POWER BOARD LOAN

Te Awamutu Courier, Volume 78, Issue 7015, 4 February 1949, Page 5

POWER BOARD LOAN

REASONS GIVEN FOR PROPOSAL STATEMENT BY SECRETARYMANAGER Seeking information as to the why and wherefore of the raising of a further £50,000 loan, a Courier representative had an interview with the sec-retary-manager of the Te Awamutu Electric Power Board this morning. In reply to the question Mr M. Barnett stated that the loan was required for reticulation of new lines to the extent of between 60 and 70 miles and to give supply to 300 new consumers of whom 95% were primary producers. Some of the districts included are Wharepapa, Honikiwi, and several roads in the Pirongia-Te Pahu districts. Questioned further in regards to the special rate proposed to be struck, Mr Barnett said that it was impossible for any local authority to raise a loan unless security by way of a special rate is given to the lenders. Though this security is given the rate is only levied by a Power Board in the event of this revenue not being sufficient to meet its commitments. The Board’s revenue is obtained from the sales of electricity, not from rates. The Te Awamutu. Power Board has raised over £220,000 and has not yet had to levy any rates. All new work is guaranteed by the prospective consumers and this guarantee covers interest and sinking fund, and the probability of a rate being struck and collected is a very, very remote possibility, concluded Mr Barnett.