LOCAL BODY LOANS

New Zealand Herald, Volume LXXIII, Issue 22318, 16 January 1936, Page 10

LOCAL BODY LOANS

APPEAL COURT JUDGMENT FURTHER ACTION NOT DESIRED [by telegraph—owx correspondent] HAMILTON, Wednesday In consequence of the judgment of the Court of Appeal on December 12, 1935, in a test case brought by the Australasian Temperance and General Mutual Life Assurance Society, Limited, against the Borough of Mount Albert, to determine the effect of certain Victorian legislation, passed during the depression, upon advances made by Victorian companies to local bodies in New Zealand, and in which the decision of the Court was that the Mount Albert Borough Council was not entitled to benefit by the legislation, and in particular by an Act reducing rates of interest, the Municipal Association has asked the Central Waikato Power Board if it would agree to contribute to the cost of an appeal to the Privy Council.

The secretary, Mr. H. J. Beeche, said the total New Zealand local body loans affected by the decision amounted to £1,000,000, and that the interest involved since 1931 was £25,000. The Central Waikato Board's loans raised in Australia amounted to £26,000.

The board decided to take no further action. It also decided to ask the Hon. W. Lee Martin, Minister of Agriculture, who was present, to urge the Government to enter into negotiations with the Victorian Government with 11 view to bringing about a uniform bf\sis on which interest should be paid on Australian loans.