WAIPORI EXTENSIONS

Otago Daily Times, Issue 18465, 28 January 1922, Page 10

WAIPORI EXTENSIONS

FINANCIAL ARRANGEMENTS. LOCAL LOAN FAVOURED. The following report ia being submitted to the City Council by the Finance Committee in connection with tho Waipori extensions:— “Your committee bogs to report having investigated the question of providing the finance required for meeting the obligations of the electric power and light department when the tenders for the additional generating plant at Waipori shall have been accepted. These tenders are now in, and are being dealt with by the department and the Electric Power and Light Committee preparatory to submission to the council. Inquiries have been made through the Bank of New Zealand as to the terms npon which the sum required (£200,000) could bo raised in London, and the reply is to tho effect that a 6 per cent, loan could bo placed at £9B. The actual cost to tho council, after allowing for cost of flotation and other charges, would be £6 16s lid per cent, for a loan repayable in 15 years. In view of the success which has ’been hitherto attained in raising money locally on a 6 per cent, basis at par, and the fact that there ia still a steady demand for our debentures, your committee is of (he opinion that the council should continue the effort ie meet its requirements on the local market. Tho money will not bo required all at once. As a matter of fact, tho payments for the plant will bo spread over a considerable period, thereby affording ample opportunity for tho gradual filling of tho loan, and incidentally saving a certain,' amount of interest. "It is accordingly recommended that authority bo now gran led the Finance Committee to take the necessary steps to provide finance for tho Waipori extensions by raising on the local market a loan of £200,000 at par, 'bearing interest at the rate of 6 per cent, per annum, and having a currency of 13 years.