£5000 INVESTED

Hauraki Plains Gazette, Volume 52, Issue 3269, 28 May 1943, Page 5

£5000 INVESTED

GOVERNMENT WAR LOAN PLAINS COUNTY COUNCIL NOTICE OF MOTION DISCUSSED “That the credit balance on April 1, 1943, of £14,591 4s Id as shown in estimates statement as presented by the clerk at the recent April, 1943, meeting be supplemented by the sum of £4OB 15s lid from the county fund and the two sums amounting to £15,000 be placed on fixed deposit in the Bank of New Zealand, Thames, for a period of one year as from June 1, 1943,” was a notice of motion moved at Wednesday’s meeting of the Hauraki Plains County Council by Mr J. W. Neate. Mr J. F. Mayn- seconded the notice of motion pro forma. \ Mr Neate said that such a large sum lying idle not earning interest was not in the best interests of the council. He agreed with the policy of the council in building up the reserves it had at present. The clerk, Mr E. A. Mahoney, explained that although the credit balance was large at the end of the year there were large payments to make earlier in the new year which reduced the balance considerably. It had always been his policy in the past to invest the county’s surplus funds on fixed deposit until needed. This year the council’s commitments were such that the sum mentioned by Mr Neate was not available for investment. He thought perhaps £sooo' could be safely placed on fixed deposit without the danger of the council having to go on overdraft. £5OOO Could Be Spared The chairman, Mr C. W. Parfitt, said he had gone into the position and agreed that £sooo' could be spared for investment and urged that it be placed in the War Loan. He moved as an amendment that £5OOO be invested in the Government War Loan. Mr C. W. 'Schultz seconded the amendment and other councillors spoke in support of it. Mr W. E. Hale said he did not agree that local bodies should make investments. They did not collect rates for this purpose. It was the duty of the individual to lend the money to the War Loan. The ratepayers will be asking why the council was striking such a high rate when it did not need the money, continued Mr Hale.

He suggested that only £2500 be invested in the War Loan. The chairman said to-day the council was only able to do bare maintenance. There were many jobs which should be done and the money had been raised to do them but due to the war they were.held up temporarily. The money should therefore be invested until the time came for this work to be done.

The amendment was carried and became the motion and was passed.