LOCAL BODIES LOANS

Stratford Evening Post, Volume II, Issue 242, 13 May 1933, Page 6

LOCAL BODIES LOANS

Statement by Finance Minifter r:r;> ~> r*-\ fffeCaw,'g conversions t'ICJ: Assoc .L.'. --Copyright V , May 12. The Minister c. ithe Rt. Hon. G. v_. 2o/ s in ui interview to-day drew atU-i.dn to tV need for local bodier to take adv mage of the Local Authoriti-.., Jntcro..; Induction and Loans Conversion Act. A circular had been dispatchcu io -11 local bodies outlining points to bo observed concerning loan conversion 3. The Local Government Loans Board had considered the recent legislation particularly in reference to flic stabilisation of interest rates. The board noted with regret that some local authorities were apparently content to rely on the provisions of Part 1 of the Act, under which they obtained the immediate benefit of a reduction of 20 per cent, in interest charges. Mr. Coates emphasised the value of effecting conversions as early as possible. The object of the recent legislation had been—in addition to giving relief to local bodies—to brin 6 about a rjeneral lowering of the rate of interest, thereby substantially aiding the movement for a general reduction of costs. .Ratepayers were entitled to ask that advantage be taken of this legislation. Failure to do so might result in the flotation of renewal loans at higher rates than necessary. Mr. Coates reviewed the Government's efforts to bring about a lower level of interest rates gener-ally. He asked members o? local governing bodies to do their part in furthering the movement.