LOANS TO LOCAL BODIES

Press, Volume XCIII, Issue 27912, 8 March 1956, Page 12

LOANS TO LOCAL BODIES

NATIONAL PROVIDENT FUND

FURTHER RISE EXPECTED THIS YEAR

(New Zealand Press Association) WELLINGTON. March 7.

The National Provident Fund lent £1,894.080 to local bodies during 1955. compared with £1,149.446 in the previous year. Announcing these figures the Minister in charge of the fund (Mr E. H. Halstead) said that increased lending to local bodies would be possible this year as a result of the pooling arrangement introduced at the end of last year. Details of the interest rates on moneys deposited with the pool were announced last month, and local bodies were at present being advised of details of the scheme. So far £250,000 had been deposited with the pool, representing a very promising start. With this support from local authorities, it would be possible for the fund to lend considerably more than £2,000,000 during 1956. Total lending would, of course, be limited by the extent of deposits with the pool, and it was therefore in the interests of local bodies to support the scheme, he said Details of loans made during 195? are: cities and boroughs. £589.745’ counties. £205.129: electric power boards. £386.143; fire boards, £93.300 harbour boards. £328.828: hospital boards. £220,185; sundry local authorities. £70,750. The amount invested in local bodies by the fund at the end of 1955 was £ 10.520,958.