REDUCED INTEREST

Hokitika Guardian, 8 July 1932, Page 6

REDUCED INTEREST

STATEMENT BY PREMIER.

ISSUE CONSIDERED VERY_FUU-Y.

WELLINGTON. - July, 7

Regarding the Sydney cable concerning the New South Wales Interest Reduction Act, Mr Forbes stated today that the Act m,ade provision for a general reduction of interest amounting to 22% per cent.. On receipt of, detailed information regarding this . legislation the New Zealand Government very fully considered the effect that it would have on payments of interest to Aus-, tralian holders of New Zealand Gov-, ernmeqt securites, and, while advice was tendered to the effect that. the legislation directly affected the inter-, est payable in Neiw South Wales on Dominion local body securities held by persons resident in New South Wales, the position as affecting New Zealand Government securities was. not altogether clear. . . ■ ; “The‘ Act was considered to cover certain dasses of securities with special conditions attached thereto,” said Mr Forbes, “and not to apply to all the New South >Vales holders' of New Zealand Government securities. Cabinet decided, however* that it was not desirable for this Government to take advantage of the legislation of a sister .with whom we were on friendly ’terms, and- whose legislation was enacted more! particularly for internal reasons.” it isunderstood that, with reSpect to local body securities, the question is to come before. the;€onrts -ipr review.