INTEREST CUT.

Auckland Star, Volume LXII, Issue 70, 24 March 1931, Page 4

INTEREST CUT.

CONTENTIOUS MEASURE IN

N.S.W.

THREE PER CENT LIMIT

RUSHED THROUGH PARLIAMENT

(From Our Own Correspondent.) SYDNEY, March 20

Another bombshell in the political world of Australia this week was the introduction into the New South Wales Legislative Assembly of the Interest Reduction Bill by the New South Wales Labour Government. The bill has been discussed for weeks by all sections of the community, and many speculations were made as to the method by which the Government would carry out the scheme. Speculations were set at rest, however, this week, when the bill was tabled m the Legislative Assembly. It has produced a etorm of protest from all quarters, but despite this the Government refused to allow any discussion of the many contentious clauses m the bill, and rushed the proceedings through m one sitting of the House. ~ The measure provides that the Act snail not apply to agreements whereby any person is bound to pay interest outside New South Wales to anyone other than a resident of New South Wales, or to any obligation or agreement entered into with the Crown or the State Savings Bank A clause in the bill stipulates that "the Crown" does not include the Metropolitan and Hunter Water Boards, Transport Trusts, Irrigation Commission, Main Roads Board, Meat Industries Board, Railway Commissioners, Harbour Trust Commissioners or the Government Insurance Office. Clause 4 fixes 3 per cent as the highest rate of interest payable on any security of th© Government of New South Wales. Clauee 5 sets out that any agreement for the payment- of interest set a rate higher than that prescribed in the bill shall be void and unenforcible. Although the Act will apply to agreements made before its commencement, it will not apply to interest which may have accrued before the commencement of the Act. The section does not extend to any obligation whereby the Crown or the Government Savings Bank is bound to pay interest on moneys deposited with either of them. Private Borrowings. The rate upon any loan for a fixed term upon the security of any property ie to be as follows: — First mortgage, 5 per cent. Second, or any subsequent mortgage, 6 per cent. Verdict or judgement debt, 5 per cent. The purchase price of goods, which may be included in instalments upon hirepurchase, 5 per cent. The purchase price of land purchased by instalments, 5 per cent. Deposit Rates. The .rate for money held upon deposit at short call for ariy period lees than three months is fixed at Vh per cent. The rates on fixed deposits are to be:For three months, 2 per cent. Six months, 2% per cent. Twelve months and less than two years, 2% per cent. Two years or any greater period, 3 per cent. The rate in any other case not above ep*r*£ed, 5 per cent.