CITY COUNCIL LOAN.

New Zealand Herald, Volume LIX, Issue 18272, 13 December 1922, Page 8

CITY COUNCIL LOAN.

ISSUE IN AUSTRALIA.

BETTER THAN LONDON TERMS

DEBENTURES TOTAL £150,000. The Auckland City Council has issued very successfully in Australia debentures aggregating £150,000. Allocations and tho municipal purposes for which the money was raised are as follow : — Antecedent liability . . . . £89 ; 0Q0 Drainage works . . . . 25.500 Abattoirs extension • . . . 13,000 Zoologies I Park .. . . 10,000 Destructor 7,5C0 Total £150,000 The debentures that have been sold have a currency of 21 years, the security being a special rate over the annual ratable -value of the city with a sinking fund of not loss than 1 per cent. The' rate of interest, states the Mayor, J[r. J. H. Gunson, is 5£ per cent., the money for the debentures being payable at par in Auckland. The transaction was effected through the council's financial advisers, the Bank of New Zealand, and the charge in connection with the issue is a-half per cent commission. " The issue in Australia," said Mr. Gunson. " is a very favourable one for the city. The terms are better than we could get in London. The advantage represents a gain of 7s per cent, compared with the recent issuo of some £800,000 city Tramway debentures by the Auckland Tramway Company in London. It is gratifying to know that the credit of the Auckland City Corporation stands so high in Australia."

The successful issue of £150.000 practically clears up all the existing loan balances with which it is necessary to deal at present. There is one exception, this heing a email loan of £8000 under the Auckland City Borrowing Act, which is being issued at 5' 2 per cent, at par by the city treasury over the counter. This issue, in view of the ready sale of debentures in Australia, should appeal to local investors. The remaining outstanding loan auth. orities cf the council are:—On account of drainage works, £15,000, and on account of tramways, £35,000, a total of £50,000. There is still a balance in the streets improvement loan from which concrete paving work is being carried out in Grey Lynn and the old city area. The programme under that financial authority will keep the council's workers fully occupied until well into the next financial year. " It is not proposed at present," added the Mayor, " to seek further authority fo; % street improvement works which must follow the completion of the present programme. Under the loan issued in Australia the extensions at the city abattoirs will be at once proceeded with. The work at the Zoological Gardens and also at th» city destructor is already well in hand." It may be noted that with the close of the year, which has been marked with a forward policy in respect of general progress, the finances of Auckland City are in a very {satisfactory position, with all essential municipal work well provided for, and the financial interests of future well arranged.