SINKING FUNDS

Northern Advocate, 31 October 1932, Page 8

SINKING FUNDS

PUBLIC BODIES BILL

KEEN CONTROVERSY,

POVERTY BAY ATTITUDE

(Special to “Northern Advocate.”) GISBORNE, Saturday

If the Public Bodies Sinking Funds Bill, which is now before Parliament, is passed, there is a possibility that steps will be taken to petition the King, who lias power to disallow legislation within two years of its being passed. A statement to this effect was made at a meeting of the Poverty Bay Power Board yesterday by tho chairman, in reviewing the controversy between the board, the Public Trustee and the Government regarding its sinking fund.

Explaining the action already taken bv the finance committee, Mr Ball said the board had arranged for all its loans to be met at maturity and a reduction of interest from three- to font per cent would make this impossible, the reduction of the interest being efpiivalent to a loss on redemption value of at least ■fr.O.OOi'l, Acting in the interests of the whole district, the board had sought to withdraw funds from the Public. Trustee and when the latter refused to agree Supreme Court action had been commenced. This was countered by the introduction of the present bill, which, it was contended, was a piece of legislation admittedly drafted by the defendant litigant, who, but for this legislation, would be bound to pay over moneys to the board and whose promise to pay was supposedly guaranteed by the State, which was bringing forward the legislation.

The board’s protests to tho Government, it was declared, had been passed over to the Public Trustee, who was

thus placed in the position of resolving in his own favour the legal questions at issue.

Mr Ball expressed himself as optimistic regarding the final issue of the controversy. 3o expected, lie said, that Parliament cou*ld be relied on to follow the accustomed procedure and to avoid putting through unconstitutional legislation. If the bill wcrfl passed, however, the board would not be without remedy, for there was still available the right to petition the King, who had power to disallow legislation within two years of its being passed. This would practically moan that the Act would come before the British Cabinet, and this body would have to decide whether the measure was unconstitutional.