LOANS CONVERSION

Evening Post, Volume CXVIII, Issue 60, 8 September 1934, Page 11

LOANS CONVERSION

UPPER HUTT SCHEME

A letter, from, the secretary of '.the Local Government Loans Board regarding the Upper Hutt Borough Council's application for the approval of the Loans Board to conversion of securities totalling £45,655 was received at the meeting of the council ]ast evening, ■ The board , was 'of ,the: opinion that tho term proposed in the case of eonversion loan No., 1, namely 33 years; represented too great' an extension of the existing maturity dates and considered that this term should be reduced to, 'say, 27 years,' which would allow a substantial saving to the local authority. In this connection the Loans Board could not overlook the fact that the estimated "life" of the assets constructed out of loan money had a decided bearing on the terms of any loan, conversion: or otherwise. The board was further of tho opinion that as a material alteration in the incidence of rating would apparently be occasioned by the making and levying of a consolidated special rate oyer the whole area, publicity should be given by the council of its intention to make and levy such a rate, in order that ratepayers might bo made fully ' conversant with the council's intention in this respect. It was understood, that up to tho present the intentions of tho council had not been reported in any way. In view of tho above, the application was deferred to enable the scheme to be recast and for the suggested publicity to bo given to the proposal in all its implications. Councillors expressed surprise that the extension was considered too great, as it was understood that it had been granted in the case of somo other local bodies. It was' also stated that it was understood that tho Loans Board favoured consolidation of loans. Councillor W. Fortune that .ho did not think the council wouldbe asking for an xmcluo extension if it asked for a thirty-year'term, and on the motion'of the' Mayor (Mr. A. J. McCurdy) it was decided to recast the scheme for this term and submit it to the Loans Board. * 1 ... The Mayor asked the Press to mention that the consolidated loan would be over the whole of the borough.