CONVERSION OF LOANS.

Press, Volume LXIX, Issue 20906, 13 July 1933, Page 9

CONVERSION OF LOANS.

WAIMAKARIRf TRUST APPROVES. STEPS TO BE TAKEN AT ONCK. Whether the Waimakariri Rivey Trust should convert its loan# in accordance with the general request of the Government recently made to all local bodies was discussed at the meeting of the trust yesterday, when a report from the financ® committee recommending that th* trust should accede to the request was received. After discussion the committee's report was adopted. The committee reported as follows: "Your committee has given very careful consideration to this matter snd has come to the following decision: That in the opinion of the committee the river trust should fall into line with the request of the Government and proceed witlt the ponversipn of our leans, end that the secretary he instructed to communicate with the Local Bodies Loans Board as tp the necessary steps to be taken, when the committee will submit a further report to the trust as soon as detail are available." Mr A. M&nhire, chairman of th# finance committee, said that the committee had carefully considered the question, and had decided in favour of conversion, lyfo one would suffer or be the loser by conversion. If they did not convert they would lose a golden opportunity for stabilisation. If the bo«dh§idei« did object they must that they wpre avoiding a 33 J-3 per cent, penalty. Conversion would assure them 4i per cent., while the penalty might give them Ips?. Mv Mfwhir® m®v«d th# adoption of the report. Mr Holland's DUBfulty. Mr H. Holland, M-8., said that he found himself in rather a Oft the Harbour Board he had voted mmst qpnv§w|OT because the board had felt that if it converted it would not be treating its bondholders fairly. Th# H#rr hour Board had goi\e iftta th# guMr tiqn thoroughly and had voted against it imanimpusly. "The position of the Harbour Board may Tie different from our*/' said the chairman (Mr J. H. BtefkweU). "We have £ 145,0PQ, which have apjprflxjmfitely 35 years to run. The that by legislation SO per cent, is deducted from the original rat# of interest,, which hringg it dfIWR to i\ per pent., ajid th# Qpverrimant has asked the local bodies toi the ratepayers fey carefully ,ppnss- - conversion so as to give the ratepayers the beneflt of the low rate for the whole period pf the instead A# just for the period of the legislation, jt seem? to me that, since thp Government has adopted" the principle of the low rate of interest ?nd has fisked the local bodies to co-operate with a view to' helping a return to prosperity, we as a local body operating over a very wide area would be taking a responsibility if we ignored the Government's" request. If we did so it would be very serious thing fpr the lecal bodies in our area." ''The Coneel T&iflf" Mr F. W. Freeman agreed with the chairman's remarks. It was obviously the correct thing to do, he thought. J , Mr W. P. Spencer: Why does.pot the Government make it comßUisory to convert? Mr Freeiaan: It does for' twfl Mr Manhir# remarked that th? position of the Harbour Spard W*» different, its loans had 9W J O. years to run. , _ The chairman said that the Government had not yet imm W pmpulsory to convert, but asked the local bodies tfl dfl w». , Stating that th# trust had reduced the rates of ,°f itf tenants Mr Holland _SPsof£t«d thjt the trußt woujd l\fit aSF e f tfl ifftr ductions for such a a * 35 The report was then adopted-