SANCTION FOR £25,000 LOAN

Northern Advocate, 10 May 1937, Page 4

SANCTION FOR £25,000 LOAN

Whangarei Hospital

Additions

Sanction for the raising of a, loan of £25,000 for hospital additions, was received by the Whangarei Hospital Board today,, from the Local Bodies Loans Board. The Loans Board wrote stating that the board’s application for sanction to raise the loan was submitted to the Lodns Board, when the board sanctioned the proposal, ! subject to. the conditions set out- in the notification of sanction, for £25,000. ;; .

The: notification of the sanction provides that the work is hot to be commenced until the final plans and specifications have been approved by the Public Works Department, and the Health Department, but this stipulation would not in any way delay the board from raising the loan.

When dealing with this application, the Loans Board noted that the amount applied for by the Whangarei Board was £25,000, but, as the , reports received indicated that the expenditure necessary would probably amount to £26,500,Kit indicated that it would be prepared to consider favourably a supplementary application by the Hospital Board for a further small amount. This, however, could be proceeded with after tenders had been received.

Conditions.

The sanction is subject to the following conditions, among others: The term of the loan or any part thereof which may be borrowed, shall be 20 years; the rate of interest in respect of the loan or any part thereof, shall not exceed £3/10/- per cent, per annum.

The chairman and secretary were authorised to open negotiations for the loan immediately. ■

Mr J. G. Barclay' said that he thought there would -be some difficulty in getting the money at .3$ per cent. He was . sure they would not * get it through brokers at the present time. A lot would depend on Government lending institutions, and, the position in regard to their reserves. In Australia, the money could not be obtained at under 4f or 5 per cent.