NEW PLYMOUTH LOAN

Waikato Times, Volume 124, Issue 20726, 9 February 1939, Page 4

NEW PLYMOUTH LOAN

RATE OF INTEREST HON. W. NASH’S STATEMENT (By Telegraph.—Press Association) WELLINGTON, Wednesday ’ The Hon. W. Nash, Minister of Finance, stated to-day that the published statement regarding the proposed loan for the New Plymouth Harbour Board was completely inaccurate. The Local Government Loans Board had not approved the raising of any loans in New Zealand at a higher rate than 3£ per cent. — the rate determined by the Government. The Loans Board, however, had given consent to the raising of a loan overseas to enable the Harbour Board to meet its commitments in regard to a loan maturing In London on May 1. The rate of interest was low compared with the rate ruling for like securities in London, and the Loans Board consented to the proposed terms only on the special representations of the Harbour Board. Responsibility Not Aooepted “Arrangements in connection with the exchange control provide for special consideration for local authorities who have loans maturing during the year,” said Mr Nash; “but if such local authority decides to accept the ’ offer of finance to repay maturing loans the Government cannot accept responsibility for the interest rate.” ; The Harbour Board’s transaction | would not interfere with the policy of the Government, which proposed to take steps necessary to ensure that funds required in the Dominion by ' local authorities were made available I at rates in accordance with its policy, hut it had no control over interest rates on money borrowed overseas.