BORROWING POLICY

Wairarapa Times-Age, 19 May 1939, Page 9

BORROWING POLICY

TARANAKI PENALISED PROTEST BY HARBOUR BOARD CHAIRMAN. STORY OF RECENT LOAN. (By Telegraph—Press Association.) NEW PLYMOUTH, May 18. It appeared that Taranaki had been penalised by more than £40,000, largely because of the mistaken policy hitherto pursued by the Minister of Finance. said.the president of the Taranaki Chamber of Commerce, Mr E. C. Hayion. today in a statement on the loan of £325.000 recently raised in Australia by the New Plymouth Harbour Board. “At the time the harbour board was being refused permission to offer more than 34 per cent the Treasury must have known of the flotation of an international loan at a higher rate,” said Mr Hayton. “It had been compelled to recognise tardily that money was about to regain something of its true value. “For Taranaki the whole transaction is regrettable. New Plymouth Harbour Board debentures have always been favourably recognised and not long ago its 4,| per cent debentures were sold as high at £lO5, and only a few weeks ago sales were made at £lO2. This proves conclusively that the board could have raised the amount required quite easily at 4.', per cent in New Zealand. “Had this been done there would have been many obvious advantages over the present arrangement. The New Plymouth Savings Bank undoubtedly would have taken up a large parcel of the loan at 4.', per cent, as it could obtain ample funds from its depositors at 34 per cent. This would have been an advantage to the district. The handling of the business itself would have given a certain amount of employment to a large number of New Zealanders, which is not the case under the present arrangement.

“Another phase appears to be obvious. Had the Minister of Fnance allowed the board- the raise the money in the country it would not have depleted the sterling funds, whereas the present arrangements hammers down that sterling balance which is giving him so much concern.” '