THE MONEY QUESTION.

Shannon News, 24 March 1922, Page 4

THE MONEY QUESTION.

FINANCING THE HYDRO-ELECTRIC SCHEME.

RATE TO BE STRUCK AS SECURITY

The Horowhenua Hydro-Electric Power Board commenced practical operations on Tuesday in deciding to strike a rate of one-tenth of a penny in the £ on the capital value of the district. The decision was arrived at after a statement hade been made by the chairman (Mr Monk) that a committee consisting of Mr Seifert, the secretary (Mr Goldsmith) and him self had approached the Bank of New Zealand with the object of securing an advance.- The ‘bank had expressed itself as willing to do so, but had required from the Board security in the shape of revenue or expected revenue. As the Board (lid not expect any revenue for some time it was necessary to strike a rate, but it would be only in the nature of a security and the Board would probably never have to collect it. The secretary then informed the Board that the capital value of the Horowhenua County had been raised by the valuation last year from approximately £3,500,000 before the war io £5,250,000. The power district was much largest hr extent than the county, which it included, and would probably be valued'at up to £7,000,000. A rate of one-twentieth of a penny on that basis would produce £I4OO or £ISOO, while on £6,000,000 it would be productive of £1250. ’

The chairman considered it would be advisable to make the rate onetenth of a penny, and the Board would thus have a couple of thousand or so at its command.

This was put into the form of a motion and carried, and the resolution will be confirmed at the next meeting of the Board. A COMBINED LOAN. In regard to the greater question of raising the huge sum' necessary for the reticulation, a communication was received from the Manawatu-Oroua Electric Power Board inviting representation from the Horowhenua Board at a conference to be held in Palmerston North next Monday for the purpose of arranging a deputation to the Prime Minister and Minister of Public Works with a request that Government backing be afforded a combined loan proposal for several power boards. The Rangitikei and Dannevirke boards had also, it was stated, been invited to send representatives. It was decided that the chairman and Messrs. Seifert and Goldsmith attend the conference. FUTURE MEETINGS.

It was decided that the Board meet at Levin at 9 o’clock in the morning on the third Tuesday of each month, with, the exception of next month, when to avoid clashing with the Easter holidays, the meeting will be held on Tuesday, April 25.