LONDON INTEREST

Hokitika Guardian, 22 December 1933, Page 5

LONDON INTEREST

POWER BOARD & GOVERNMENT

NEW CLAUSE IN FINANCE BILL.

(Per Press Association -Copyright).

WELLINGTON, December 21. A new clause has been added to the Finance Bill No. 2 to facilitate a settlement between the Government and the Southland Power Board regarding the interest payments in London. This clause empowers the Board to borrow money in London to meet differences between the amounts payable in sterling and in New Zealand currency on its overseas loans, and repay that sum one of sinking fund. A clause in the Finance Act, 1928, empowered the. Govern-or-General by Order-iii-Council to authorise a Power to borrow money m London to meet charges on land, that was guaranteed by the Government Tile clause introduced to-day provides that money so- borrowed may be repaid out of sums standing to the credit of the sinking fund of the loan on which the money is borrowed. In the Legislative. Council, replying to a question asked by Sir J, Allen. Mr Masters said the Government had received a cablegram from the High Commissioner in regard to.the decision of the House of- Lords in the appeal case, Adelaide Electric Supply Co. v Prudential Assurance, from which it appeared that in the course of its judgment, the House of Lords traversed the judgment in the Broken Hill case.

“It is not quite clear, ’’ Mr Masters said “just what effect the decision in the .Adelaide case will hav e on the Auckland Transport Board, and Southland Electric Power- Board, imt the fact remains that the House of Lords, when allowing the appeal by the Adelaide Electric Supply Co., stated that in their opinion, Justice Mauglian and Lord Hanworth in the Broken Hill case, were correct, and that judgment of the majority in the Court of Appeal should be treated as over-ruled. The Government is jn communication with the High Commissioner, with a view to obtaining further information on the point.”