N.Z. CONVERSION

Hokitika Guardian, 1 March 1933, Page 6

N.Z. CONVERSION

SAVINGS BANKS DEPOSITS

STATEMENT -BY MR COATES

(Per Press Association — Copyright )

WELLINGTON, March 1

■'‘Legislation is not ne c ei?sary to effect the reduction ‘to thre e per cent, in the rate of intercut, on savings- bank deposits,” Mr, Coates explained to-cf-ay. rower was taken uhdi&r the National Expenditure Adjustment Act to fix by ornor-i'ii-eouiicil, the maximum rate which may be -paid on depose to,” ■ he added.-

-All order-in-council giving 011-eet to the statement lie had mane rn 'die ;Ho.us e laisb night would be issued’ as soon as time permitted.

In reply to a. question lie' said that it was not .proposed to make any alteration jn th e maximum amount which may -be withdrawn at one time by any one depositor.

SAVING TO LOCAL BODIES

APPROXIMATELY .£200,000

WELLINGTON, March 1

-A saving ;-oil approximately £200,050 _% estimated to result to local bodies from th e ' increase to twenty per cent, fit the reduction of interest on focal •Ijody debentures. Mr <G°ates pointed, ’out this morning.

’ Local bodies will be a-h-10, as '-was ’the case with -th e original stamp duty, to utilise the rebate in the' -reduction of rates: to ;the ratepayers, actually at the conclusion of the major internal debt conversion. A‘ conversion of the indebtedness of individual focal bodies could be undertaken, this to be carried out on the basis‘of -an interest yield of 4J per cent.: . Varying conditions of local bodies, in resnect of rates, mte-veist, maturity dates,’ sinking-funds, and security, on which money was borrowed,- especially in 'special rating areas, render it advisable for each local body to formulate its own scheme for conversion-, and ‘prevision for enabling such to be carried out will be.. made .in. tho forthcoming bill. i ” - -\