LOAN PROBLEM

New Zealand Herald, Volume LXXIV, Issue 22853, 7 October 1937, Page 12

LOAN PROBLEM

LOCAL BODY TROUBLES INVESTORS NOT INTERESTED UNATTRACTIVENESS OF TERMS "MONEY GOING TO AUSTRALIA" [jTUOM OUIt OWN COItHKSJ'ONOK.NT] HAMILTON, Wednesday Requests to brokers to arrange for the raising of a loan of £17,000 at per cent for 20 years, made by the Central AVaikato Electric-Power Board, resulted in a reply being received by the board to-day from one of the brokers that it was impossible to raise the money at the rate of interest and for the term of years mentioned. Others stated that the prospects wero not bright and suggested a shorter term.

On receipt of the replies, the secretary, Mr. H. .T. Beeche, applied to the Minister of Finance, the Hon. W. Nash, for the money, but no reply had been received. __ Mr. S. S. Saulbrev remarked that the board had reached a deadlock. Mr. Beecho stated that during tho Budget speech the Minister of Finance had indicated that money would bo made available to local bodies at tho statutory rate of per cent. Mr. J. J. Ryburn said the Govern-

ment had better hurry up, for large sums of New Zealand money were being invested in Australia, where much better rates of interest were available.

The board decided to apply to the Local Government Loans Board for authority to raise a further loan of £50,000 for general reticulation work throughout the board's area. It was stated that when tho board received sanction to raise £50,000 in March, 1936, it was expected that this sum would meet the needs of the board for several years, but the demand -had increased so rapidly that further money was now wanted.

The board also decided to take steps to extend its area by taking in the Matakowhai riding of tho Raglan County, and the Oparati, Te Kauri and Kawhia ridings of the Kawhia County.