LOAN DIFFICULTIES

New Zealand Herald, Volume LXXVI, Issue 23405, 22 July 1939, Page 14

LOAN DIFFICULTIES

MANUREWA BOROUGH FUNDS NOT AVAILABLE PAVING SCHEME HELD UP Difficulty in financing it« loan of £8950 for concrete footpaths was reported at the Manurcwa Borough Council meeting. Replies received from several private financial institutions stated it was regretted that no funds were available.

The Mayor, Mr. W. J. Ferguson, said 110 was concerned over the position, as it was proposed to engage a fairly large number of unemployed men on the scheme. At present there were 38 men engaged on No. 13 scheme and unless the council could put its loan works into operation it would be faced with the alternative of standing the men down, as essential works were difficult to arrange.

Mr. Ferguson al§o expressed regret that the petition of ratepayers calling for a poll on the loan proposals had not only occasioned delay, b/it had placed tho borough under additional financial obligations. The loan had originally been authorised at 3J per cent, but the interest rates had been increased to 4} per cent by the time the loan was} approved by tho poll. It meant that tl\e council had to find an additional £2OOO in interest alone. After discussion it was decided to authorise the Mayor to travel to Wellington to interview the Minister of Labour, the Hon. P. C. Webb, and tho State Advances Corporation with a view to arranging for fiuanco.