IRRIGATION LOAN NEGOTIATIONS.

Press, Volume LV, Issue 10032, 10 May 1898, Page 5

IRRIGATION LOAN NEGOTIATIONS.

Some correspondence has passed between the Government and the Ashburton County Council in connection with loans for irrigation works. The Council wrote to the Colonial Secretary inquiring on what terms the Government would advance £26,000 for irrigation purposes in the Ruapuna and HindsRangitata districts. In reply the Colonial Treasurer wrote that he would be prepared, under the Loans to Local Bodies Act, to receive applications for loans, but that it must be understood that not more than £6000 could be paid on account of the loan in one year, and that he could not agree to make the loun greater' than £12,000 for two successive years. This would not, however, prevent a further £12,000 being raised at the end of two years. The Chairman of the Council then wrote , to the Premier stating that £46,000 would be wanted within twelve months at most, and asking the Government to modify its offer. In reply he received a letter regretting that the Government could not modify its terms, and stating that the letter had been referred to the Insurance Department with a view of deciding whether it would be a suitable investment for the funds of the Department, and that a reply had been received that the funds could be more profitably invested elsewhere.