CONVERTING N.Z. LOANS

Poverty Bay Herald, Volume LIX, Issue 17956, 7 December 1932, Page 7

CONVERTING N.Z. LOANS

NO PRESENT OPPORTUNITY STATEMENT BY MINISTER (Parliamentary Reporter.) WELLINGTON, this day. When the New Zealand Loans Bill, a consolidation measure, was introduced by Governor’s Alessage in the House, the Minister of Finance was invited to explain what progress he had made m regard to loan conversion operations when he visited London. Mr. P. Fraser (Lab., Wellington Central) suggested that there was a good deal of anxiety on that subject. The Hon. W. Downie Stewart replied that there were no New Zealand loans due either here or in London, though there was one due in New Zealand in January and one in London in 1934, of £5,0C0,C00, which the Dominion had the option to convert now, and this matter was discussed in London. “But there were other applicants who had precedence,” continued Air. Stewart, “their case being more urgent. But the matter is under consideration, and that is the only loan in sight.” As for the legislation, the Alinister explained that in addition to consolidating the law, it contained a few -amendments which will simplify the procedure in connection with loans and avoid heavy expense in printing loan authorities.

Tho bill, when circulated, bore out this explanation, and there was ono important new clause which will empower the Alinister of Finance when converting existing securities to pay to holders such premium as may be found necessary to effect the conversion. This charge will be made against the loan expenses. Power is also given the Alinister of Finance, in his absolute discretion, at the request of a holder of securities, to change the place for payment of principal or interest. Any sue!) action already taken by the Minister is to be validated.

The official explanation states that any omissions and alterations in consolidating clauses will not in any way prejudice the holders of existing securities, or of securities hereafter issued by the Government.