HYDRO-ELECTRIC WORKS.

Taranaki Daily News, 15 June 1921, Page 4

HYDRO-ELECTRIC WORKS.

NEW PLYMOUTH'S SCHEME. DIFHCULTY OVER FINANCE. The financial stringency’ having prevented the flotation of loans for hydroelectric development, the New Plymouth Borough Council decided recently to endeavor to secure" a portion or the moneys required outside New Zealand. To assist in this a Government guarantee to the loan was necessary and application was made to Cabinet for approval. It was not estimated there would ba any great difficulties in this course. At the usual meeting of the council on Monday night the Mayor (Mr- F. E. Wilson) indicated that the council’s efforts had produced no result so far and he doubted if there was a possibility of the loan being secured. The reply from the Government, however, he said, had not yet come to hand. A further difficulty is presented to the council by the communication from the secretary to the Treasury, which arrived yesterday morning. The letter from the department is to the effect that before consenting to give its guarantee the Government require the period of the loan to be extended in order that it will be paid off by the sinking fund during the term of the loan. This means that the date of the loan will need to be years instead of twelve years, as at present proposed. As the letter w T as not received in time for consideration at Monday’s meeting the matter has yet to come before the council.