BONUS BOND SALES

Press, Volume CIX, Issue 32233, 27 February 1970, Page 1

BONUS BOND SALES

ssm Expected In First Month

(New Zealand Press Association) WELLINGTON, February 26. Sales of about $5 million could be expected in New Zealand in the first month of the Post Office bonus bonds scheme, the Postmaster-General (Mr McCready) said today.

The bonds will go on sale next Thursday, and the first draw will be in July. Mr McCready said that about $l2 million was expected to be invested in the bonds in the first year. These figures compared on a population basis, with those for the British scheme which, when started more than a decade ago, drew tn about $lOO million in the first month and $230 million in the first year. Money invested in the bonds will be reinvested in Government stock. The interest from the stock investment, about 4 per cent, will be distributed as prizes in the monthly draw. The bonds will sell in $1 (denominations, and will not be interest-bearing. But each $1 invested will qualify for a prize. Investors will not lose the money they have paid for bonds, and each bond will be eligible for succeeding draws. To qualify for a draw the bond must have been bought three months earlier. The prizes are: first $lO,OOO, second $5OOO, third $5OO, five prizes of $lOO, 10 of $5O and 350 of $lO. These comprise $20,000, the minimum at stake in any draw. Additional prize money will be offered if investment in the bonds is higher than exipected by the Post Office. I Mr McCready said regular draws would be held monthly (with special draws from time Ito time. I For the efficient operation of the scheme it was necessary to centralise registers of I bonds and bondholders. A

Registry known as the bonus jbonds centre had been set up in Dunedin, where records would be kept, draws made and general administration carried out. In the first year a staff of just over 90 was expected to be employed in the scheme The serial numbers of prizewinning bonds would be published in the Gazette and in newspapers. No information would be given about the names of winners, but the location of major winners would be given to news media. Winners of $lO prizes would be paid by cheque sent direct | from the centre. Mr McCready said. Other prize winners would be invited by letter to state how they wished their prizes to be paid. The signature supplied in their letter of reply would be compared with the one held in the centre to ensure that the prize was being paid to the right person. A number of persons in overseas countries had indicated a wish to buy bonds, the Minister said. The Reserve Bank was prepared to allow remittance of prizes and bond redemption payments overseas, provided the bonds were bought with overseas i funds. i Mr McCready said there was ;no question of bonds’ funds or interest being used to make up any loss of funds for distribution from Golden Kiwi lottery profits should the bonds reduce investment in the lottery. The Minister will be in Dunedin on Thursday to buy the first bond to go on sale.