QUESTION OF A LOAN.

Hauraki Plains Gazette, Volume XXXIV, Issue 4529, 19 February 1923, Page 2

QUESTION OF A LOAN.

BO R< > UGH IMPROVEM ENTS. 'high RATE OF INTEREST. I At Thursday night's meeting of the Paeroa Borough Couniel Cr. Flair moved: That, the finance committee be instructed to obtain the premission of the Minister to raise a sum of £15,000 at a rate of interest, not exceeding 6 per cent., for the purpose of carrying on the sewerage scheme, reading, and domain improvements. Cr. Flatt said he did not think the ratepayers would object to the Council raising a loan even at. 6 per, cent., so long as they could see that the Council really intended to carry out satisfactory and permanent work for the betterment of the borough, and ratepayers generally. Cr. Leach supported the resolution, and said he thought the chance of getting money cheaper than 6 per cent, was very remote. He did not see that any good purpose could be . served by delaying the most necessary works for a matter o,f. years, until possibly money was cheaper. Cr. Vuglar said he thought that the proposal was a breach of faith with the ratepayers. He was quite in accord with the previous speakers as to the improvements necessary for the welfare of the borough. Cr. Marshall said he realised that much work was badly needed. However, he did not think the Council would be well advised to raise money at a larger rate of interest than tlie 5% per cent, already sanctioned by the ratepayers. He moved that the matter be deferred until another effort be made to get money at cheaper rate of interest. Cr. Edwards said he was in favour of Cr. Marshall’s resolution that the matter be deferred until after the election of the new council in April next, when a further effort would be made to obtain the money from the State Advances Office. The Mayor said he, too, was in accord with Cr. Marshall’s resolution, and stated that he had made repeated- efforts to raise money frpm various sources, but so far without success. However, he thought the Council should keep fja-ith with the ratepayers and not raise money at a higher rate of interest than the amount, authorised by them, because the urgency of the work in the borough did not. at. this stage, warrant the undertaking.

Cr. Flatt said that lie was desirous of seeing the town progress by carrying out the most urgent work. He said that he did not think there was a possible chance of raising even "£lO,OOO at less than 6 per; cent. After further discussion it was decided that the matter be held up until after the municipal elections, information to be obtained from the Minis-, ter in the interim.