LOTTERY BOND SCHEME

Press, Volume XCVII, Issue 28529, 7 March 1958, Page 6

LOTTERY BOND SCHEME

Local Body Support ; T|ie institution of a premium* saving bond scheme similar to that in operation in England fol the benefit of local body capital works development was decisive ly approved by the Municipal As* sociation’s conference yesterday. The scheme is being considered by the Minister of Finance (Mr A. H. Nordmeyer). “This is designed not to give additional revenue to local bodies but to assist them to obtain money for capital development,” said Mt A. D. Thomson (Mount Roskill), moving the remit. Tens of millions of pounds had been raised in England for local body purposes.

The scheme was that the public subscribed and instead of them receiving interest, the interest was pooled at 4 per cent, per annum, and made available by ballot as prize money, said Mr Thomson. The bondholder! money was safe and intact Ini broad way, the premium savirig bond scheme followed the building societies’ movement in New Zealand.

“If the Government does not want to take this on for itself- 1, and perhaps it does not need to—it should not prevent local bodiet from raising the money,” said Mr Thomson. Many local bodies, especially in the Auckland area, were always in difficulty in getting big funds, and it would be a help to have a larger flow of money. ,j

New Zealand had to find some new method to get over its finaifcial difficulties, said a delegate, s The voting in favour of the remit was 86 to 45. >1