SOUTHLAND POWER BOARD

Otago Daily Times, Issue 22826, 10 March 1936, Page 7

SOUTHLAND POWER BOARD

LONDON LOAN CONVERSION SINKING FUND RATE A REDUCTION SOUGHT (Special to Daily Times) INVERCARGILL. March 9. A mooting of the Southland Electric Power Hoard was hold this morning, Mr W. Hinehoy presiding. There were also present Messrs A. M'Kcnzie, D. J. Tlcenan. G. Wrnyt, W Norman, S. Rice, T. Golden, E. K. Sim. W. J. M'Kcnzie. and J. T. Carswell. The reports of the secretary and engineer were adopted. The board received a telegram from the Minister of Finance to the effect that accompanied by the Minister of Public Works (Mr R. Semple) he would visit Invercargill next week to discuss the question of the taking over of the Power Board by the Government. After a lengthy discussion in committee the board decided to send the following telegram to the Minister of Finance; — “ Regarding the cofiversion of the London loan my board has been a "vised by the Loans Board that anticipating an application for the renewal of the loan a special meeting of the Loans Board was prepared to sanction £1,300,000, but in view of section 88. sub-section 5, Local Bodies Loans Act, 1936, determined that the sinking fund be £4 2s per cent., the board feels that the rate of £4 2s per cent, sinking fund imposed by the Loans Board is too burdensome, that if will increase the charges and will be most unpopular in Southland. The. board considers that a 2i per cent, sinking fund should be the maximum. The settlers have been' looking forward to the cancellation of the special rate. This is a complete reversal of the promises of previous Ministers. The board is in session to-day, but is holding over the decision of the proceedings with regard to conversion pending your decision to this appeal to reduce the sinking fund to 2J per cent. The board will meet to-morrow morning to discuss the reply from the Minister.”