ELECTRICITY LOAN

Bay of Plenty Beacon, Volume 1, Issue 61, 13 September 1939, Page 5

ELECTRICITY LOAN

PROCEEDING WITH PLAN ' 1 BOR&tJGH DECISION i;i» >• u: H / 1 ■ 1 ' } ■' 5i- - - 1 In spite of the changed situation, created by the war and by the control of electricity supply the Whakataue Borough Council intends to take steps to apply for the loan of £7,500 for capital expenditure on reticulation within the borough. This was the decision of Monday night's meet, ing of the council, and it followed a discussion on the subject when it was emphasised that the charges on the loan could be met out of revenue, and though it would be necessary to strike a rate it w j as very improbable that it would be necessary to levy it.

The Mayor, Mr B. S. Barry, said that it was a recommendation of the finance committee that the Joan be raised. Its purpose was to relieve the council of capital expenditure which it was impossible to meet< outof revenue. The electrical engineer, Mr F. W. Lysaght, had estimated that £6, -WO would be required t6 complete the reticulation of new streets, replace old power poles etc, and take the supply to The: Heads. It was intended to get authority for a loan of Sp, 500 to give a margin of safety. RAISING MONEY. The money would be raised as vhv: work required it by hypothecating the debentures to the bank and drawing against them. A rate would have to be struck, but so far as lie could sec there would be no need to levy it. The new State housing blocks would have to be reticulated and it would be impossible to do the work unless the money was at the councils disposal. How. far the control of electricity would affect the council's plans he did not know, but they could go. along and get authority to raise the money. If they were not called on to do the work there was no need to touch the loan, which would be available for two years. He moved that the necessary application be made to the Loans Board for approval of the raising of the loan. Cr C. G. Caisley seconded this. PROFITS DRAINED OFF. Cr W. Sullivan said the phenomenal development of the scheme was draining off any profits. By using loan money they were going to get back the returns more rapidly. He paid tribute to the work of the electrical engineer in his control of the borough scheme over the last few years. Striking results hail been achieved. He did not think that the loan would put a penny piece on tne rates but it would rather assist then/ to reduce the charges to consumers. In reply to Cr Sullivan's question the Mayor said that though there was £700 set down for the supply of power to The Heads this would not be expended unless that area came into the borough, and Cr Sullivan agreed that this was reasonable and right..