EARTHQUAKE LOANS

Dominion, Volume 31, Issue 71, 17 December 1937, Page 7

EARTHQUAKE LOANS

Local Bodies’ Conference To Consider Repayment Dominion Special Service. Hastings, December 16. The conference of Hawke’s Bay local bodies held at Hastings yesterday to consider the question of the repayment of earthquake rehabilitation loans was attended by representatives of fifteen local bodies from Hastings to 'Wairoa. On the motion of the chairman, Mr. G. A. Maddison, mayor of Hastings, seconded by Mr. F. B. Logan, chairman of the Hawke’s Bay County Council, the conference decided that the Minister of Finance, Hon. W. Nash, be invited to visit Hawke’s Bay toward the end of February for the purpose of conferring with representatives of local bodies regarding earthquake rehabilitation loan indebtedness to the Government and further, that members of Parliament for the various districts, Mr, E. L. Cullen, Hawke’s Bay, Mr. H. M. Christie, Waipawa, and the Hon. W. E. Barnard, Napier, be requested to arrange such a meeting. Mr. Maddison presided and surveyed the position regarding the loans. He pointed out that approximately £250,000 was loaned by the Government to local bodies for rehabilitation purposes following the earthquake period, and that of this amount £lOl,OOO was given to the Napier Borough Council. Eventually the Government decided to make the Napier loan a free grant, thereby wiping out that body’s earthquake rehabilitation loan indebtedness. This left approximately £150,000 still outstanding and owing by local bodies.

However, during the pjist year local bodies received demand notices from the Treasury, asking for the repayment of the principal and interest charges, but after making representations to the Government it was agreed by Cabinet that the demands for the current year would be waived and that there would be a reduction of one-half per cent, in the interest rate in future. This decision did not meet with the approval of the majority of the local bodies, who desired more consideration, and the conference was the outcome of these protests. The following shows the actual earthquake rehabilitation loan indebtedness of the local bodies concerned: —Hawke’s Bay Hospital Board, £60,850: Napier Harbour Board, £30,500; Hawke’s Bay Rivers Board, £22,000: Hastings Borough Council, £11,000; Napier Fire Board, £7650; Wairoa Borough Council, £4500; Wairoa Hospital Board, £3700; Hawke’s Bay County Council, £3000; Taradale Town Board, £2500; Wairoa County Council, £2166; Hastings Fire Board. £2000; Havelock North Town Board. £950; Greenmeadows Progress League, £500; Wairoa Harbour Board, £4OO, Total, £146,716.