LOANS

Evening Post, Volume CXI, Issue 95, 23 April 1931, Page 12

LOANS

"DEAD" AND TRADING -

A POINT OVERLOOKED ?

Iteforring to Mr. M. F. Luckie's statement in Wednesday's "Post," in which he sought to show that a reduction of rates was rendered difficult by reason of the largo amount of money sunk'in practically permanent loans, M'hich constituted a big proportion of tho total city debt, Mr. J. D. Sievwright, Ratepayers' Association candidate for the City Council, speaking at Kilbirnic last night, agreed with Mr. Luckie that tho total rate revenue was between £525,000 and £530,000 last year, 10 per cent, of which would be £52,000, but proceeded to differ with his deductions. A return procured by,him from the City Council showed that the electric light ' department's trading loan showed a profit of £60,----000, the tramways department between £5000 and £6000, and the milk department' £7995. From all these accounts had been taken the interest on ' tho loans by'which they were established. There were £3,250,----000 invested in the tramways, nnd the tramways had to pay interest on that beforo it could show a profit, and it was tho same with- the other trading departments. Last year the City Council paid interest, including that on trading loans, amounting to £275,000. Mr. Luckie had not defined what was payable on tho trading loans, and what was payable on the dead weight loans which were earning nothing. The dead weight loans accounted for £130,000, equal to 6 per cent, interest on £2,000,000. Tho rest was made'up of trading loans, and that interest was all deducted from the earnings of the trading departments.