INTEREST LIABILITY

Evening Post, Volume CXVII, Issue 113, 15 May 1934, Page 16

INTEREST LIABILITY

MANAWATU POWER BOARD

(Special to the "Evening Post.")

PALMERSTON N., This Day.

The matter of the Manawatu-Oroua Power Board's interest liability to . the A.M.P. Society was discussed at the annual meeting of the board yesterday.

Mr. J. Hodgens drew attention to an extract from the annual report of the chairman (Mr. C. G. C. Dermer), which stated: "The full amount of interest has been charged against revenue, but we have 10,097 10s in reserve for payment of interest which has been' deducted from interest payable to the A.M.P. Society, and it is expected that definite information will be received in the matter shortly. Mr. .Hodgens said it would be in the interests of the board, as well as of'the district, if it faced the matter and came to an understanding with the A.M.P. Society. In. his opinion, the board should not go on indefinitely treating the matter as it was at present.

After discussing the matter in committee, the board decided to send a deputation to -Wellington seeking a reduction in the interest payable to the A.M.P. Society.

Mr. Hodgens expressed regret that the matter had been discussed in committee. It was an astounding fact that the interest payable on one of the main loans, amounting as it did. to £22,000, was more than the cost of the board's power (apart from bulk supply) drawn from the Public Works Department. This, item cost the board only £19,000 in the past year. It did not seem right that the board should have to push a load on" to the consumers and be chary of approaching the moneylenders for a reduction.