LOCAL BODY LOANS.

Manawatu Standard, Volume LIV, Issue 281, 26 October 1934, Page 6

LOCAL BODY LOANS.

FORMER MINISTER CRITICISES BILL. Per Press Association. WELLINGTON, Oct. 26. In the House of Representatives early this morning, urgency was accorded the second reading of the Local Authorities Interest Reduction and Loans Conversion Amendment Bill, which was moved by the Minister of Finance (Rt. Hon. J. G. Coates). _ Mr W. Dcwnie Stewart characterised the cancellation of the optional domicile of securities as 'another breach of contract on the part of the Government. He thought it would have a prejudicial effect on the Dominion’s future finance. He did not think it morally right, fair or reasonable to do it, and he recorded his protest against it. Messrs A. E. Jull and A. J. Stallworthy protested against the departure from the long-established practice of having a poll of taxpayers taken before a loan was raised. They considered county councils should not be subject to the Local Bodies Loans Board.

Mr R. A.- Wright supported Mr Downie Stewart and said the cancellation of optional domicile would drive many away from local bodies. Mr F. Jones supported the change, but thought the cancellation should have been effected two or three years ago. Mr W. Nash said it was not right that the people of New Zealand should be compelled to pay large sums to other persons who had changed the domicile of their loans to gain the benefit of the exchange. Mr W. A. Veitch supported Messrs Downie Stewart and Wright as regards the cancellation of optional domicile, and said it was a breach of agreement. Messrs W. E. Barnard and P. Fraser attacked Mr Veitch for expressing such views and quoted Hansard to show how Mr Veitch had voted on other matters which they claimed were breaches of contracts. Mr Coates thought the majority of councils would welcome the proposals in the Bill. Replying to Mr Downie Stewart, he said that from to-day interest on loans domiciled in London would be paid in sterling and those domiciled in New Zealand in New Zealand currency. He thought it would be unfair to give persons a continuous right to change their domicile. No injustice or hardship would be suffered by anybody as a result of the provision in the Bill. The second reading was carried.