POWER BOARD LOAN

Evening Star, Issue 20053, 19 December 1928, Page 18

POWER BOARD LOAN

OBJECTIONS TO CONDITIONS “la my opinion the provisions are 100 stringent,” said tbo Chairman (Mr W. B. Galloway) of the Otago Electric Power Board in referring to the conditions under which tho board was informed it could raise a loan for the reticulation of the Owaka district. The Local Government Loans Board informed the board that sanction had been given to the taking of a poll for tho raising of £16,500 as the Owaka construction loan of 1928. Tho conditions were that tho term of the loan was not to exceed twenty years; that 5J per cent, interest was to bo payable; that a sinking fund of 3 per cent, was to be raised; that no portion ol tho interest or the sinking fund was to bo paid out of tho loan; and that the reticulation should bo undertaken only where a guaranteed revenue of 17 per cent, was obtainable. Tho Chairman said it was going to he a hardship on tho board to raise the Joan under such conditions. The board was trying' to give service, but this was going to bo a hardship. The Engineer-manager (Mr J. C, Collins) advised the board- to strenuously oppose the 3 per cent, sinking fund. One per cent, would pay tho'loan in 36i years. Mr P. Briscoe said the ■ conditions were going to bo a very great hardship on the board. Mr H. M. Driver said ho had thought The Loans Board was out to help power boards, but in this case it seemed to be hindering them. A sinking fund of 1 per cent, would bo sufficient. It was decided, on the motion of Mr Briscoe, seconded by Mr Driver, that, since the Public Works Department’s regulations compelled tho board to maintain its reticulation in first-class condition, the board considered that a J per cent, sinking fund was amply, to Air.iont.