OPPRESSIVE TERMS?
RETICULATION SINKING FUNDS POWER BOARD'S PROTEST. (From Our Own Correspondent.) PUKEKOHE, this day. Strong exception was taken by members of the Franklin Electric Power Board yesterday to a proposal by the Local Government Loans Board that loans for electric reticulation should be extinguished in 20 years, by the payment of a sinking fund of three per cent per annum.
It was considered that such a burden was far too heavy for power boards to carry for the first 10 years of their existence. The opinion was expressed that the action of the Loans Board was oppressive, and not calculated to make the Government's assets in its hydro scheme as fully profit-earning as they were likely to be under easier conditions of finance for power boards, such as the past rate of sinking rund, one per cent over 3b'£ years. A reply, accordingly, is t<> be sent.
The opinion was also expressed that there was no necessity to impose such stringent conditions in view of the fact that boards were compelled by law to constitute a reserve fund for the renewal of reticulation.
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Auckland Star, Volume LX, Issue 13, 16 January 1929, Page 3
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184OPPRESSIVE TERMS? Auckland Star, Volume LX, Issue 13, 16 January 1929, Page 3
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