POWER BOARD'S LOAN PROPOSAL.

Ashburton Guardian, Volume 48, Issue 155, 12 April 1928, Page 4

POWER BOARD'S LOAN PROPOSAL.

RATEPAYERS DOUBLY SAFE-, GUARDED. ( How carefully the ratepayers' interests have been safeguarded in the Ashburton Power Board's £90,000 Loan Proposal was shown at the series or meetings to explain the Board's proposed development of its system. . The Board estimated its loan fromva careful sludv of past revenue and from the expected heavy; increase in tne use of electricity within the next few years. The Board's complete proposal was submitted to the Local Government Loans Board and as a result of a complete investigation afc two meetings, ol tne Board's position, the Loan was officially approved. Sanction by the Loans Board is an assurance that the .Loan has bee*n accented as necessary and'. that the Board is in a financial position to carry it comfortably. & .As a second safeguard of the ratepavers' interests the Local Government Loans Board exercises continuing control over the Loam Before spending more than £30,000 of the Loan the Board will applv to) the Loans Board for a further sanction. Proof of the Power Board's .present sound financial policy is the growth of its Reserve Funds to nearly £IO,OOO in Sinking Fund and £13,000 in renewals and contingencies. Almost the whole of this money is invested in Local Body De-. bentures yielding \ per cent, higher rate of interest than the Board paid on its loan at that time. In the past the Board has not taken one penny from the ratepayers in the form of rates and given normal development will not do so in the future. With its equipment reinforced to carry the increasing electrical loads, the Board will continue to pay all expensesfr.om its sale of electricity! and can eventually giva its consumers the benefits of this ' nproved position in theform of still lower rates for current. — Advt.