EXCHANGE COSTS

Southland Times, Issue 23332, 16 October 1937, Page 6

EXCHANGE COSTS

OVERSEAS DEBT OF LOCAL BODIES LIQUIDATION BY RESERVE BANK SUGGESTED (From Our Parliamentary Reporter) WELLINGTON, October 15. A suggestion that arrangements should be made through the Reserve Bank to liquidate the whole of the overseas indebtedness of the local bodies in New Zealand was made by Mr C. H. Chapman (Lab., Wellington North) during the financial debate in the House of Representatives today. Mr Chapman said that enormous expenditure was incurred by local bodies through borrowing overseas. Exchange added to the burden and, indeed, was one of the main reasons why rates were so high. Exchange _ alone this year would cost the Wellington City Council £23,000. If the whole of the overseas indebtedness of the local bodies was liquidated the saving to New Zealand would amount to at least £1,000,000. The local bodies would then be in a position to make a considerable reduction in rates, which were a considerable burden on the community.

Opposition members: Hear! Hear! “This is a question in which I think the Opposition and the Government can unite with mutual advantage,” said Mr Chapman. “There is no reason in the wide world why this saving of £1,000,000 to the citizens of New Zealand should not be made.” Mr A. S. Richards (Lab., Roskill): The Opposition put the exchange on. “We will let bygones be bygones,” said Mr Chapman. “Now that they realize the damage they have done and the hardship imposed upon their friends and our friends, let us all unite and agree upon some procedure which will make the position easier for everybody.” ______