POWER BOARD MEETS

Manawatu Standard, Volume XLIII, Issue 446, 11 July 1922, Page 6

POWER BOARD MEETS

RAISING THE LOAN

NEW ZEALAND VERSUS LONDON

A meeting of the Manawatu Oromi Electric Po\vei A Board was held this afternoon, the chairman (Mr J. A. Nash, M.E.), presiding. Some discussion took place when the chairman reported on _ his efforts—-the outcome of the executives instructions to obtain information regarding the comparative terms of raising money in New Zealand and London. Referring lo the matter, the chairman stated that, from' enquiries lie had made, it might bo possible for the board to receive from within the Dominion a loan of £200,000 on account of the total loan ol £500,000. payment to be spread over a period of four wars in four sums tit £50,000. The board would, he considered, be acting wisely il il accepted such an offer, subject io the first instalment bearing 5 per ceni. interest, i!u* remaining instalments (o he .subject to the rate ot interest current in the Dominion at the tunc the money was mlvaiiced. Provided these terms could be obtained it would pay the board to take its risk on the New Zealand market. The offer to which he referred had not vet been definitely made, but lie twis confident thal il would be forthcoming. No commission or exchange would he payable on the loan. Ihe chairman went on to state tint 5 per cent, in New Zealand would he cheaper than 54 per coni, at £33 on ihe London market. ti, reply io Mr J. Linklater, the chairman said he recognised that £50,000 per year would not be sufficient the board would immediately go on raising u further loan.

Mr P J. Small raised the question as to whether the raising of big Joans on the New Zealand market would not cripple other Dominion works in tided of capital. The chairman stated that he did not believe that any great sums had been raised in New Zealand of late. On the contrary a lot of Australian money had been coming into die Dominion. A MOOT POINT. Mr M. A. Eliott staled that he was in favour of going on the New Zealand market provided the terms outlined by die Mayor were secured, and it was possible to get die whole of die money required within die Dominion, it the board had lo go to London for the balance of the £500,000 the fact that a portion of the loan had been raised in New Zealand might adversely affect the negotiations, Mr J. II Vincent said he held the same opinion as Mr Eliott. Ii might affect die value of the board’s security in die eyes of the London market. Air L. McLean considered that more harm than good would result if the board went on die local market, as all ihe capital available would he required when die moratorium was lifted. The board would do a great deal more good if it borrowed the money in London, even though the rate might be a little dearer than in New Zealand. Ultimately, the board affirmed the principle of raising the money in New Zealand on favourable terms, the currency of the loan to be 10 years, and the chairman to be authorised lo continue the negotiations. Nothing definite can be done until after the forthcoming poll of ratepayers. CONFERENCE OF BOARDS. The South Auckland Electric Power Board’s League forwarded intelligence to the effect that it had requested the Minister of Public Works to call a conference of power boards to consider matters affecting the-'welfare and. general working of the boards. A copy of the Minister's reply was forwarded in which the opinion was expressed that, as power boards generally throughout the Dominion were in their initial stages, much good might come out of such a conference. It would, however, be better for the proposal to emanate from (he individual hoards. The Minister therefore recommended that the- various boards be circularised with regard to the matter. The board approved of the idea of holding a conference and appointed the chairman and Messrs Eliott and Linklater to attend the projected gathering.