Earthquake Loan Indebtedness.

Hawke's Bay Herald-Tribune, Volume 81, Issue 39, 9 November 1937, Page 4

Earthquake Loan Indebtedness.

SLIGHT REDUCTION IN INTEREST

Government Concession To H.B. Local Bodies £126,750 AFFECTED

Certain local bodies in Hastings and Napier have been advised by tbe Hon. Walter Nash, Minister of Finance, that a reduction of a half per cent. in the interest rates ^has been agreecl upon by the Government in respect of earthquake loan indebtedness. This advice which was received in this morning 's mail, apparently is the response to the repeated representations that have been made" at various times throughout the past four or five years for the Govern- ; ment to reconsider the whole mat- ' ter of local body indebtedness as > regards loans raised for earthquake rehabilitation of puhlie buildings and services. From inquiries made this morning it appears that tho local bodies to be advised" of the Government 's decision include the Hawke 's Bay Hospital Board, the Hastings Borough ■ Council, the Hawke 's Bay County Council, the Napier Harbour Board and the Hawke 's Bay Rivers Board. The earthquake loan, indebtedness of the local bodies concerned are as follow: — H.B. Hospital Board .... £66,850 Napier Harbour Board .. £30,500 Hastings Borough Council £11,000 H.B. Rivers Board ..... £11,000 H.B. County Council . . ... £3,000 Taradale Town Board . . - £2,500 Havelock" N. Town Board £1,900 Total £126,750

It is understood that all the above loans were on the basis (of 4 per cent. interest and that the Government has now decided to reduce this charge to 3| per cent. It will'be recalled that, about last June, a number of local bodies .were surprised to receive from the Treasury demand notices for thq payment of instalments of prineipal and interost on their earthquake loan. These demands created considerable anxiet.y, not only because local ' bodies wero bo'pef ul that the loan 'indebtedness would 'be wipe'd out, but mainly for the reason that, in the majority of cases, the " rates or. levies for' the- year - had -been practically finalised ■ and -no- -allowance had been made -for the -repayments on the loans in question. g From. the viewpoint, of . the local bodies the position was a serious one and opportunity was taken by the Hastings Borough Council, the Hawke 's Bay Hospital Board and the Hawke 's Bav Rivers Board to approach the Hon. D. G. Sullivan, Minister of Railways and Industry and Commerce, on his visit to. Hastings in July last, to place their position before liim with a request that he. take up the matter with the then acting-Ministo.r of Finance. • It was also urged at the same timo i that similar treatment to that accordod to the Napier JBorough — namely, tho cancellation of the total earthquake i loan indebtedness, should. . be made to apply to other local bodies. Similar representations, by lottor and personal interviews at Wellington, were made by a number of other local bodies coucerned, but the only reply received was to the effect .tfiat the matter was being held over jn t.ho meantime, pending the return of the Hon. Walter Nash, Minister of Finance, and his consideration of the -position.