HOSPITAL BOARD’S DIFFICULTY

Dominion, Volume 32, Issue 150, 21 March 1939, Page 5

HOSPITAL BOARD’S DIFFICULTY

Cannot Obtain Money At 3-} Per Cent.

NO LOAN FROM STATE ADVANCES Dominion Special Service. PALMERSTON N„ March 20. “There is grave difficulty in getting money at 34 per cent, today,” said the chairman of the Palmerston North Hospital Board, Mr. J. A. Nash, atthe monthly meeting of the board today, referring to the question of raising money for the board's building programme, which calls for an expenditure in the immediate future of £82,000 for the erection of an isolatiou block and the Awapuni Home. “The public,” he said, “will not lend money at that rate of interest.” Before the board was a letter from the secretary of the State Advances Corporation informing the board that there was no immediate prospect of the board obtaining in the near future any portion of the £82,000 needed to carry out the board’s immediate building programme. The letter from the secretary of the State Advances Corporation was as follows :— “I duly received your letter of the 20th instant. I have perused the schedule accompanying your letter and note that the sum of £52,000 is required by your board, spread over the next 18 months. “It is regretted that no consideration can. be given to the matter until you ar? in a position to advise that the consent of the Local Government Loans Board has been obtained to the raising of the loan or that portion immediately required. I might mention that in any ease it is unlikely that the corporation can take any portion of this loan in the near future. The application lias, however, been suitably recorded and possibly when you have obtained the consent of the Loans Board the position might have changed.” Cl?h’e managing secretary, Nir. A. J- Phillipps, said there was apparently no prospect of raising the money at 34 per cent., nor was there any prospect of getting the money from the Government at present. He suggested that the board arrange for hypothecating debentures with the bank. This would involve the payment of 44 per cent, interest. Mr. J. Boyce said he did not like raising money at 44 per cent. The board might be paying this rate of interest for years. Whether the construction of an isolatiou block was urgent was questioned by Mr. V. E. Smith. He said he did not think the position warranted the board paying 44 per cent, for temporary finance. On the chairman’s suggestion the hoard went into committee iu order that he could fully explain the position. When the board resumed in open meeting a motion to hypothecate debentures was carried unanimously. (Auckland message on page 11.)