SINKING FUNDS

Hokitika Guardian, 28 September 1932, Page 2

SINKING FUNDS

REQUEST FOR POSTPONEMENT OF PAYMENTS. PRIME MINISTER’S REPLY. WELLINGTON, Sept. .26. “There can be no doubt that having regard to the. purposes for which sinking funds may; legally be used, landers arte entitled 1 to regard .such funds as •part of their security,- and the postponement of the annual contributions could reasonably he considered a breach of faith, with the lenders unless their concurrence wlas ojitiined,” Prime Minister (the Rt. Hon. 00W. Forbes), replying to a resolupassed by the executive of -Che jifewC Zealand Counties’ Association, asking for the postponement of the repayment of 'County Council sinking funds far two years owing .to the financial stringency among counties caused by the non-payment of rates. Mr Forbes said it was usual in the case of 1 octal body loans to include in the .loan proposal voting - papers the amount of the sinking fund to be set asidte for the repayment of the loan, and! Senders taking up local body securities • would to some extent be influenced by the provision made. He had no knowledge of any scheme for the postponement of sinking fund, payments', stated, to have been ) Carried out recently in England in respect to local loans, and ho asked , for further information on the point. So far as lie was aware, the Imperial Governwent was not - suspending any contr&ctual sinking funds or other contractual obligations for repayment. The only arrangements he knew of regarding suspensions referred to voluntary appropriations of revenue and surpluses for the redaction of debt.