PUBLIC BODY LOANS

New Zealand Herald, Volume LX, Issue 18459, 24 July 1923, Page 6

PUBLIC BODY LOANS

•*— — 1 : r LOCAL | ISSUE CRITIQIS^ CRIPPLING. OF INDUSTRY POWER BOARD PRO?OSa||| The raising' locally of heavyJloanlSß local bodies was challenged by Bloodworth at a meeting of ' the. Auckland'! Electric iPower Board on tho ground such a policy would absorb available fa 11 tal to the detriment of . industrial: ont^ l " prise. \ - • • -V-»N The board had already, adopted -l recom" mendatidn by the finance committee • r thvi# the sum of £240,000 required to' pay tyfi City Council, for plant taken over, shouljfK be raised locally, and yesterday the mittee further recommended that authorial should be given for a' sum not exct>a/M ing £250,000. Mr. J. Park, supporting Mr. ■-Blood® worth, said there was a feeling in thap city that the board would; be better tffiP vised to raise the money. overseas. The chairman, Mr. S. J. Birbutt, said the finance committee already had mads pi local inquiries in regard to the loan. , Mr. Bloodworth: Will yob accept*s.. amendment, giving us power to go over. seas? . " t - The Chairman: There is the resolution to raise £240, locally. We could iel : scind it. / . * , . V 'tia|| Mr. Bloodworth: I happen to bV s *'V member of a. local body ,which pronoseSll to raise £250,000 locally,- and Mr. Row® has just remarked that a local body .of " which he is a member intends to raise another large loan locally. I believe that there- are proposals by local bodies la raise well: over one million pounds localhri This .will cripple industrial • finance. • would be far better to obtain fresh : capital from overseas, where I believe could get better terms than five and a halfl per . cent. . • •.* - j Mr. J. Dempsey remarked that often? much of the money' described as local loans came from Australia. , , ■ Mr. J. Row'e then gave notice of motion to rescind tho previous resolution; and to move that a loan not exceeding £250,G00t be .'raised, ' the word " locally'' C beingl omitted. r - Members generally appeared to .bo i* accord .with the motion. , k