund red

and ninety- three the following new sect ion:— .
493A. (1) In any case where a council bo r rows
money it shall be lawful for the T rea su re r , on
the recommendat ion of the Minister , to en t e r
into an agreement with the council to p a y to t he
council, in each yea r dur ing such per iod as m a y
be specified in the recommendat ion, the sum
specified in the recommendat ion for or t o w a r d s

meet ing the liabili ty of the council in respect

of such borrowing.

The agreement m a y include such t e rms , con­ ditions or provis ions not inconsistent wi th th i s Act as the Minis ter may recommend and m a y , if the Minis ter so recommends, provide for t he repayment , in ins ta lments or otherwise, of any sums pa id to the council thereunder . (2) Wi thou t prejudice to the genera l i ty

of subsection one of this section in any case where the r a t e of in te res t on moneys borrowed by a council by way of ordinary loan for any of the purposes mentioned in p a r a g r a p h (g2) of subsection one of section one hundred and

seventy-seven

seventy-seven of this Act, or by way of renewal lean for the purpose of r epay ing or renewing any s u c h o r d i n a r y loan or any ea r l i e r renewal loan in r e spec t thereof and of paying the ex- penses thereof exceeds three and one-half pe r centum pe r annum, it shall be lawful for the T r e a s u r e r to enter into an agreement with the council to pay to the council in each year a sum equivalent to the difference between the amount payable as in teres t for tha t year and the amount which would have been so payable if the r a t e of in teres t were three and one-half pe r centum per annum.

(3) Such sums as from t ime to t ime become due and payable by the T r e a s u r e r under any agreement author ised b y this section m a y be pa id out of fee Consolidated Revenue F u n d without fu r ther appropr ia t ion t h a n this Act a n d / o r out of moneys provided by the Par l i a ­ ment of the Commonwealth of Aus t ra l i a upon t e rms which are not inconsistent .with the appli­ cation of such moneys for the purposes of this section.
(4) A recommendat ion shall not be
made by the Minis ter unde r subsection one of

this section af ter the th i r t ie th day of June , one

thousand nine hundred and thir ty-eight .

(g) (i) by inser t ing in subsection two of section
five hundred and thir ty-nine af ter the word

" p u r p o s e " the words " o r from moneys

made available to the S ta t e of New South

Wales by the P a r l i a m e n t of the Common­

wealth of Aus t ra l i a upon t e rms which are not inconsistent with the applicat ion of such

moneys for the p u r p o s e " ;

(ii)   by inserting in the same subsection after

the words " t o councils f o r " the words " o r

in connection w i t h " ;

(iii)   by inserting at the end of the same sub­ section the words " o r for the provis ion of services or for or towards the pay­ ment of in teres t on moneys borrowed by councils for any of such purposes or

for

for or towards meet ing any guaran tee given by a council under subsection one or subsection two of section four hun­ dred and ninety- three of this Act, or for or towards meet ing the liability of a council in respect of an under t ak ing re fe r red to in s u b p a r a g r a p h (ii) of p a r a g r a p h (b) of subsection (2A) of tha t section, or for or towards meet ing the liability of a council in respect of a bor rowing by way of ordi­ n a r y loan for any of the purposes re fe r red to in p a r a g r a p h (g3) of subsection one of section one hundred and seventy-seven of

th is Ac t ;

(iv)   by inserting next after the same subsection the following new subsection:—

(2A) The Minis ter may make advances to councils to supplement moneys bor rowed for any of the purposes ment ioned in pa ra ­ g r a p h (g1) or p a r a g r a p h (g2) of subsection one of section one hundred and seventy- seven of this Act.

A n y such advance shall be made out of moneys provided by Pa r l i amen t for the purpose or out of moneys made available to the S ta te of New South Wales by the P a r l i a m e n t of the Commonwealth of Aus ­ t r a l i a upon te rms which a re not inconsistent wi th the applicat ion of such moneys for the purposes of this subsection.

3. The P r inc ipa l Act is fu r ther amended—

(a)	by omitting from subsection one of section one hundred and twenty-one the word " w h i c h " and by inser t ing in lieu thereof the words " o r for or towards repay ing with in teres t any advance made by the Minis ter in connection with the execution of any work or service where, in e i ther
case, such work or s e r v i c e " ;
(b)	by inserting at the end of subsection one of sec­ t ion three hundred and eighty-two the words " P r o v i d e d tha t the council shall not, wi thout the consent of the Minister , extend any such works with respect to which a debt is owing to the

(c)

(c)	by inserting next after section four hundred the following new Divis ion:—
DIVISION GA.—Loans and Advances Advisory

Committee.

