ERROR IN ACT.

Auckland Star, Volume LXIV, Issue 112, 15 May 1933, Page 8

ERROR IN ACT.

INTEREST REDUCTION. HASTILY-DRAWN LEGISLATION POWER BOARD'S DECISION. The Local Authorities Interest Reduction and Loans Conversion Act, 1932-33. contains an error, in that certain requirements under Part 4 of the National Expenditure Adjustment Act, 1932, have not been removed. This is the opinion of the legal advisers to the Waitemata Electric Power Board. In a report to the board this morning reviewing the legal opinion, the manager, Mr. A. Main, said the intention of Parliament was obviously to make all interest coupons under Part 4 of the National Expenditure Adjustment Act subject to 10 per cent stamp duty up to March 31, 1933, only, and as from April 1 coupons were to be subject to a 21) per cent reduction under the Interest Reduction Act. ''The effect of the inapt language in this hastily-drawn legislation," he continued, "is that the liability to pay 10 per cent stamp duty on coupons has not been removed by section 21 of the 1933 Local Authorities Interest Reduction Act, and coupons are still liable to 10 per cent stamp duty in addition to the 20 per cent statutory reduction, holders thereof thus having their revenue reduced by 30 per cent. "Payments due on June 1 should, I consider, be paid in conformity with the intention of Parliament. In my opinion it would never do for the board to take advantage of what is obviously an error in legislation which had to bo hastily drawn. As suggested by the board's solicitors, I would recommend that the board draw the attention of the Treasury Department to the matter, with a view to amending legislation being obtained as early as possible. This legislation would also be validating in respect of any payments of interest in the interim." Mr. S. E. Keuniugs: What would the board's position bo if validating legislation was not passed. The Chairman. Mr. W. R. T. Leigh ton: We will take our chance. The report was adopted.