COLERIDGE INTEREST RATES.

Press, Volume LX, Issue 18220, 3 November 1924, Page 8

COLERIDGE INTEREST RATES.

THE MAYOR'S REMARKS. Commenting on the question of the < Government's new method of charging a flat rate of interest on hydro-electric undertakings, which was adversely criticised in Parliament on Friday by ' some of the Canterbury members, the ' Mayor of Christchurt-h (Mr J. A. Pleshert said on Saturday that he was '. surprised at the Government's adop- . tion of tliis method. To strike an average rate of interest charges was hardly a fair thing. Ihe Minister had ' said tiiat each installation would stand ' on its own footing, and, if i ! t paid, the < price of current to the consumers could ! be reduced. The Lake Coleridge undertaking should bear its own charges. ' Christchurch was the pioneer, and " if money was cheaper when the scheme ' was inaugurated at Coleridge, Christ- 1 church should get the benefit, for the city suffered sufficient disability already, chiefly owing to its distance i from its port. i In reply io a question the Mayor said that th:} Council had objected when it had been first proposed to pool hydro-electricity finances, and tho i .Minister had made it clear that if Cole- ; ridge were paying its way and showing ( a surplus, the local consumers would ' get the benefit. All that was wanted of ( these undertakings was. said the i Mayor, that they should pay their way < and not be made a taxing measure, as practically became the cafe when each ] installation was charged the same in- , terest rate, irrespective of the rate at r which the money was borrowed. Tht , Council was bound by its present con- ( tract with the Government, and could j only fight the matter out when settling •( the terms of the new contract which , came into force after March. The City , Council took well over 6COO kilowatts , from the Coleridge supply, and the c proposed increase in the Interest f charges would represent an additional ( cost to the city of £3OOO a year. \