Local Body Loans

Waikato Times, Volume 117, Issue 19545, 6 April 1935, Page 7

Local Body Loans

OPERATIONS OF BOARD.

REVIEW OF PAST YEAR. BENEFIT OF INSTITUTION. ' (By Telegraph.—Press Association.) WELLINGTON, Saturday. In a statement issued to-day the Minister of Finance, the Hon. J. G. Coates, reviewed the operations of the Local Government Loans Board for the year ended March 31, 1935, and also outlined the position since the Board commenced to function on April 1, 1927. The Minister stated that the total applications In respect of general loans (i.e., exclusive of conversion schemes), received by the Board during the year ended March 31, 1936, amounted to £4,634,343, which Inoluded £3,859,363 of new applications and £774,980 previously referred back and now reconsidered. Regarding the disposal of capital, moneys it was necessary for the local authorities who receive moneys by way of sales of assets bought out of loan moneys or repayments of advances, to obtain the approval of the loans board, in certain cases, before such moneys could be used again. The Board dealt with applications under this heading, totalling £64,938. Local bodies are authorised subject to the consent of the Loans Board to divert unexpended loan balances to other purposes, provided the original programme has been completed. During the year the Board sanctioned the use of £33,033 of moneys coming within the provisions of that section. Effect of Conversion. “Since the Board's inception the total applications amounted to £32,810,434; of which £16,099,550 were sanctioned for new works and £13,627,034 were sanctioned for the redemption of loans. The difference, namely £3,089,850, represents the amounts referred back and declined by the board during the period. The amount sanctioned for the redemption of loans is substantial, but from now on the total of loans dealt with under this heading should be considerably lower. “In view of the fact that the major portion of New Zealand’s domiciled debt -has been the subject of conversion schemes, under which loans have been so arranged as to obviate the necessity for renewal, renewal operations in respect Of the overseas debt will of course still be required. The first conversion schemes were 'dealt with by the Loans Board in September, 1933, and since then the total debt converted amounted to £39,130,337, which, after the addition of premiums and provided for by legislation and the utilisation of sinking funds, was.converted into new securities totalling £38,532,000. The amount of debt as at March 31, 1933 not yet dealt with in conversion schemes, therefore amounts to approximately £9,113,867, but of this •sum approximately £2,000,000 have been repaid or renewed in the meantime, thus leaving approximately £7,000,000, which has not yet been converted. The time within which Orders-in-Councib consenting to -the conversion of existing securities may be issued -has been extended to December 31, 1935, and it is confidently expected that by that time the bulk of the remaining debt will have received attention. Tribute to Board Members. “Before concluding,” stated Mr Coates, “I would like to pay a tribute to the work -of the Board, the personnel of which had remained unchanged since its inception. In the field of local body finance the Board is exercising a steadying and beneficial influence. Its work in connection with local body loans conversion is worthy of special mention, and through its efforts the Board has earned the goodwill of local bodies throughout the Dominion.

“I am oonvlnoed that as a result of the conversion legislation local body loans finance In this Dominion has derived Inestimable benefit.”