LOAN MONEY SCARCE

Press, Volume C, Issue 29469, 22 March 1961, Page 14

LOAN MONEY SCARCE

Drainage Board Concerned

The Christchurch Drainage Board needs a steady flow of loan money to meet its loan commitments, but the sec-retary-treasurer (Mr T. A. Tucker) reported last evening that it could expect reduced public support. “An estimated excess of payments over receipts of at least £50.000 a month in the coming months is sufficiently indicative of the seriousness of the situation,” he said. Subscriptions to the £300.000 treatment works issue amounted to only £21,670 in February. The total subscription in the issue since December 1 was £148,300. or 49.4 per cent. The February subscriptions were more likely to have been affected by the Government loan than was normal, as the margin in the return from Government issues compared with local authority issues had been further reduced. "While this state of affairs continues, this board and other local authorities can expect reduced public support. especially when It is realised that the Government has some £s6m of loans maturing in the coming year.” Mr Tucker said. "This board’s position is aggravated by the fact that during the next two months two other local authorities will be on the market, and no advertising will be undertaken by the board during the period. Even though the Government loan is now filled, the board’s position will steadily deteriorate because of the return to the normal monthly pay-out of £60,000 to £70.000 on contract commitments.” Loan cash balanced had fallen from £264,625 at the end of January to £193,840 at the end of February.