Hospital Board Wants Mr. Nash To Fulfil Promise

Northern Advocate, 9 May 1939, Page 3

Hospital Board Wants Mr. Nash To Fulfil Promise

Although given a definite assurance by the Minister of Finance that the Whangarei Hospital Board’s building extension loan of £7COO would be available, the board is still seeking a more reasonable agreement for interest and repayment. Under the original loan, £25,000 was raised on a 20-year table mortgage. At the last meeting of the board, information was received from the State Advances Corporation to the effect that £3500 of the required additional £7OOO was available on a 20year table mortgage repayable in 10 years’ time. Mr J. A. S. Mac Kay, chairman of the board, was instructed to go to Wellington in order to meet the Minister with a view to having the promise for the full amount carried out.

“When I got home that night, Mr Barclay rang me to see if he could be given the opportunity of approaching the Minister, as the promises had first been made through him,” said Mr Mac Kay at yesterday’s meeting, z “When I asked him, Mr Barclay said that the promise made to him was the same as that made to me. “When no reply was forthcoming from Mr Barclay, I asked the secretary to wire him in Wellington. No Further Information. “We have now received a telegram from Mr Barclay saying that, owing to the Minister’s absence from Wellington, he has been unable to get further information re terms of the loan.” Interest would commence on the further issue from May 11, 1939, and would be subject to the corporation’s usual charge of 2/6 per cent for scrutiny of procedings, stated the corporation yesterday. “With regard to the term, the corporation’s loan of £25,000 in 1937 was granted, having reference to the terms upon which the corporation itself could procure funds for the purpose of re-lending. “I am afraid, however, that the present terms of borrowing by the corporation preclude any increase in the term of the loan as ‘recently offered to you. I may add that the terms upon which your present loan requirements has been met are those enjoined upon every local authority seeking financial assistance from the corporation.”

Not Favourable To Board. “The terms offered for the £7OOO loan now are very unfavourable to the board. A cash payment is expected in 10 years’ time. Interest and sinking fund are to be the same .as on a 20-year loan.” Mr A. Clarke suggested that the Loans Board’s offer be accepted. Although terms were not favourable in comparison with that for the loan, he thought that, in view of the corporation’s statement that the terms were the best offered to local bodies in the Dominion, the offer should be accepted. “It is a matter of urgency,” he said. “It will be better to accept the terms, and trust to Providence that wo v/ill be able to repay it in 10 years.” “But we have had a definite promise from the Minister that the loan will be raised on a 20-year basis,” replied Mr Mac Kay. “There is no reason why this matter should not be dealt with by the acting-Minister. We have the right to expect Cabinet to honour the Minister’s promise, even if he is absent.” Further endeavours, through Mr Barclay, are to be made by the board to have the .additional loan raised according to the Minister’s original promise.