INTEREST REDUCTION

New Zealand Herald, Volume LXVIII, Issue 20990, 29 September 1931, Page 10

INTEREST REDUCTION

MR. LANG'S NEW BILL. CUT/ OF 22 J PER CENT. The details of the New South Wales Interest Reduction Bill were disclosed by the Premier, Mr. Lang, to the Labour caucus recently. Tl?3 bill,/ provides that the interest ebon Id be reduced by per cen 4 in regard to all obligations to pay interest. These include mortgages, hire-purchase agreements, preference shares, bank overdrafts and deposits, . 'Mr. explained that the measure Was one of those arising out of the Premiers' Conference rehabilitation plan. Anybody who paid interest under tho bill would pay/ 4s 6d in the pound less. The reductions would take place arbitrarily by Act of Parliament. The measure provided that the reductions should operate from October 1. The mortgagee would be given the right to approach the Court ■within three months if he desired a modification of the reduction of interest or desired to he excluded from the operation of the bill. The measure provides that the mortgagee can only apply to the Court on two grounds, viz. (1) If the interest has already been reduced; (2) if the rate was fixed subsequent to March 1 last, and at such a rate by reason of the anticipation of a general reduction in the interest rate b\ legislative action. Further, that it was fixed at a lower rate than would have otherwise been provided. Where the interest payable does not exceed £IOOO a year the application inusl bo made to a Court of Petty Sessions before a stipendiary magistrate or police magistrate. Where the annua] interest exceeds £IOOO an application must be made to a Judge of the Supreme Court. ..Mr. Lang stated that the bill would apply practically to all fixed money claims. Legislation would be introduced to forestall the possibility of loans or over.drafts being called up to escape the reduced interest rate. = A biil to amend the Moratorium Act in j the direction indicated would be intr/xluccd iri conjunction with the Interest Reduction Bill. It would provide that in regard to bank overdrafts the interest reduction would be retrospective to September 1 last.