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Hokitika Guardian, 10 December 1932, Page 6

A number of interesting amendments governing the financial transactions of the Government and local bodies are embodied in the Finance Bill. In accordance with the statement made by the Prime Minister at Stratford on November 7th, legislative effect is. given to local authorities to carry forward sinking funds at the tedemption of loans. Under the existing law local authorities are required to ut lise the full amount of their sinking funds at maturity date, and they ate authorised to borrow only the amount cf the difference between the total amount of the maturing loan and the accumulated sinking fund held for .its redemption. To obviate a substantial loss of sinking fund moneys in the remission of these moneys to London, as Mr Forbes stated, it is proposed to authorise the local bodies to raise the full amount of the maturing loan by way of renewal loan and to. carry forward the existing sinking fund as the nucleus of the sinking fund for the renewal loan. Ample safeguards have been provided to ensure that the sinking fund will not pass back info the local authority, but will lie definitely set aside us part of the sinking fund of. the renewal loan. The sanction of the Local Government Loahs Board must bo obtained before any renewal loan.