N.Z.’S WAR DEBT

Poverty Bay Herald, Volume LIX, Issue 17944, 23 November 1932, Page 3

N.Z.’S WAR DEBT

BRITISH GENEROSITY ANOTHER YEAR’S RESPITE :< i.’ fiii; .' .. KJ v't a> * • i (Per Press Association.) WELLINGTON, last night. In the House of Representatives today, Mr 11. M. Rushworth (C.R., Bay of Islands)' asked if it was correct that, Britain had agreed to suspend for another year the payments due from New Zealand on the funded war debt, and whether the sum involved for the current year was £825,000. He further asked how ■would bondholders bo affected in the event of the report being correct. The Rt. Hon. G. W. T’orbcs drew attention to the announcement in the Budget that Britain had consented to postpone for another year all payments duo on New Zealand’s funded war debt, and certain other debts due to the British Government, and that the relief to this year’s Budget was £825,000, in addition to which a saving of £47,000 would accrue to the State Advances Office.

He added: “The funded debt is an arrangement made between the Imperial Government and the New Zealand Government in respect of moneys raised by the Imperial Government during the ivinr period, and lent to tho New Zealand Government. It relates to no particular holders of Imperial Government securities and, therefore, lenders are not affected, as tlieir 'interest will eo'ntiiVue'To be paid by the Imperial Government.”