LOCAL BODY FINANCE

Hokitika Guardian, 22 November 1924, Page 3

LOCAL BODY FINANCE

J .ON I MIN MARK FT IN A l)Y ISA BI.F, BI.FXIIFIM. November 20. I'hc linam in" ol' the Wnihnpai power scheme, which it is ostihinted will ultimately cost CHlH),()()() wns the subject ol mi intert.still" report nt the Power Hoard meeting hy the chairman i.Mr IJ. I'\ (•ohltcri and Mr \Y. .1. (Hiring M.P., on behalf of the hoard. They recently interviewed the Prime .Minister on the proposed loan, hut Mr Massey said the (iovernmont could not assist in raising money at the present time. and he referred them to Mr iiueklet :>n, the general manager of the Hank of New Zealand. Mr ISuckletuu recommended the hoard to raise the Col).000 or so which would he required for expenditure locally. in the first year of the works, hy means of CoOOO debentures, which could he lodged with the hoard’s hank as security for money advanced hy way of overdraft, and which could, when! opportunity offered, he sold. 'I his would (five the hoard an opportunity of looking around for the balance ol its nvuioy. lie considered that then* would he no d.iHieulty in arraii"in" a credit in London lor the purchase of the materials or machinery required there, hut owiii" to the adverse rate of exchange it would he inadvisable to float a loan on the market at present, as iL would cost one way ami another about H per cent to ,e;et the money out to New Zealand. The Hoard appointed a committee with authority to make arrangements lor the raising of such sums as the hoard would require in the initial stages of tin* work by mini ns of debentures. It was suggested that those he ulferod for sale in Marlborough.