OFFERS REJECTED.

Auckland Star, Volume LXVII, Issue 65, 17 March 1936, Page 11

OFFERS REJECTED.

SOUTHLAND POWER WORKS.

GOVERNMENT PROPOSALS.

(By Telegraph.—Press Association.)

INVERC'ARGILL, Monday.

Two oilers placed before the Southland Electric Power Board to-day by tlie Minister of Finance, the IJ/n. W. Nash, were rejected by the board after discussion in committee. The offers were: — (1) To take over the whole scheme on the basis of its liabilities; (2) to purchase the lieadworks at Monowai for £435,000 in New Zealand currency, and retail power to the board. Before making a decision on eitli=r offer the board asked the Minister for his intentions concerning the board's proposal that the sinking fund to be set aside over the remaining 18 years of the London loan should be graduated, and not at the llat rate of 4.2 per cent insisted on by the Government. Tho Minister did not view favourably the suggestion of a graduated sinking fund, and stressed the necessity for the money to repay the loan Doing in hand when tlie period expired. It was, he considered,. because this system had not been rigidly followed, with the increased provision necessary owing to fluctuating money values and the high exchange, that the board was in its present position.