LOANS FOR DRAINAGE

Press, Volume CI, Issue 29801, 18 April 1962, Page 17

LOANS FOR DRAINAGE

Improvement Expected The present rate of public subscription to the board’s loans was well below the average for last year, but there was every reason to expect that the next new public issue, with its attraction of a good proportion of short-term stock, would improve the average, the sec-retary-treasurer (Mr T. A. Tucker) reported to the Christchurch Drainage Board last evening, when he compared the financial position on March 31 with that of a year ago. At the end of the 1960-61 financial year the board baa £157,196 in hand towards commitments of £853.582. This year, cash was £170.454, and commitments £417,931. At the beginning of last year the board faced the prospect of rapidly-depleting loan funds becoming insufficient to finance monthly contract payments, and in addition the unknown factor of what percentage of £235.000 of maturing loans would be converted. Three factors operated to restore the position and bring about the present improved relation between cash and commitments.

They were a loan of £150.000 from the National Provident Fund, an improved rate of public subscription as a res.ult of two increases in interest rates, and a satisfactory percentage of conversions, leaving only £83,130 to be found by new lenders. Mr Tucker reported that in March loan subscriptions amounted to £59,080 and brought the total subscriptions to £880.890. leaving £93.170 outstanding.