BOROUGH SINKING FUNDS.

Auckland Star, Volume LXIII, Issue 194, 17 August 1932, Page 5

BOROUGH SINKING FUNDS.

CHANGE IN COMMISSIONERS. MOUNT ALBERT'S DECISION. It vvaa decided at the meeting of the Mount Albert Borough Council last night that the Public Trustee be removed from eonimissionorship in respect of all borough loans at present administered by him, except two small ones from the Government, and that the present private sinking fund commissioners be appointed to administer the same. This decision was arrived at as the result of a report presented to the council by Mr. R. Ferner, chairman of the finance committee, consequent upon a recent notification from the PublicTrustee that there would be a reduction in the rate of interest payable on sinking fund loans to 4 per cent. Mr. Ferner said that the loan commitments (all subsequent to 1025) of the borough in respect of which sinking funds were now administered by the Public Trustee amounted to £787,270, and that the accumulated funds in the hands' of the trustee at the end of March were £21.182. The total amount of, loans (prior to 1026) administered by private commissioners was £2C0,000, and the accumulated fmule and investments in their hands at the close of March last amounted to £22.989.

Sir. Ferner said that the interest payable by the Public Trustee had been twice reduced since December last —on the first occasion from 5-\ per cent to 4$ per cent, and on the second occasion to 4 per cent. As a result, the borough was hi a serious situation, since the effect would be to create a considerable shortage on the maturity of the loans administered by the Public Trustee. A reduction of Irj per cent .On the total sinking funds for the full commitment of £787!OOO would amount to a considerable sum per year, and would be. compounded yearly. The council had no appeal from the decision of the Public Trustee, but it had power to remove or suspend any commissioner appointed under the Act, and appoint another in his stead.

. In view of the fact that the private sinking fund com mission el's had proved very satisfactory, and were willing to assume the coinmissionership of the loans at present administered by the Public Trustee, the council decided to make the change.