"DEAD WEIGHT LOANS"

Evening Post, Volume CXI, Issue 98, 28 April 1931, Page 11

"DEAD WEIGHT LOANS"

Speaking at 'Kelburn, -Mr. J. D. Sicvwright, a Ratepayers' candidate for thecouncil, said that Mr. Luckie'had repeated the blunder ho had made when he said that three;fifths- of tho ' total rate revenue, namely, £320,000, was required to pay interest on "deadweight" loans.. "Hois," said Mr. Siovwright, "deliberately -attempting to mislead tho electors." At 0 per cent, £320,000 would pay interest on £0,400,000. Mr. Luckie ought to-know that the Electricity,'the Tramways, and tho Milk Departments have paid their own interest and charges. All the money borrowed to establish these departments amounts to something over £3.000,000, and the "deadweight"

loans to fully. £2,500,000. The interest on theso loans was in 1929-30 £77,000, but at tho 31st. March, "1931", the- interest payable on the "doad-weight" loans was £133,000, an increase ' of £60,000; equal to a "dead-weight" increase of debt at 5 per cent, of £1,200,----000. "Mr. Luckie,,is not ..only ..wrong in that particular," said Mr. Siovwright, "but when he saya that £320,----000 is required to pay tho 'dead-weight' loan interest ho is sta'ting.'.iiot only what is a shocking blunder on the face of\it, but he is giving a figure, namely, £320,000, which is £25,000 more than the total interest to all loans, 'deadweight.or general, and trading .loans combined. Tor ttiertotal interest paid on all these loans for the year ending 31st March, 1931, was £295,000." \