LOCAL BODIES

Hokitika Guardian, 27 April 1932, Page 6

LOCAL BODIES

INTEREST ON OVERSEAS DEBTS AUCKLAND .MAN'S VIEWS.

(By Telegraph —Per Press Association)

AUCKLAND, April 27

The opinion that extension of time for the payment of local bodies’ overseas interest obligation should be sought, was expressed to day, in an interview, by Mr J A- C. Allum, chairman of the l Auckland Transport Board. He said that reductions in local body expenditure, so far, had! been achieved by wage and salary reductions, rei-rGnchment, and (reducin the purchases of stores.

This-meant that there had been less work, and consequently less wages paid to smaller staffs. Economies, so far, generally speaking, had been- at the expense of the worker, and the time had now arrived to decide whether economies should continue in that one direction, or whether they should be appled! to capital charges, too. He had no hesitation in saying that, to continue, to reduce wages and dismiss workers as the only remedy, would not only he inhuman but would spell ultimate ruin for the country.

The Government’s interest reduction legislation applied only to interest payable within New Zealand. Many local bodies had raised a large proportion of their loan in England.

The British lender had found it necessary to make concessions in connee:ion with loans to foreign countries, and surely 'it was reasonable to expect that an approach from the Dominion foi some relief during the present crisis wouid be favourably received and respun ded to. “No doubt it showed a line spirit t<> say we will pay our debt's, said M) Allum, ‘“and I reiterate that our debts must be paid, but after all we must see to it that we do not first pay our debts and then find ourselves in the position tha.t we have insufficient money to run the country. What I have m mind, and 1 want to make it clear, is only an extension of time in which to meet our liabilities, and T make no suggestion of not meeting them. Representation.* should be made from the proper quarter to British .investors with this end in view.”