INTEREST ON SYDNEY LOANS.

Manawatu Standard, Volume LIII, Issue 252, 21 September 1933, Page 4

INTEREST ON SYDNEY LOANS.

FEILDING’S FAVOURABLE POSITION. Interviewed this morning regarding the effect on Feilding of the decision of the Equity Court of -New South Wales regarding the payment of interest on Sydney loans, the Mavor (Mr C. E. Taylor) stated that Feilding was not in any wav concerned in the matter. At the beginning of the present year, said Mr Taylor, the Feilding Borough Council, a.fter obtaining the benefit of the ruling exchange in Sydney on the interest payment on its loans, entered into negotiations with the A.M.P. Society regarding the domiciling of its £55,000 loans in New Zealand, as regards both principal and interest payments. This was agreed to by the society and the council had its negotiations completed in time to receive the benefit of the 10 per cent, interest reduction by the New Zealand legislation. The terms of the re-domi-ciling of the loans also provided that the council should receive the benefit of any future reduction in interest in New Zealand, and when Parliament, at its session early in the year, made a further reduction in interest rates in New Zealand from 10 to 20 per cent., the council immediately received the benefit of that. The council, as a result of its foresight, Mr Taylor said he was pleased to relate, was thus not. in. any way concerned with the decision of the New South Wales Court, and to-day was enjoying the full benefit of the 20 per cent, reduction in interest brought about in New Zealand. The’ full amount of the council’s loans that.. would have been concerned was £55,645 and on this sum the council had received the benefit of the exchange in Australia prior to it being altered in favour of New Zealand. Between this alteration, however, the council had effected the change in domicile of its loans, but not before it had gained to the extent of some £6OO or £7OO as the result of the then favourable Australian exchange. It would thus be appreciated, said Mr Taylor, that the council had made its decision to effect the change at the right moment, seeing that it had gained the above considerable saving while l paying in Australia, and had brought I about the New Zealand domiciliary i change in time to receive tire full benefit of the 20 per cent, reductions in interest in this country and to be in no way concerned witlr the decision of the Australian Court as published yesterday.