LOCAL BODIES' LOANS

Press, Volume LXX, Issue 21328, 22 November 1934, Page 12

LOCAL BODIES ' LOANS

Conversion Schemes CHRISTCHURCH POSITION Seven of the principal local bodies in Christchurch have taken advantage of the Local Authorities Interest Reduction and Loans Conversion Act. to convert their loan indebtedness. One other is at present considering a loan conversion scheme, and three others have not yet decided to make any move. The first two Christchurch local bodies to convert were the Christchurch Tramway Board and the Waimakiriri River Trust; the last was the Christchurch Drainage Board. Under the original conversion act it was provided that no order-in-council authorising conversion could be made after March 31. 1935, but an amendment act passed by Parliament last month extended the period by nine months. Local bodies will now be able to embark on conversion schemes up to December 31 of next year. Although the bulk of convertible local body debt has already been dealt with—approximately £22.000,000 out of a total of £4s.ooo.ooo—there are still many local authorities which have not been able to complete their plans. Actually there are some 500 local bodies with convertible debt, and of these only a few more than 200 have acted. This year's act also offered further, facilities for local body loan conversion. Loans Converted The Christchurch Tramway Board and the Waimakariri River Trust undertook to convert their loans early in the year. The Tramway Board':; conversion, covering - loans totalling £700,950, dated from February 15 last. I and that of the River Trust, approxi-1 mating £160.000 from October 1. ! The conversion of the Cnnstcnurch J City Council loans, a subject of much discussion during the year, was finally j decided on early in October. The con-1 version is to take effect from March | 31 next, and the large sum of £1,018,315 is involved. The North Canterbury Hospital, Board converted loans totalling £180.600, the new rates being effective from November 1 last. The Sumner Borough Council's conversion scheme was undertaken in two I sections. The first, dealing with loans of £26,100 was converted as from October 1 last, and the second, with loans of £ 13.850, as from August 1. .The New Brighton Borough Council also decided to reap the advantages of conversion. Its first order applied to loans amounting to £76,150, and its second to loans totalling £11,030. The latest conversion move en the part of Christchurrh local bodies is that of the Drainage Board, which on Tuesday last decided to convert loans totalling £948.600. Under the board's scheme""there will be one over-all rate of £4 os per cent. Of the other main local bodies in and near Christchurch only the Heathcote County Council is evolving a conversion scheme. The Lyttelton Harbour Board, the Riccarton Borough Council, and the Lyttelton Borough Council have not yet indicated their intention of converting. The first ol these has not deviated from the decision it made early in the year, the second considers that the benefits of conversion would not warrant the expense, and the last has not reached a decision. Amounts Involved The amounts involved in Christchurch local authority conversion can be set out as follows: £ Tramwav Board . . 700,950 Waimakariri Trust .. 160.000 Christchurch City Council .. 1.018.315 Hospital Board 189.600 Sumner Borough Council 39.950 Brighton Borough Council 07.130 Drainage Board • • 918.600 Total £3.144595