FINANCING POWER BOARDS.

Otaki Mail, 31 March 1922, Page 1

FINANCING POWER BOARDS.

LOCAL WANTS LOANS 'CONSOLIDATED. GOVERNMENT TO BE APPROACHED, An important conference of representatives of the Wanganui-Rangiti-Manawatu-Oroua, Horowjienua, xnd Dannevirke Hydro-Electric Power •Joards was held in Palmerston North on Monday. • The .conference was convened by Mr. J. A. Nash, M.P.,- chairman of the ManawatiiJroua Board, tor the purpose of "endeavouring to get the Boards mentioned to unite in getting the Government to agree to the raising of a consolidated loan for the works in their respective districts. The deliberations resulted In the conference deciding to ask the Government'to give a State guarantee to a consolidated loan.

lUr. J. A. Nash, M.P., presided, other representatives present being: ,\ unganui-Kangitikei, Messrs HopeJibbons, Leithbridgc, and Purnell; .-.tanawatu-Oroua, J. H. Vincent, M. A. Eliott and the chairman; Horoivhenua, G. A. Monk, A. L. Seifert, and Goldsmith; Daluievlrke, Elder, Ransom, and Craven. The chairman, in opening the proceedings, said that financing was the most important matter in connection with the construction of power boards throughout the Dominion. His Board had felt that while it was in a position to go on to the London market for the security, a consolidated loans would be obtained at a cheaper rate. The, better way would be to have a combination of power boards. Personally, Mr. Nash had been worrying the Minister for Public Works in ihe House urging the Government to take the total responsibility of moneys for electric power boards. The last promise he got was that during the recess the Government would go into the matter.

STATE GUARANTEES. When Mr. Massey was in England, lie cabled to the effect that no further state guarantees were to be given for loans. However, that did not alter the fact that there was a responsibility upon the Government with regards to the financing of power boards. Even though the boards in and around that district might lay a claim fur help in the matter, applications would be made in a general way by boards all over New Zealand. The question was: how far should this conference go in embracing other areas in the matter of the consolidation? The chairman mentioned that Tararua had asked to be allowed to join in, while it was also suggested that Masterton should be included. This would be for the conference to tleeide. About a miUSou j>ounV.would be required by the boards represented there. The questions were: Should they put. a joint loan on the market. themselves, or should they af:k the Government to give the loan a State guarantee? .He thought the combined loan with a State guarantee the proper thing. They must get their money at a reasonably cheap rate. He pointed out that by giving assistance the Government would begin to receive its income earlier than if the individual boards had to s«ek ther own loans. It was the duty of the Government to become the guarantors of the boards, and to undertake the flotation of the loan on the London market. it would be extremely difficult, in fact well nigh impossible, to get the money in New Zealand and until finances were assured boards could not enter Into any obligations. In conclusion Mr. Nash hoped the conference would agree to approach the Government with a united front and ask for the State backing of a consolidated loan.

IN FULL ACCORD. Mr. Ransom (Dannevirke), said he was in accord with the opinions expressed by the chairman. The only point that might concern them was that the loan proposals had not beeu definitely settled. Should they bs. disposed of before the Government was approached? Of course, there would be no difficulty in carrying the loans. Would the Government not want to know how much was required?

Mr. Nash replied it was impossible to say how much would be required and they could not delay the scheme any longer. It was for them to go to the Government and extract an absolute promise that it would undertake the flotation of the loan. Mr. Leithbridge (Wangauui). was also quite in accord with the views of Mr. Nash.

THE QUESTION DECIDED. Mr. Hope-Gibbons (Waagttnui) then moved: "That it is desirable that the four boards represented at the conference approach the Government with a request £o raise a State guaranteed joint loan." Mr. Monk (Horowhenua), thought the proposal a good one, but said that they should endeavour to point out how much money would be requir. ed. The motion was put and carried, and it was agreed that the representative* present form the deputation. After discussion it was decided to include the Tararaua area in the joint loan, thus making it affect five areas. On the motion of Mr. Leithbridge, It was agreed that the deputation which Is to wait on the Government, should make ac endeavour to obtain a definite answer from the Minister of Public Works concerning the price that wUI be charged for power from Mangabao. »! FINANCING CONSUMERS. Mr. Ransom (Dannevirke) urged that in arranging loan proposal* the boards should make a proposition in the way of financing consumers requiring assistance. This would help the proposal considerably. At times such as-the present tbere would be many people, particularly farmers, who would like to be joined up but could not afford the expense. By arrangiaar the necessary security, farmers and others could be assisted, if provision were made in the proposals. The chairman said he thought it was" a good suggestion tut pointed out it was a natter entirely fcr th« board to deal witi. The conference then closed.