400A. (1) There shall be const i tuted a Loans and Advances Advisory Committee (in th is Division re fe r red to as the " C o m m i t t e e " ) which mall have and m a y exercise and per form the powers , authori t ies , duties and functions by this Division conferred and imposed on the Com­ mit tee .

(2) The Committee shall consist of th ree members who shall be appoin ted by the Governor .

(3) One of such members shall, in and by his appoin tment be the cha i rman of the Com­ mit tee , and another of such persons shall, in and by his appointment , be the deputy-chai rman of the Committee.

(4) The provis ions of the Public Ser­ vice Act, 1902, or of any Act amending tha t Act, shall not apply to the appoin tment of members of the Committee, and such members shall not in the i r capaci ty as members of the Committee, be subject to the provisions of any such Act.

(5) Any two members of the Committee shall form a quorum and any meet ing a t which a quorum is p resen t shall be competent to t r ansac t any business of the Committee.

(6) The procedure for calling meet ings

and the conduct of business a t meet ings of the Committee shall, subject to any ordinance made in t ha t behalf, be as determined by the Com­ mit tee .

(7) The Committee shall keep minutes

of all i ts proceedings.
(8) The Committee shall furnish the
Minis ter with full information on any business of
the Committee which the Minis ter m a y require .
(9)

(9) (a) The Governor m a y remove any member of the Committee appoin ted under this section.

(b) If any member of the Committee

(i) d ies ; or

(ii)  resigns his office by writing under his hand addressed to the Governor ; or

(iii)  is absent from three consecutive meet­ ings of the Committee—except wi th leave g ran ted by the Commit tee ; or

(iv) is removed by the Governor,

his office as a member shall thereupon become vacant and the Governor may appoint a person to take the place of the member whose office has

become vacant .

(10) No act or proceeding of the Com­ mit tee shall be inval idated or pre judiced by reason only of the fact tha t a t the time such act or proceeding was done taken or commenced there was a vacancy in the office of any one mem­ ber.

(11) A member of the Committee shall not be entit led to receive any salary, fee, allow­ ance or remunera t ion for his services as a mem­ ber of the Committee, but shall be enti t led to receive t ravel l ing expenses a t a r a t e prescr ibed.

(12) A t any meet ing of the Committee the

chai rman, or in his absence the deputy-chai rman,

shall pres ide .

The cha i rman, or in his absence the deputy-

chai rman, shall have a del iberat ive vote, and, if

the vot ing on any quest ion is equal, shall have

a second or cast ing vote,

(13) Upon the th i r t ie th day of J u n e , one thousand nine hundred and thi r ty-e ight the Committee shall be dissolved and the members of the Committee shall cease to hold office as

such members .

400B. (1) I t shall be the duty of the Committee to consider and furnish r epor t s to the Minis ter wi th respect to proposa ls for the erection,

construct ion

construct ion and ca r ry ing out of works of water supply or sewerage and works con­ nected therewith under conditions provid­ ing for the paymen t of the cost, thereof from moneys borrowed by why of ordin­ a r y loan by the councils concerned and from supplementa ry advances made by the Minister under subsection (2A) of section five hundred and thir ty-nine of this Act.

(2) I n each such repor t the Committee

shall set out—

(a)	the es t imated cost of the w or ks ;
(b)	the amount, calculated in the manner set out in subsection three of this sec­ tion, which could be provided out of moneys borrowed by the council.

( 3 ) The following provis ions shall have

effect wi th respect to the calculation of the amount which could be provided out of moneys borrowed by the council:—

(a) The Committee shall es t imate—

(i)   upon what portion of the area of the council a local r a t e might be made and levied in respect of the works when constructed or ex­ tended ;

(ii)   the population of such portion

of the a r e a ;

(iii)	the sum which would be produced
annual ly by r a t e s and charges
equivalent to an annual charge of twenty-five shillings (in the case of works of wa te r supply) a n d / o r of twenty-one shillings (in the case of works of sewer­ age) pe r head of such popula­ tion ;
(iv)	the probable average annual cost of maintenance and management of the works over the per iod not

exceeding

exceeding forty-five yea r s dur­ ing which the loan would be repayable .

