LANG PLAN

Grey River Argus, 28 April 1932, Page 3

LANG PLAN

FOR N.Z. LOCAL BODIES. AUCKLAND PROPOSAL. AUCKLAND, April 27. Thc opinion that an extension of time for payment of local bodies’ overseas interest obligations, should be sought, was expressed to-day, in an interview, by Air J. A. C. Allum, Chairman of thc Auckland Transport Board He said that reductions in local body expenditure, so far, had been achieved by wage and salary reductions, retrenchment and reductions in the purchases of stores. This meant that there had been less work, and consequently less wages paid to smaller staffs. The economies so far, generally speaking, had been at the expense of the worker, and the time had now arrived to decide whether the economies should continue in that one direction, or whether these should be applied to capital charges too. He had no hesitation in saying that to continue to reduce wages and dismiss workers, as the only remedy, would not only be inhuman, but would spell ultimate ruin for the country. The Government’s interest reduction legislation applied only to interest payable within New Zealand. Many local bodies had raised a large proportion of their loans in England. The British lender had found it necessary to make concessions in connection with loans to foreign countries, and surely it was reasonable to expect that an approach from the Dominion for some relief during the present crisis would be favourably received and responded to. “No doubt, it shows a fine spirit to say that we will pay our debts,” said Air Allum, “and I reiterate that our debts must be paid, but after all we must see to it, we do not first pay our debts and then find ourselves in a position that we have insufficient money to run the country. What I have in mind and I want to make it clear, is only an extension of time in which to meet our liabilities, and I make no suggestion of not meeting them. Representations should be made from the proper quarter to British investors with this end in view. ’ ’