DECISION OF SOUTHLAND POWER BOARD NOT EXPECTED

Rotorua Morning Post, Volume 3, Issue 620, 26 August 1933, Page 5

DECISION OF SOUTHLAND POWER BOARD NOT EXPECTED

(Press Assn.—

DEVELOPMENTS AWAITED

-By Telegraph — Copyrlght).

London, August 24. The city editor says that the Sduthland Electric Power Board decision to pay future interest to London bondholders in New Zealand currency has surprised the city, where it is not unreasonahly thought that the Government's action regarding the Auckland tramway loans would eliminate further similar questions. The surprise was all the greater as the Auckland issue was complicated, some bonds originally having been sold in New Zealand, while the Southland issues were raised in London under the New Zealand Government's unconditional guarantee. The Stock Exchange has eeased quoting the bonds pending developments, although it is confidently hoped that Southland Board's meeting with Mr. Coates will result in an assurance that the Government intends to pay in sterling, as it is assumed Southland's declaration applies merely to payment hetween the board and the Government. Nevertheless, it is highly desirable, .in the interests of New Zealand eredit, that the position he immediately clarified and steps taken to prevent a repetition- of such incidents. Memhers of the Southland Electric Power Board had an ;all-day sitting on. Wednesday discussing the question of interest payments to the board's London bondholders in all its aspects. They were assisted in their deliberations by a numher of, representative citizens from the country and town. In the evening the chairman of the board, Mr. W. Hinchey, stated that the question of paying all future interest, commeneing with the Septemher payments, in New Zealand currency was determined upon. A deputation from the board is to meet the Minister of Finance, Mr. Coates, in Wellington to-day.