CITY SINKING FUNDS

Wanganui Chronicle, Volume 76, Issue 97, 27 April 1933, Page 6

CITY SINKING FUNDS

QUESTION OF POSTPONEMENT LOCAL BODIES DO NOT AGREE “I agree with Air Hogan when he says the City Council has no power to suspend the payment ot sinking funds,” said the Mayor, Mr N. G. Armstrong, last night. “Jlis suggestion that that be done ig not original. It •came up first of all when Oamaru asked for authority to postpone payment and the Government said ‘No.’ Blenheim brought it up and it camo before the Municipal Association. It was found that local bodies differed hs to whether it was a wise policy or not, and there was no chance uf getting it past the executive of the Municipal Association, so what use would there be in applying to the Government! “Aly own view of the matter has been that a lovai body should have the option of postponing payment for one or two years. The jnoney might come in handy to do any new work, such as renewing thc water supply lines.” Air Armstrong doubted, however, whether it would be possible to make any postponement with regard to loans raised in Australia or London. A definite contract had been entered into there and if the sinking funds were not being paid the underwriters simply wouldn’t underwrite thc loans. The underwriters had the balance-sheets of all New Zealand local bodies, and nobody was more competent than they to assess tho financial position of each. Wanganui, when raising tho loan on London recently, had been fortunate in having two verv good friends in Messrs Cecil Wray and Chinchin. Air Wray had been on a previous Wanganui Borough Council and Air Chinchin had been manager of the National Bank here. It was due to their efforts and the favourable reports made by the Bank of New Zealand, that, gave Wanganui the distinction of being the only local body in New Zealand to get a renewal through at that t’mo—a time that was most unfavourable