DRAINAGE LOAN APPROVED

Taranaki Daily News, 6 August 1929, Page 9

DRAINAGE LOAN APPROVED

WORK IN NEW PLYMOUTH. Though declining to approve the raising of £15,000 for the payment of the first year’s interest and sinking fund, the Local Government Loans Board lias sanctioned the raising of £172,000 for the New Plymouth borough drainage loan. The original application was tor £187,000. ‘•The board has fixed the rate of interest at not exceeding 5-J per cent., as it considers that in the present state of the market for local body loans it should be possible to borrow at or under that rate,” said a notification from the chairman (Mr, R. E. Hayes) to the Borough Council. On the recommendation of the council in committee, which met on July 29, it was decided to refer the letter to the finance committee for a report.

It was pointed out by the board that the draft voting paper forwarded with the application would now require amendment by deleting the words, “and the interest and sinking fund thereon for ths first year,” and substituting a paragraph stating that was not proposed to pay out of the loan the interest and sinking fund for the first year. This was necessary in order to comply with the condition of the board's sanction and section 10 (d) and 11 (-1) of the Local Bodies’ Loans Act, 1926. At its meeting on July 23 the board sanctioned a loan of £172,000 for providing a borough drainage system and funds for advances to owners of premises to cover the cost of installing drainage. The term of the loan shall not exceed 26 years or the interest 5J per cent,, while it is provided that a sinking fund for repayment must be established at the rate of 2 per cent, a year, calculated on the amount raised.

Consideration of a letter from Mr. Ralph P. Worley, consulting engineer, Auckland, with reference to the supervision of the sewage loan works was .deferred. , . ■ .