THE MONOWAI SCHEME

Otago Daily Times, Issue 22832, 17 March 1936, Page 14

THE MONOWAI SCHEME

QUESTION OF DISPOSAL NEGOTIATIONS WITH GOVERNMENT (Per United Press Association) INVERCARGILL, March 10. Two offers placed before the Southland Electric Power Board to-day by the Minister of Finance, Mr W. Nash, were rejected by the board after discussion in committee. The offers were; (1) To take over ihe whole Monowai scheme on the basis of its liabilities. (2) To purchase the headworks at Monowai for £435,000 in New Zealand currency, and retail the power to the board.

Before making a decision on either offer the board asked the Minister for his intentions concerning the hoard’s proposal that the sinking fund to be set aside over the remaining 18 years of the London loan should be graduated and not at the flat rate of 4.2 per cent, insisted on by the Government. The Minister did not view favourably the suggestion of a graduated sinking fund and stressed the necessity for money to repay the loan being in hand when the period expired. It was, he considered, because this system had not been rigidly followed with the increased provision necessary owing to the fluctuating money values and the high exchange that the board was in its,present position. The board and the Minister will confer again in the morning.