PREMIUM BONDS

New Zealand Herald, Volume LXXI, Issue 21716, 3 February 1934, Page 12

PREMIUM BONDS

DESIRE AT GISBORNE CHAMBER AND GOVERNMENT [by TELEGRArH—PRESS ASSOCIATION] GISBORNE. Friday Difficulty is found by the Gisborne Chamber of Commerce in reconciling the Government's refusal to consider a premium bond scheme with its attitude toward art unions and overseas sweepstakes. Further representations on the subject have been made by the chamber to the Prime Minister. In a letter to Mr. Forbes the chamber states that in the not far distant future a policy to put forward public works will have to be inaugurated, and the money necessary to undertake these works will have to be raised within the Dominion. The chamber submits that tho money could easily bo obtained if the Government would allow a system of premium bonds to b© established. "According to your former pronouncement," states the letter, "such a proposal is illegal, in terms of ( ,he Gaming Act, and, further, the raising of funds by such means is contrary to the principles of sound public finance. In spite of this illegality, hundreds of thousands of pounds are leaving New Zealand annually for lotteries overseas. The proposal put before'you some time ago is a lottery only in so far as the portion on interest is concerned, tho principal in all cases being returned to th«» investor. "If your Government is so strongly against tho raising of money as suggested, tho chamber would like to know how that policy is reconciled with tho fact that Cabinet approves the allocations to various local bodies and organisations ,in respect of art unions."