REMOVING ANOMALIES

Poverty Bay Herald, Volume LIX, Issue 17946, 25 November 1932, Page 8

REMOVING ANOMALIES

EXPENDITURE ADJUSTMENT

(Per Press Association.)

WELLINGTON, last night. In moving the second reading of th.e National Expenditure Adjustment Amendment Bill in the House to-day, the lit. Hon. G. W. Forbes outlined the clauses of the bill, stating that they were designed to clear points raised after the passage of the main Act. ; There had been some doubt as to whether loans on life insurance policies came under the category oi an ordinary mortgage, or whether they should be classed as chattel securities, and thus would be subject to a minimum interest rate of 62 per cent. The bill clearly placed them under the definition of an ordinary mortgage, subject to the 5 per cent, minimum interest rate. The exemption was being lifted from local bodv ground rents, in order to bring them into line with the general policy of reducing fixed charges. There was no reason why local bodies should no be subjected to the same provisions os private institutions and individuals. The bill was read a second time.