POWER LOAN DELAYED

Waikato Times, Volume 126, Issue 21038, 14 February 1940, Page 6

POWER LOAN DELAYED

RAGLAN SPECIAL AREA FINANCE MINISTER’S REPLY STERLING FUNDS TOO LOW Ministerial replies to the Central Waikato Electric Power Board's recent resolution regarding the delay in relation to the board's application for consent to raise a loan of £16,000 for reticulation work in the Raglan special area (No. 2 loan), were received by the board at its meeting to-day. As a result, the position was unaltered i.nd the board considered further efforts should be made to secure the loan.

At the last meeting of the board a letter was received from the Local Government Loans Board stating that in view of the general need for conserving the capital resources of the Dominion, it had been decided to refer back to the board, for re-submis-sion at a more favourable time, the application for the loan of £16,000 required to reticulate the special area, including Te Akau, Waimai and other portions of the County of Raglan. The board passed a resolution describing the Loans Board’s decision as inequitable. Consideration Later

The Minister of Finance, the Hon. W. Nash, replied to the board’s resolution, stating that there was, as the board would know, a shortage of sterling lands, mainly due to overimportation, but accentuated by the war. The shortage rendered it necessary to examine carefully every proposal that would entail heavy charges on sterling funds under the control of the Dominion. It was this circumstance that had the major influence on the loans board.

Mr Nash added that the request of the loans board to the power board to submit its application at a more favourable time provided an opportunity for early reconsideration when the supply of overseas funds had improved. The Minister agreed with the board that there was a need for assisting production, and he promised to support the board’s application if submitted at a later date. The Minister of Public Works, the Hon. R. Semple, replied to the board that the original loan proposal had the support of his department. The matter, it seemed, was now out of his jurisdiction and was rather one for the Minister of Finance.

The Hon. W. Lee Martin, Minister of Agriculture, replied that he would consult the Minister of Finance on the matter.

Mr G. Smith said some of the biggest guarantors of the Raglan reticulation scheme considered that if power were not supplied to the area soon they would be obliged to instal engines to generate electricity. If that were done, th e guarantors would, probably not require the board’s supply and would, therefore, withdraw their guarantees. Furthermore, power engines would use fuel from America, which would add to the drain on sterling funds. It was decided to communicate with the Loans Board, pointing out that danger.