HYDRO-ELECTRIC LOAN.

Taranaki Daily News, 1 February 1921, Page 4

HYDRO-ELECTRIC LOAN.

INTEREST NOT SUFFICIENT. FURTHER APPEAL TO MINISTER. The reply of the Finance Minister (Mr. W. F. Massey) to the New Ply* mouth Borough Council, rn connection with the application to advance the rate of interest to be paid on the hydroelectric loan to 6 per cent., was read at last night’s meeting of the council. The Minister said the council would be permitted. to pay a rate which would not return to the lender more than 5} per cent. Councillors expressed dissatisfaction with the reply, the general opinion being that the percentage allowed was not enough to attract investors, in view of the present rates ruling. The general manager (Mr. F. T. Bellringer) said that the deputation to the Minister brought under notice the fact that the Wanganui Council had permission to pay 64 per cent. To this the Minister replied that Wanganui had special circumstances with which he was fully conversant. The deputation replied that while Wanganui’s position was due to a breakdown, the case for New Plymouth was that the Council wanted a stand-by plant to prevent the overloading of the present machinery. The Mayor (Mr. F. E. Wilson) said the Council would agree that the position had been very ably represented by the deputation. He asked if the council desired to take further action. It was decided that the general manager reply by letter again pointing out fully to the Finance Minister the position, stating that in the opinion of the Council the rate stipulated by him was insufficient, and asking that he give permission to pay G per cent.