EARTHQUAKE LOANS

Poverty Bay Herald, Volume LXII, Issue 18879, 3 December 1935, Page 5

EARTHQUAKE LOANS

NAPIER BOROUGH COUNCIL TO BE FREED OF BIG DEBT MR. SAVAGE'S PROMISE Now that the Labor Party is in power, borrowers of private earthquake loans have an assurance that all such amounts will be wholly free of interest. and that the Napier Borough Council will be free of its present liability to repay the £101.003 owing lo the Government. This assurance was given to Mr. W. F. Barnard, M.P.. for Napier. in a letter dated October 25, by the loader of the parly, Mr. M. J. Savage. Mr. Savage's letter was as follows: "I have no hesitation in saying thill, the policy of the Labor Government will be to provide a national system of insurance against earthquake, and in the meantime to help to the utmost Unpeople of Napier and district who have been the. unfortunate victims of the disaster to Vln'cli you refer. In view of the circumstances, I am definitely of the opinion thai a Labor Government could not do less than to make (1) nil rehabilitation loans to private persons wholly free of interest, and (2) free the Napier Borough Council from its pre sent liability to repay £IOI.OOO owing to the Government, in respect of the loan made to the council for the purpose of restoring public services. Any other method of helping those who may be unfortunate enough to suffer as in the case of the llawke's Bay victims, very often places a burden on those who are least able to bear it.

"The mallei' of earthquake insurance, which is the only equitable method of, meeting future calamities of this nature and which you were good enough to take up on our bfhall by introducing a Bill to Parliament, will again be taken up at Die earliest opportunity."

"The position regarding interest on earthquake loans and the council's liability In pay that CIOI.GCO is perfectly clear so far'as the Labor Party is concerned,'' said Mr. Barnard. "This letter from Mr. Savage is our warrant which 1 rely upon and which you may rely upon."