MILLIONS FOR WORK

Southland Times, Issue 19311, 1 August 1924, Page 5

MILLIONS FOR WORK

BRITAIN’S SPECIAL LOANS AUSTRALIAN PARTICIPATION HUGE SUM AVAILABLE. (By Telegraph—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) MELBOURNE, July 31. Draft agreements for the operation of the new migration proposals have been received by Mr S. M. Bruce (Federal Premier).

It is proposed that Britain should lend the Commonwealth £34,000,000 for land settlement and development work, and the Commonwealth lend money in turn to the States who will administer the expenditure. As the Commonwealth and Britain share the larger part of the interest charges, the States will receive the money at nominal interest.

The Federal Parliament will discuss the proposals before definite action is taken.

It was recently announced that if the agreement were signed, the sum of £34,000,000 would become available for developmental work in the Commonwealth during the next ten years. In its present form the agreement provides for the repayment of half the interest on loans by the British Government for a period of five years, and of one-third of the interest for the following five years. The money will probably be raised at 5 per cent. The special loans are designed for the mutual benefit of the Dominions and of Britain. Roughly, the idea is that money will be made available on the above terms, on condition that the money is spent on expediting public works beyond what would otherwise be possible, and also on condition that the money spent outside the Dominion concerned, as for the purchase of plant and material, shall be spent in Britain.