INTEREST DUE IN N.S.W.

Press, Volume LXIX, Issue 20989, 18 October 1933, Page 8

INTEREST DUE IN N.S.W.

PAYMENTS BY LOCAL BODIES POSITION STILL UNCERTAIN The Christchurch Drainage Board is one of the local bodies of the Dominion affected by the recent decision of the Equity Court of New South Wales that the interest reduction legislation of that state does not relieve borrowers in New Zealand from paying full interest on moneys raised in New South Wales. The question came before the board at its meeting last night in the report of finance committee, which had sought direction from the Controller and Auditor-General as to what course the board should pursue in view of the judgment of the Equity Court. If that judgment is to be regarded the board will have to find about £I6OO to make up interest short paid. Fortunately the possibility of having to do so had been foreseen and provision was made on the estimates accordingly.

Auditor-General's Letter. The finance committee reported that the secretary (Mr C. F. Champion) had written to the AuditorGeneral and had asked, in view of the recent argument, what action was to be taken respecting the payment by the board of interest in New South Wales. The following reply had been received: —

"It has been reported in the local newspapers that there was a tacit agreement among the parties concerned that whatever the decision of the Sydney Equity Court might be, a final decision should be sought from the Privy Council. If the intention of the parties is correctly stated, the Audit Office is of the opinion that your board should await the result of the further action before paying interest in full in New South Wales, but if no further proceedings are to be taken the local authorities concerned are required to act in accordance with the decision of the Equity Court and pay interest in New South Wales without deduction of the 22J per cent. If the Audit Office receives definite advice that it is the intention of the local bodies to abandon any further proceedings, I shall advise you of that fact." "Extraordinary Information." The chairman of the committee (Mr E. H. S. Hamilton), in moving the adoption of the report, said that it contained information, but it was rather extraordinary information. It was extraordinary that the Controller and Auditor-General should base his actions on a report in "the local newspapers" regarding what was to follow upon the judgment of the New South Wales Equity Court; but the committee had not been able to get anything more definite. It seemed extraordinary that an officer, such as the Controller and AuditorGeneral, should base his actions on some report in a newspaper, or on supposition that a case was going to the Privy Council. Until the board obtained Lie decision of the Controller and Auditor-General it could not take any further action in the matter. The report w T as received.