NAPIER EARTHQUAKE

Evening Post, Volume CXXII, Issue 132, 1 December 1936, Page 16

NAPIER EARTHQUAKE

LOANS TO SUFFERERS

NO FURTHER INTEREST

(By i'elegraph—i'ress Association.)

HASTINGS, November 30.

Loans made by the Government to individuals and companies who suffered losses in the earthquake of 1931 are to be free of interest for the re- j mainder of the unexpired term. An announcement to this effect was made by the Hon. W. E. Barnard, M.P., tonight to a meeting of borrowers. This action by the Government is the culmination of representations made by Mr. Barnard and the Borrowers' Association for several years, and the announcement was greeted with genuine enthusiasm. A motion was adopted expressing appreciation of the Government's action and of the work done by Messrs. Barnard, Cullen, and Christie, and other Hawke's Bay members. The decision of the Government was conveyed by the following letter to Mr. Barnard from the Hon. W. Nash, Minister of Finance: "I am pleased to advise you that the loans made *o individuals under the provisions of the Hawke's Bay Earthquake Act, 1931. shall be free of interest for the remainder of the unexpired term of such loans. Repayment of the principal will, however, continue on the existing basis until September 1, 1938, when the balance of the loan then outstanding should be repaid by equal quarterly or half-yearly instalments within the existing term of the advance. Past transactions are not to be reopened and any interest accrued to August 31, 1935, and still unpaid, will remain due,' leaving any case of hardship to be dealt with on its jnerits by the Minister of Finance. The right is reserved to charge interest on overdue instalments if necessary. All existing unused loan authorities which are not in process of being taken up or have not been specially kept open for a defined period shall be cancelled in the meantime, and such authorities can be taken up only after further investigation and subject to the special approval of the Minister of Finance." j