POWER BOARD LOAN.

Timaru Herald, Volume CXXV, Issue 18539, 9 April 1930, Page 13

POWER BOARD LOAN.

MEMBERS DISCUSS POSITION. At yesterday's meeting of the South Canterbury Electric Power Board, a letter was received from the Local Bodies Loans Board in reference to the 10 per cent, supplementary loan recently applied for by the Board. The letter from the chairman of the Local Bodies Loan Board was as follows: —“Pursuant of section 6 (2) of the Local Government Loans Board Act, 1926, I hereby notify you that the application for sanction to raise the above loans were dealt with at a meeting of the Loans Board held on March 20. The engineer’s report to the Board dated January 14, shows that in addition to the amounts included in the present application, further money will be required for new extensions within the next few vears. The techlical advisers to the Loans Board are ilso of the opinion that additional loans in excess of the 10 per cent, supplementary loans now applied for will, ultimately be required, and in the circumstances, the Board decided to refer back the applications for consideration of the Board as to whether a poll should not be taken in each of the areas concerned for a loan sufficient to cover the estimated cost of the work included in the present applications, plus the estimated cost of extensions which will be necessary within the next three to five years. “It is suggested that it may be easier to obtain the approval of the ratepayers at the present time than it would be when the supplementary loans have been expended, and additional consumers have been connected up with the reticulation system. The tendency in such cases seems to be for those consumers already connected vote against a proposal to raise dditional loan money; and the fewer he consumers not connected, the lesser is the possibilty of a loan proposal for fresh extensions being carried.” At the request of the chairman (Mr J. Kennedy), the engineer-secretary (Mr G. W. Morrison) said that the amounts that would be required were as follows:—Geraldine special area, £29.572; Levels special area, £17.633; Mackenzie special area, £25.000; Waimate County special area. £34.320; Waimate Borough special area £7020. The chairman said that members would recall that the engineer had fullv reported on the matter on January 14. There was a time in the history' of local bodies when they did not have to apply for the 10 per cent, supplementary loan, but now the Local Bodies Loans Board had full control. He said that it spoke well for the engineer's report that it had been so favourablv received by the Local Bodies Loans Board. The matter had been considered by the executive, and it was now open for discussion by the Board from the point of view as to whether they should take up the loan, or adopt the suggestion contained in the Board’s letter. The chairman further stated that he had gone fully into the matter and with the ob.iect of making the whole position public, he intended to give notice for the next meeting that the Board consider the advisability of lifting the 10 per cent., or of taking a poll. Members would have a month to consider the matter.

Mr C. J. Talbot asked whether it would be as well to indicate the amounts.

The secretary said that it was not necessary to do so, for all the amounts were stated in his report. They had to advertise fourteen days before the next meeting, and call for objections. <Mr J. C. South: “Is there a time limit to the loan?" The secretary: “We have two years from the time sanction is granted by the Loans Board, until we take a poll." The chairman: “They practically say that we can go to them with a request for a loan, and thev will authorise it.” Mr Mackenzie: "The amounts given by the secretary do not tell us much." The secretary: “The whole of the facts are set out In my report of January 14. copies of which will again be sent to members.”

The chairman then gave notice to move as follows:—“That public notice in the prescribed form be given that it is the intention of Board at its meeting to be held on May 13. 1930. to consider a motion to firmly to the Local Government Loans Board for its sanction to the raising of a supplementary loan for the purposes of completing electric works in Geraldine. Levels. Mackenzie. Waimate Borough and Waimate County special areas.”