LOCAL BODY LOANS

Hawke's Bay Tribune, Volume XXIV, Issue 80, 16 March 1934, Page 6

LOCAL BODY LOANS

Relief from Burden Sought PROPOSAL TO GOVERNMENT (By Teleirrapb—Pree« Association., WELLINGTON, March 15. The Municipal Conference adopted the two following resolutions regarding local body loans: — “That the Government be asked to take up any loans that local bodies may in future raise in London, and that the Government be approached to see if it can effect the conversion in London of local body debentures by the issue by the Government of debentures in lieu of existing loans and the taking by it of new debentures from local bodies to cover the liability so undertaken. ’ ’ “This conference is of the opinion that the burden of oversea indebtedness as affecting local bodies is greater than the economic conditions warrant and an equitable adjustment of interest payments, having regard to the Dominion’s diminished income, is imperative,l particularly in the case of the larger local bodies. The payment of interest in London represents a considerable proportion of local body commitments. The conference is fully cognisant of the gravity of this proposal, but circumstances warrant the Government in entering into negotiations with oversea lenders with a view to obtaining relief”