TUATUAMOANA SWAMP

Te Awamutu Courier, Volume 58, Issue 4190, 29 May 1939, Page 5

TUATUAMOANA SWAMP

DRAINAGE BOARD’S AFFAIRS. LOANS CONVERSION SCHEME. In a communication read at Wednesday’s meeting of the Waipa County Council, the secretary, Local Government Loans Board, dealt with the loans conversion scheme in connection with the late Tuatuamoana Drainage Board’s affairs. A scheme of conversion was submitted to a meeting of the Local Government Loans Board on April 27th, when approval was given on the terms set out below. The secretary asked for the confirmation of the County council. The date of conversion proposed is July 31, 1939, and the loans are to be converted in terms of section 20 of the Finance Act (No. 2), 1935. In addition to the loans raised by the ate Board, a transfer of liability is being made from the Lower Mang-a-piko Drainage Board in terms of section 9 of the Local Legislation Act, 1938. This transfer is in respect of the loans of the Lower Mangapiko Drainage Board raised from the State Advances Corporation for the purpose of improving the Mangapiko stream, and does not include the loan of £lOOO for the same purpose raised from the Public Trustee. It is, the secretary pointed out, unfortunate that this was omitted from the legislation, “but your Council will require to remain liable to Lower Mangapiko Board for seven-fortieths of the annual charges in respect of this amount of loan. The amount of liability transferred to your Council from the Lower Mangapiko Board is £385, this being calculated on the amount of the loans raised. The conversion loan will be fixed at the amount of the loans raised, plus arrears of interest outstanding at the date of conversion. This capitalisation of interest was provided for in section 9 above quoted.” . Continuing, the Loans Board secretary wrote: “The term of the loan will be 35 years, and interest will be at the rate of 3A per cent. Provision is to be made for repayment of the loan in half-yearly instalments of principal and interest over the term of 35 years. As a security for the new securities to be issued on conversion, your Council is to make and levy a special rate on a unifom scale on ' all ratable property within the area comprised in the Tuatuamoana Drainage District immediately prior to the abolition of that district. Provision to that effect is contained in section 9 of the Legislation Act, 1938. “This, in brief, is an outline of the scheme as approved by the Loans Board. I should be obliged, therefore, if you would have this dealt with as expeditiously as possible by your Council and notify me to the result of their deliberations in due course. Upon receipt of information that the scheme meets with approval, arrangements will be made to have the required Order-in-Council issued.” Councillors were not very enthusiastic about the whole matter, and it seemed that they felt the County had been imposed on years ago by having control and responsibility foisted unon them as a result of the Commission which sat a few years ago; but realised that there was little or no other recourse. It was remarked that the Minister had promised to write off accumulated arrears of interest on the loans raised by th|e defunct Tuatuamoana Drainage Board. There was also a sum of £385 which was added to the conversion amount. This represented a proportion of the loan raised by the Lower Mangapiko Drainage Board for the purpose of improving the Mangapiko stream. Another point made was that there are accumulated arrears of interest on that loan, and the chairman suggested that that should be added to the Conversion Loan, and, if necessary, statutory authority should be obtained for the purpose. The Council instructed its clerk to seek fuller information on one or two points, and the matter will be dealt with at next meeting of the Council.