BOARD’S DILEMMA

Dominion, Volume 29, Issue 196, 16 May 1936, Page 15

BOARD’S DILEMMA

Banking Work in the Manawatu DEPUTATION TO MINISTER Dominion Special Service. Palmerston North, May 14. Correspondence relating to the financing of banking work to be carried out at Coley's Bend was reviewed in a report presented to the monthly meeting of the Makerua Drainage Board held at I’almenstou North to-day. The board decided to send a deputation to the Minister ol Public Works, Hon. R. Semple, to expedite the raising of money for the pruj CCt - • , r u A letter had becei received from the Local Government Loans Board stating that permission hud been given by the board for the raising of a loan of £5OOO for the work, and tlie necessary formalities were being attended to, stated the clerk, Mr. N. I. Nielsen. The term of the loan was 15 years, the rate ol interest not to exceed 3J per cent., and jhe sinking fund not to be less than £5/4/- petcentum per annum. The money could not be raised after the expiration of two years. A further letter bud been written to the Minister of Public Works, in whicti advice had been given of the permission to raise the loan, but pointing out that it would be impossible to raise the money at 3J per cent, on the open market. The attention of the Minister had also been drawn to his statement, when he had inspected the work, that the Government would advance the money required. The question had also been asked if work hi connection with the diversion of Seifert's Drain would carry the same subsidy from the Government as that to be done at Coley's Bend. No reply bad been received to the letter, said Mr. Nielsen, and no reply to a telegram sent later. A letter had been written also to the Auditor-General, stating that the Government had promised a subsidy of £3 for £1 on the expenditure involved, and that tlie Local Government Loans Board had sanctioned the necessary loan. It had been pointed out. too. that certain imperative repairs had been carried out with finance from the general account, and the question was asked if that money could be paid back from the loan when it was raised. A reply had now been received, slating Hint a refund of that nature to the general account would be in order. “There is no chance at all of raising tlie money on the open market at 31 per cent..” said Mr. Nielsen. "If we cannot do that, then we will have to approach the Minister of Finance to get his permission to raise the money at a higher rate of interest. After that we would go to the bank asking them to hypothecate the debentures. Then, however, we would not get the full amount."

The clerk also reported that an objection had been received from Mr. D. A. Coley to the board's building the proposed new bn '• across his property. The meeting decided to send immedia’ely a telegram to Mr. C. L. Hunter. M.l’., asking him to interview Mr. Semple, urgently stressing the need for his reply to the matters already placed before him. A reply was received from Mr. Hunter an limit- later which stated : “Have conferred with the Minister. He states that anything he has promised to the board will be fulfilled." Mr. W. J. Ross: That means that it is very neatly shelved. It was resolved that the chairman (Mr. H. Seifert) and tlie clerk proceed to Wellington to interview the Minister of Public Works in an endeavour to have tlie matter brought to finality as quickly as possible. It was subsequently decided to com-

munieate with Mr. Hunter, asking him to arrange with Air. Semple for the deputation to be received on Monday if possible. A special meeting is to be held to consider the reply received by the deputation.