INTEREST REDUCTION

Rotorua Morning Post, Volume 1, Issue 188, 1 April 1932, Page 5

INTEREST REDUCTION

("Post Special Commissioner.")

principal approved but details not yet dis closed finality not yet reached

"WELLINGTON, Thursday. Although it is stated on good authority that Cahinet has approved the desirability of an arbitrary reduction in interest rates and rents, the Prime Minister, the Rt. Hon. G. W. Forbes, denied to-day that finality had been reached on the question. He said that such an importapt alteration in thp existing business system as a reduction of interest rates required the exbaustive consideratiop of all its differenf aspects before any action was taken, It was a very complicated matter and presented many difficulties. "However," he addec[, "by the time Cabinet has cpmpleted its consideration of the question of economies geperally, I think we will have sqmething tq present that will create some little It \s understood that a method qf equitably readjusting interest and rent charges is exercisipg tbe minds of the Ministry more than the actual pimciple of arbitrary reduction, and that an endeavqur is now being made to draft tentative legislative machinery to give effect to th.e idea, subject to the approval of .Cahinet. . One of the many consideratiqns thqt rises js the necessity of ensuringequality of sacrifice throughout^ tl}e community and of making provisiqn for the lender who fyas already cpnceded a reduction in interest to snffer a further reduction only np to the maximum imposed on others. ^ The questiqn of rent reductions also has its complicatipns, . but it is believed that the main principle involved ■ is tjiat of effecting reductions ip.leapes qf priyate dwellings rather tban of business p'remises. The Brime Minister declipes to discuss the work t^at Cabinet is dofnp on the grqund that a general idea qf the -proposais to fbe c.arried 0^ will pe given in the fiinancial statement tq pe prqsented in the Hous.e qf Ilepresehtatives shortly.