N.Z. LOANS

Grey River Argus, 12 October 1936, Page 8

N.Z. LOANS

HON. M. FAGAN’S STATEMENT.

WELLINGTON. October 9. A statement, about the manner in which the Government proposed to raise money for housing and for other purposes was made by the leader ot. the Legislative Council, Hon. AL Fagan The Government did not intend to raise the money abroad, and would do its utmost io avoid doing so. The Government was of the opinion that internal borrowing was much preferable, and held the view that the country to-day would have been in a much better position if that policy had been followed. If public, departments had surplus funds and those were borrowed, a rate of interest would be paid which would safeguard these moneys, which were the savings of the people. Air. Fagan said the actual method of borrowing would rest with the Alinister for Finance, and he (Air Fagan) had no desire, to anticipate the Alinister’s intentions. As the money was required from time to time, it would bo borrowed on the best, possible terms, at. the lowest rate of interest possible. If money were borrowed from the post office, the State. Fire Department, or Ihe Prblic 'Trustee, a rate, of interest, would be paid that would snl'eguard the people’s savings.

Air. Fagan said he did not, wish to anticipate, the intentions of the Al-iu-ister for Finance, regarding £5,(100,(100 for bousing', but he could say that the matter had been gone into with the Reserve Bank, and arrangements had been made for £5,000,000 to be available from the Reserve Bank. 'Pho arrangements had been almost, completed; but the Alinister was now considering the rates of interest of longterms and short-term loans. 'Pho Reserve Bank would find the £5,000,000 for housing, and interest would be paid. Air. Fagan said arrangements had been made to provide for the transfer of the Parliament Buildings stall and Bellamy’s staff, and to make a shift during the recess. Before the end of 1937 the building of the remainingl portion of Parliament House would be well on the way, and the plans included a library. "This is not a bad record for a Government that has been in existence for only 10 months,’’ he said. "We are almost ready to start work."