LOCAL BODY LOANS

Evening Star, Issue 21634, 1 February 1934, Page 2

LOCAL BODY LOANS

ACTIVITIES OF BOARD [Peh United Press Association.] WELLINGTON, January 31. A meeting of the Local Government Loans Board to-day dealt with twentysix applications for loans totalling £224,445, of which. £240,670 was sanctioned, comprising £157,375 for redemptions, and £47,295 for new works, the balance (£17,775) being declined or deferred for further consideration. During the last session of Parliament legislation was enacted enabling local authorities to finance works for the benefit af special areas out of the general account, and later to reimburse that account over a period of years from rates collected from the special area, thus obviating borrowing on thm open market. Several applications which, but for this provision, would have involved borrowing by the local authorities concerned were dealt with under the new legislation, thus enabling them to finance the works out of their own resources. Twenty-nine applications from local authorities for the conversion of loans were considered, involving existing loans totalling £5,250,315, and the isr sue of new securities to the value of approximately £5,155,201, bearing interest at 41 per cent. Eighty-one schemes from seventy-eight different local authorities have now been dealt with by the board covering a debt amounting to £16,687,216, the approximate amount of the new securities to lie issued being £16,547,207. All the schemes have been carefuly examined to ensure that there has been no undue 1 txtension of the existing maturity, dates, and the schemes have, for the. most part, been so drawn up that funds will be available to redeem the conversion loans in full at the new maturity dates. . • The latest figures available disclose, that the local authority debt domiciled in New Zealand at March 31, 1932, amounted to £47,757,576, and of this sum £43,023,734 is subject to the conversion legislation, the balance being, excluded mainly because the rate of interest is at present 4J per cent., or less.' As a debt totalling £16,687,216 has been dealt with, there is now £26,336, 518 for future consideration. Schemes from twelve classes of tocal authorities have already been finalised and have been received from the following:—Cities and boroughs 22, power boards 15, harbour boards 8, town boards 6, hospital hoards 5, fire boards 3, river boards 4, county councils 5, drainage boards 3, and one each from a gas lighting board and a tramway board.