New Bank Makes First Loan To Drainage Board

Press, Volume CI, Issue 29900, 14 August 1962, Page 14

New Bank Makes First Loan To Drainage Board

Mr M. A. Connelly, MP., chairman of the Canterbury Savings Bank, gave Mr F. R. Price, chairman of the Christchurch Drainage Board, a cheque for £20,000 yesterday afternoon. The cheque was the first investment made by the bank outside Government stock.

"This opens a new era in the financing of local body works in the Canterbury area.” said Mr Connelly, when he handed over the cheque. “The bank is now fulfilling the purpose for which it was set up and for which so many people have subscribed.” Many local bodies in Christchurch and its surrounding areas were in need of loan funds for essential development work, Mr Connelly said. Some residents and ratepayers were not able to subscribe to £lOO debentures, but they wanted to see the work done. By putting their savings in the bank they could help local development as well as assist in the genera] savings of the community.

Speaking particularly of the Drainage Board's w’orks. ,Mr Connelly said there were many in new areas who wanted to save to meet the cost of sewer connexions into their homes and any necessary alterations By subscribing to the bank they could budget for those expenses, and at the same time, indirectly help the Drainage Board to reach out to their areas. Mr Connelly said the Drainage Board's plight a few years ago had been among the major reasons for the move to establish the bank; and the board of trustees was happy that the board was the first to benefit.

As deposits increased, the bank would be able to assist other local bodies, he said. He explained that the bank at present had to have 90 per cent, of its deposits in Government stock and 5 per cent, as a cash reserve and

had th.e other 5 per cent, available for investment. When deposits reached £1 million, half the money available for investment would be available for local body finance, Mr Connolly said.

With 1800 depositors, the bank’s deposits had now reached £405,000

“We have had our programme delayed from time to time because of a lack of finance, and we very much appreciate the selection by the bank’s trustees of the board for the first major investment,” said Mr Price. "This indicates that they appreciate the importance of drainage and sewerage works in the city and the rest of th.e metropolitan area. We also hope the genera] public will appreciate the need the bank has seen ”