OVERSEAS INTEREST

Dominion, Volume 26, Issue 112, 4 February 1933, Page 12

OVERSEAS INTEREST

Local Bodies’ Burden The statement that there could be no general arrangement whereby the Government would agree to assist local bodies whose overseas debt charges would increase as a result of the increase in the exchange rates, was made by the Minister of Finance, Kt. Hon. J. G. Coates, in reply to questions during the debate on the Banks Indemnity (Exchange) Bill in the House of Representatives yesterday. . Replying to several members, the Prime Minister, lit. Hon. G. W. Forbes, said , the increased purchasing power of the farming community would be spread throughout the whole country, and this must in the long run afford assistance to local bodies’ budgets. Mr. Coates said it had been submitted that the Crown should accept the responsibility for the increased interest that would have to be paid on local bodies’ debts domiciled overseas, but this could not be done. He did not beliaye these additional responsibilities would outweigh the benefits that must inevitably come to local bodies. Other measures which had been submitted to Parliament might give relief 'to local bodies. If proposals were submitted whereby by a small rearrange-i went could in individual eases assist local bodies to bridge the gap, they would receive favourable consideration, but there could be no general arrangement.