TUATUAMOANA DRAINAGE

Te Awamutu Courier, Volume 55, Issue 3941, 18 August 1937, Page 12

TUATUAMOANA DRAINAGE

MINISTER SUGGESTS COURSE OF ACTION. A GRANT REFUSED. The Hon. P. Fraser, acting Minister of Finance, wrote to Monday’s meeting of the Waipa County Council in regard to the Tuatuamoana drainage district, as follows: “With reference to the representations made on behalf of your Council for a grant of £BOO to enable the liabilities assumed by your Council on the abolition of the Tuatuamoana drainage district to be met, I am now in a position to inform you that the request has received the careful consideration of the Government, and that a grant cannot be approved. “The State Advances Office, however, is prepared to agree to the conversion of the total amount outstanding, including arrears of interest, under the provisions of the Local Aut.h-

orities Interest Reduction and Loans Conversion Act, 1932-33, and section 20 of the Finance Act (No. 2) 1936; the new loan to be for a period of 35 years and to bear interest at 3J per cent. This offer is made in view of the special circumstances of the case, and represents a substantial concession to the property owners in the district. “If the offer is acceptable to your Council, I would suggest that you communicate with the Secretary of the Treasury, who will make arrangements for the finalising of the conversion scheme, which will, of course, be subject to the approval of the Local Government Loans Board. “The existing legislation does not permit the inclusion of the arrears of interest in a conversion loan, but I am prepared to arrange for a clause to be inserted in the Local Legislation Bill during the forthcoming session to enable this to be done.” Mr F. L. Onion thought the ratepayers concerned should be advised of the effect of the letter, with a view to them taking further action. The chairman, Mr S. C. Macky, said there was some talk of a settlers’ delegation going to Wellington next week to- press their representations. If that were so, both he and the clerk, who would be m Wellington at the time, would gladly co-operate with them. The clerk, Mr T. Grant, said a meeting of the ratepayers in the old drainage board district had been held last week, and a precis of the acting Minister’s letter had been placed before the meeting.