Community loans scheme scratched

Ruapehu Bulletin, Volume 11, Issue 530, 5 April 1994, Page 1

Community loans scheme scratched

Establishing a community Joan scheme is now off the agenda for the Ruapehu District Council. Councillors discussed a report on a loan scheme for community organisations which had been requested by the Taumarunui Ward Committee. The council heard that the present Hillary Commission scheme can be run as either a loan scheme or a grants scheme and that the council had decided on the grants scheme partly because of the excessive costs

associated with administering loans. Council CEO Cliff Houston said there was a lot of documentation required for a credit agreement. He said a mark-up would have to be added to interest rates charged to allow for the high risk factor involved, which would make the rates quite high. "The Hillary Commission is extraordinarily expensive in relation to the amount of money distributed," he said. "So many dollars are going into Turn to Page 2

Loans scheme

FROMPAGEl processing applications costs which are borne by the council, and there is an awful lot of time taken up by the process." "I wonder if in these days of low interest rates it is appropriate for council to get into (a loan scheme)." Councillor John Compton said a better approach could be for council to act as a facilitator to help community groups find funds. Cr Bobby Vine said the Waimarino' s sports, education and development fund was a good scheme and that a similar scheme could be of advantage to the northern wards too.