TRAMWA DANS

Sun (Auckland), Volume III, Issue 632, 8 April 1929, Page 10

TRAMWA DANS

ALTERNATIVE PROPOSALS MONEY AT LOWER RATES The conditions imposed on the proposed transport loans in Auckland are regarded as satisfactory by the Transport Board, which has every confidence in being able to raise the money at under 5J per cent. The Loans Board has agreed to the Transport Board putting alternative proposals to the ratepayers in the transport area, one proposal being to raise £280,000 for a two-year programme, and the other being to raise all the money required for extensions, £526,600, which would take four years to spend and would be raised as required. An interest limit of 5J per cent, was imposed by the Loans Board, which also stipulated that the high sinking fund rate of 3 per cent. must be charged against the undertaking in connection with £501,600 of the loan, and that the term of the loan must not exceed 20 years. For the other £23,000, which is for buildings, a sinking fund of 1 per cent, over a period of 36J years is allowed. As regards the chances of borrowing the required capital at the interest rate stipulated by the Loans Board, Mr. J. A. C. Allum, chairman of the Transport Board, is optimistic. “I do not think we will have the slightest difficulty in getting all the money we require at a less rate than 5J per cent.,” he said. ‘'lt will be remembered that the last Auckland City Council loan was raised at 5 per cent, and the Auckland Electric-Power Board loan of £675,000 at 51 per cent. The transport undertaking is in a high state of efficiency and the assets have been fully maintained out of revenue. What is required now is for the public to sanction the loan proposals and let us get on with the business. 1 feel sure we will be able to raise all the money required on terms at least as favourable as those obtained by the two bodies I have just mentioned. We are going before the ratepayers at the earliest possible moment, and if it is possible to take the poll on May 8 we will do so.”