LOCAL BODY FINANCE

Otago Daily Times, Issue 21952, 13 May 1933, Page 14

LOCAL BODY FINANCE

CONVERSION OF LOANS MINISTER ISSUES APPEAL (Per United Press Association.) WELLINGTON. May 12. The Minister of Finance (Mr J. G. Coates), in an interview to-day, drew attention to the need for local bodies to take advantage of the Local Authorities Interest Reduction Loans Conversion Act. Mr Coates said that a circular had been despatched to all local bodies outlining the points to be observed concerning loan conversions. The Local Government Loans Board had considered the recent legislation, particularly with reference to the stabilisation of interest rates. The board noted with regret that some local authorities were apparently content to rely on the provisions of part 1 of the Act referred to, under which they could obtain the immediatte benefit of a reduction of 20 per cent, in interest charges. The Minister emphasised the value of effecting conversions as early as possible. The object of the - recent legislation had been, in addition to giving relief to local bodies, to bring about a ■general lowering of the rate of interest-, thus substantially aiding the movement for a general reduction in costs. Ratepayers were entitled to ask that advantage should be taken of this legislation, as failure to do so might result in the flotation of renewal loans at higher rates than need be. Reviewing the Government’s efforts to bring about a lower level of interest rates generally, Mr Coates asked members of local governing bodies to do their part in furthering the movement.