(b) The Committee shall calculate the amount which, together with in teres t at the r a t e of th ree and one-half pe r cen­ tum per annum, would be repaid dur ing such per iod by equal consecutive half- year ly ins ta lments each equal to half the difference between the annual sum es t imated in accordance with sub­ p a r a g r a p h (iii) of p a r a g r a p h (a) of this subsection and the probable aver­ age annual cost es t imated in accordance wi th s u b p a r a g r a p h (iv) of the same p a r a g r a p h .

(c) The amount calculated in accordance with p a r a g r a p h (b) of th is subsection shall be the amount which could be pro­ vided out of moneys borrowed by the council.

(d)	by inserting in subsection one of section four
hundred and ninety, af ter the word " m a y , "
where firstly occurring, the words " w i t h i n or
outside i ts a r e a . "

4.     The Pr inc ipa l Act is fur ther amended by inser t ing

next after section 422A the following new section:—

422B. (1) Where , for the benefit of a p a r t of i t s a rea , the council deems it advisable tha t a person who has entered into an agreement with the council under section four hundred and twenty of this Act re la t ing to the supply of electric cur ren t to the public, should extend a main line or b ranch line of supply , the council may, in any case where such per­ son is not bound under the agreement to make such extension, request the Minis ter to make a recom­ mendat ion under this section. (2) The Minis ter may thereupon recom­

mend the T r e a s u r e r to under take to pay to such

person

person in each y e a r du r ing such per iod as m a y be specified a specified sum for or towards meet ing any annual liability of such person incurred in connec­ tion with such extension, and may fur ther recom­ mend tha t such under tak ing shall impose such t e rms a n d conditions as may be specified.

(3) I t shall be lawful for the T r e a s u r e r to

give an under tak ing in accordance wi th the recom­

mendat ion.

Such sums as from time to t ime become due and payable by the T r e a s u r e r under any such under tak ing

may be paid out of the C o n s o l i d a t e d Revenue F u n d

without fur ther appropr ia t ion than this Act a n d / o r out of moneys provided by the Pa r l i amen t of the Commonwealth of Aus t ra l i a upon t e rms which a r e not inconsistent with the applicat ion of such moneys for the purposes of this section.

(4) The T r e a s u r e r may, if the Minis ter so

recommends, require such person to repay, in instal­ ments or otherwise, any sums paid to him p u r s u a n t to the under tak ing and to give securi ty for such repayments .

F o r the purpose of any such securi ty the

T r e a s u r e r is hereby declared to be a corporat ion

sole under the name of " T h e Colonial T r e a s u r e r " and by that name shall have perpe tua l succession and an official seal and may sue and be sued and may take all legal proceedings, and may take and hold any p rope r ty real or personal .

Where any p rope r ty or in teres t therein or charge thereon is vested in or acquired by the Colonial T r e a s u r e r as such corporat ion sole the same shall, unless otherwise disposed of by the person for the t ime being holding the office of Colonial T reasu re r , pass and devolve to and vest in his successors in tha t office.

(5) A recommendat ion shall not be made by the Minister under subsection two of this section af ter the th i r t ie th day of June , one thousand nine hundred and thir ty-eight .

5. (1) The Count ry Towns "Water Supply, Sewerage, and Dra inage (Reduct ion of Debts) Act, 1934, is amended—

(a) by omitting subsection one of section six and by inser t ing in lieu thereof the following new sub­ section :—

(1) I n any case where the r a t e of in te res t payable by a council to the Crown or to the Colonial T r e a s u r e r on a debt owing under any Act in respect of the construct ion of works of wa te r supply, sewerage or d ra inage , exceeds three and one-half pe r centum per annum, such ra t e of in te res t is hereby reduced to three and one-half pe r centum pe r annum.

W h e r e any such debt is payable by ins ta l ­ ments of pr inc ipal and in teres t combined the amount of any such ins ta lment shall be the amount which would be payable if the r a t e of in te res t were three and one-half per centum p e r annum.

(b) by inserting next after subsection three of the Same section the following new subsect ion:—

(4) The amounts to be debited for in teres t to

the J u n e e W a t e r Supply Admin is t ra t ion

Account p u r s u a n t to section th i r teen of the

J u n e e W a t e r Supply Admin is t ra t ion Acts , 1915-1927, shall be calculated a t the r a t e of th ree and one-half pe r centum pe r annum.

(2) Subsection one of this section shall be deemed

to have commenced on the first day of J a n u a r y , one

thousand nine hundred and thirty-five. C R O W N