LOANS CONVERSION.

Auckland Star, Volume LXVI, Issue 49, 27 February 1935, Page 9

LOANS CONVERSION.

» NORTHCOTE PROPOSAL. "I am quite prepared to go on with the scheme, to be on the safe side," said the Mayor of Northcote, Mr. R. Martin, in .submitting loan conversion proposals before the Borough Council hist night. The amount of the consolidated loan to convert the various loans for which the whole borough was security would be £50,400. The annual interest and sinking fund charges prior to the statutory reduction of 2(1 per cent in interest totalled £f><> 10. These charges at present were £4807, and conversion would increase the fotnl to £4809, or £2 a year more. Though there appeared no saving against the 20 per cent interest reduction, the important point was that under the annual redemption system the loans would be repaid by 19(u, whereas, owing to reduced interest earnings, the present loans under existing conditions would not be redeemed on the due date. Included in the conversion loan total was £9900 owing for the first waterworks loan, raised in 190(i. before Northcote was a borough. There was no provision for the repayment of this loan, which was due in three years, and not a penny to pay it with. Application is to be made to the Treasury at Wellington for certain details, and further consideration will then be given the proposal.