Debt Reductions By Heathcote

Press, Volume CVII, Issue 31439, 4 August 1967, Page 1

Debt Reductions By Heathcote

Describing the situation as “fairly well in hand,” the chairman of the Heathcote County Council (Mr C. D. Le Comte) yesterday spoke of steps taken by the council to correct its March 31 deficit of $247,810, and said that it was the council’s hope and aim to restore the confidence of the county’s residents.

Speaking of rates owed by the council to ad hoc bodies at March 31, Mr Le Comte said that the full $2086 had been paid to the Canterbury Museum Trust Board, and the North Canterbury Catchment Board had received its full $3020.

The council had reduced its $68,472 debt to the Christchurch Drainage Board to $44,472 at the end of July, and had reduced the $11,084 owed to the Christchurch Transport Board to $9084. Progress payments would continue to both boards. “We have been able to do this, and pay our current accounts as well," said Mr Le Comte.

“The rate demands will go out on August 14, and the council will soon feel the effects of money coming in. The council is giving a 5 per cent discount on general and water rates paid before September 13.” Progress payments of subsidy due on the current year’s road work are normally made to councils by the National Roads Board. Heathcote recently received its first instalment of $4388, and another payment is due soon. Mr Le Comte said that the council’s lawyer was preparing submissions to the Local Authorities Loans Board for sanction for the council to borrow up to $200,000. “We may not need the full amount,” he said, explaining that the loan would be a retrospective one to reimburse the council for money spent out of revenue on capital works that would have been better done by loan. It was likely that only $160,000 of the authority would be needed.

“The council now has an application before the loans board for a $14,000 supplementary loan to meet additional costs on water reticulation work,” he said.

“We would have been automatically entitled to 10 per cent more than the original loan, and this would have been about $lO,OOO. We have been told that the board will give the application favourable consideration, and the money has been promised by two banks.”

While this indicated confidence in official quarters, the council had been given the confidence of the public by its support of council loans that had just been filled, he said.

A works loan of $70,000 and an electricity loan of $60,000 had been filled over the last month, and the council had received investments of $95,400 towards the $lOO,OOO No. 2 waterworks loan. The balance, except $2OO, had been promised, said Mr Le Comte.