RELIEF MEASURES

King Country Chronicle, Volume XXV, Issue 3278, 12 March 1931, Page 5

RELIEF MEASURES

FOR HAWKE’S BAY PEOPLE

PROPOSALS OF GOVERNMENT

Important proposals concerning the steps to be taken by the Government to rehabilitate the area in Hawke’s Bay affected by the earthquake and the arrangements to be made to provide finance to that end. were announced by the Prime Minister*, Rt. Hon. G. W. Forbes, in an interview on Tuesday. The proposals of the Government are of a farreaching* nature and they will require legislative sanction. It is proposed to seek this during the special session ,of Parliament. Chief among the proposals outlined by the Prime Minister was that for the provision of a total of £1,500,000 for private and local body needs. Of this £1,250,000 will be devoted to the giving of assistance by way of grants or loans to persons or business firms for the reconstruction of buildings destroyed or damaged by earthquake or fire, or toward the replacement of loss arising from these causes. The remaining £250,000 is to be made available by way of loans to local authorities for the restoration of essential local body services. Considering it inadvisable to raise the money by way of an external loan, the Prime Minister said it was considered equitable that the Reserve Fund held in London by New Zealand should be utilised temporarily. This sum is largely invested in securities of the British Government and it is proposed to realise these to the extent of £1,500,000. In order to reinstate the fund the Government proposes to levy a surtax of Is. 6d. per cent, on the value of all insurable property in the Dominion. The levy will be made on all insurance companies doing business in the Dominion on the basis of insurance effected, and in respect of those who carry their own risks provision will be made for the collection of the tax on the insurable value of property by the Commissioner of Taxes. Local authorities will be exempt from principal and interest for the first five years on the £250,000, after which the loans will be repayable over a period of 30 years at 4 per cent. It is proposed that the proceeds derived from the surtax will be used firstly in recouping the loss of revenue arising from the liquidation of investments of £l, 500,000, and secondly in reinstating the reserve fund. Repayments of principal under the local body loan scheme will be credited to the Reserve Fund.