BURDEN INCREASED

Evening Post, Volume CXVIII, Issue 23, 27 July 1934, Page 10

BURDEN INCREASED

NO IMMEDIATE EFFECT HERE

The Mayor, Mr.:T. C. A. Hislop, discussing the proposal-today, said that there was no doubt that its application would add to the1 burden upon local bodies, but Wellington would not be affect.cd immediately; as the city had no loans maturing in London for some time yet. ; , ■.•;..

"The position, has.been that up till now authority. has been - given to the local, bodies' to.borrow in London tho full amount required to redeem existing loans in London without the necessity of transferring the sinking fund to London," said Mr. Hislop. "And in that way the sinking funds were saved from being reduced through the alteration^ of the exchange rate. Tho sinking funds were thus held in New Zealand as security against the renewal loans, raised in London, and the result Was that the city and other local bodies wero in a position to take advantage of any fall that might take place in the exchange rate when the timo came to repay the new loans. ..'

'' The position will be, if the proposal is'carried on the third reading and passedinto law, tha^t the above benefits will be taken away from local bodies having loans .maturing in London, and tho'burden uponiratepayers will be increased, by 25 per cent! of the amount of,sinking fund held,* a position which they cannot .view with equanimity.". Wellington, however, had no London loans .maturing in the very near future, added Mr. Hislop, but the effect would be felt in due course if the exchange rate remained unaltered.' ; ":'