GORE BOROUGH

Southland Times, Issue 21659, 22 March 1932, Page 4

GORE BOROUGH

MEETING OF COUNCIL, Last night’s meeting of the Gore Borough Council was attended by the Mayor, Mr A. T. Newman, Councillors J. A. Baldy, W. D. Shelton, J. A. Wright, F. Young, W. K. Hamilton, J. Matthews, T. Sim, W. Gee. A. McLachlan, A. T. Pettigrew, G. C. Ham ilton and F. Wallis. Correspondence. The Southland Power Beard advised that it had had under-consideration the question of how the borough’s street lights could be best arranged and now made the following offer:—(l) The board would replace lamps and film intouts free of cost to the borough, provided the borough kept a stock of lamps to be used solely for replacement within the borough; (2) the board would undertake any maintenance and repairs which might become necessary after reconditioning was completed, at actual cost plus ten per cent. It was decided to accept the board's offer. Mr A. W. Paterson applied for a crossing into his section in Albany street.—Granted on the usual conditions. Mr D. McDougall, M.P., forwarded a letter from the Minister of Finance in regard to Gore Borough Council loans. The letter from the Minister was as follows:—“I desire to point out that as a result of negotiations with lending institutions and borrowers (in which pressure was brought to bear by local bodies), the Government introduced legislation last year reducing the rate of interest on State and local body loans by one-half per cent. Consequently the present State issue of new securities for sale to investors is limited to 5 per cent. If the Public Trustee requires to sell existing Government securities held on behalf of the beneficiaries in the estates which he administers, he can accept only the market rate which unfortunately at present stands higher than 5 per cent. This rate is the result of supply and demand on the open market over which tne Government has no control. If, as it appears, the Borough Council is finding difficulty in raising at the prescribed rate of interest, namely, 5 per cent., the two redemption loans of £6OOO and £l5OO, I am prepared in the special circumstances outlined to agree to payment at 5.} per cent, at which figure it is suggested that the Town Clerk pursue his inquiries for the necessary finance. Should it be found not possible to secure the money at 5.| per cent., application may be made for consent to raise the loan at 5J per cent, provided the money is obtained on the instalment repayment system. The annual charges on a loan at 5J per cent, on this basis compare favourably with those on a loan at 5} per cent, on a sinking fund basis.” The Mayor reported that all but £3OO of the total amount, required had been raised at 5 per cent.