SINKING FUNDS
REMISSION TO LONDON
"STABILISING EXCHANGE"
LOCAL BODY MONEYS
Tho reason local bodies are now to be. required to remit .to London sinking funds for the redemption of oversea maturing loans which they wero allowed to retain iri New Zealand under the emergency legislation of 1932, was outlined 'by the Minister of Finance (the Bt. Hon. J. G. Coatcs) to the House of Eepresentatives last night. The Minister said that the enactment had been, made at.a time when the exehango rate had risen to 10 per cent, and was largely based on the assumption that it would bo a temporary phase only. , In view of later developments, however, and the present position and outlook of tho exchange' rate, it was not considered that the practice of holding back' moneys that should be remitted to England should be allowed to continue. In other words, tho intention was to stabilise the exchange position, and local bodies, in common with the public generally, must carry out their business-at tho current rate in the normal manner. y It was not in the interest of New Zealand, and unsound financially, to postpone the remittance of moneys indefinitely. When the Bill was in Committee the clause was retained by .34 votes to 28.
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https://paperspast.natlib.govt.nz/newspapers/EP19340727.2.87
Bibliographic details
Evening Post, Volume CXVIII, Issue 23, 27 July 1934, Page 10
Word Count
208SINKING FUNDS Evening Post, Volume CXVIII, Issue 23, 27 July 1934, Page 10
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