COUNCIL’S INSURANCE BUSINESS.

Hokitika Guardian, 19 August 1926, Page 3

COUNCIL’S INSURANCE BUSINESS.

NO SHAKE FUll THE STATE

Ul'l'MCJi. AUCKLAND, Aug. IT. Tljo appo* l !Linent of the insuraines nt Jlanakau County Council was again discussed to-day by the Council, wnun a. motion to give the State iusuranee Ullice a third of the council’s business was rescinded on the casting vote of the chairman, Air L‘. .M. Waters.

At it previous meeting of the council a letter from the South British Insurance Company stated that it liati been informed that 50 per cent, of the insurances would be given to it and 50 per cent, to the Aew Zealand Insurance Company, in consideration of the companies granting the council a loan at the time when the local body could not raise money elsewhere. -Mr .f. S. Dickson, AI. I’., said the State Office had been of great service to the country and they were treating the South British Insurance. Company and Now Zealand Insurance Company fairly when they gave them cadi a third of the council’s insurance. They should assist the State Office as much as possible, as any loss it sustained was made good by a subsidy from the Consolidated Fund. So far the office had paid its way.

IMr Li. Gilbertson said the insurance companies regarded loans to local bodies as gilt-edged securities. At the time the loan was made many preferred to lend money at 5:1 per cent, to local bodies instead of putting the money out as mortgage on land at inflated values. ' The chairman: If the security was gilt-edged tor insurance companies, why was it not gilt-edged security for the Stijte Office. -Mr Gilbertson: Did the State Office turn you down ]

The chairman : Yes. It was not prepared to lend money under 6 per cent. Mr Gilbertson: Did the State Office have the money? I understand the Department did not have money to lend.

The chairman : That is so. No other hotly was willing to lend money at the

Mr I'. Ivearsley: The chairman and J waited on the insurance companies and we had a hard task to get the money at 5} per cent.

Mr C. S. Hl’Cull urn said he supported the motion to give one-third of the business to the State Office, but lie now 1 ealised that the council wa.s under an obligation to the companies. The rescinding motion was carried on the casting vote of the chairman.