LOAN OF £15,000

New Zealand Herald, Volume LXXVI, Issue 23284, 1 March 1939, Page 12

LOAN OF £15,000

STATE ADVANCES OFFER POWER BOARD'S APPLICATION WORK IN SOUTH CANTERBURY [by telegraph—OWN correspondent] CHRISTCHURCH, Tuesday An urgent telegram from the Minister of Finance, the Hon, W. Nash, received yesterday, promised that arrangements would be made for tlio State Advances Corporation to lend the South Canterbury Electric-power Board £15,000 on a 10-year term and a 20-year table at 3J per cent. An announcement of this was made by the chairman, Mr. G. Dash, at a special meeting of tho board.

It was decided to accept the offer, hut to ask tho Government for a statement of yearly payments under a 10-year and 20-year terminating fund, and to ask whether tho board might choose one or the other. The Ashburton Electric-power Board held a meeting on February 20, at which it was reported than an application for a loan of £15,000 had been made, of which half was offered. The board decided to accept £7500 and to point out to the Minister that the board, having failed to obtain its necessary loan requirements either from (1) tho general investing public at 3i per cent, (2) its bankers, or (3) the Stato Advances Corporation, all further capital expenditure must cease.

Mr. Dash said that tho position in which the Ashburton board found itself caused him great concern. The iNorth Canterbury board on February 22 found itself in a similar position to the Ashburton and South Canterbury boards over loan moneys, and discussed tho possibility of closing down on all extensions. As he had received no reply to his request for assistance he sent a telegram to Mr. Nash asking for a loan of £15,000 or permission to offer the public per cent.