HAWKE'S BAY EARTHQUAKE

Otago Daily Times, Issue 22352, 28 August 1934, Page 9

HAWKE'S BAY EARTHQUAKE

REHABILITATION LOANS PAYMENT OF' INTEREST. (From Our Parliamentary Reporter.) WELLINGTON, August 27. The impossibility of the Government agreeing to write off all interest on loans granted for rehabilitation purposes as a result of the Hawke’s Bay earthquake is emphasised in a statement made this evening by the Minister of Finance (Mr J. G. Coates). The Minister explained that the Government had a definite duty to the taxpayers, who would have to stand the cost of any remission of interest. “ From time to time I have received requests on behalf of the citizens of Napier for a remission of interest on loans granted under the Hawke’s Bay Earthquake Act, 1931,” said Mr Coates. “ It will be remembered that I have previously stated that those who could keep up their interest payments would be expected to do so. It should be realised that the reserve fund which was used to assist the people of Hawke’s Bay was invested in London in revenue-earning securities, and the income derived from these securities was and still is an important part of the Budget revenue. The Government has a definite duty to the taxpayer, who would have to stand the cost of the remission of interest. Hence there is no possibility of the Government’s agreeing to write off all interest in respect of earthquake loans. I am keeping the position under review and would say that the Government is prepared to consider individual cases on their merits. Where a measure of leniency is called for the Government will not take drastic steps to enfocre the payments of accruing instalments. The Treasury, which is administering the loans under the Hawke’s Bay Earthquake Act, 1931, has received clear instructions as to the policy to be adopted in these individual cases.”