SINKING FUND INTEREST

Taranaki Daily News, 9 November 1932, Page 8

SINKING FUND INTEREST

POSITION OF EGMONT COUNCIL. The Egmont County Council yesterday discussed the Local Authorities Sinking Fund Bill, the main object of which was to render null and void any resolutions by local bodies purporting to remove the Public Trustee as commissioner of any sinking fund created for the repayment of loans. Cr. J. 8. Tosland said he was paying the Public Trustee 6 per cent, and could not secure a reduction. There was a wide difference between that and the 4 per cent, the Public .Trustee was paying. The chairman (Cr. W. C. Green) P o^ ed out that the Public Trustee could give a reduction of 10 per cent. i on loan money excepting where that money had been advanced from any superannuation fund. Some of the council’s loan money had been advanced for’that fund. Cr. Willcox considered the council should not embarrass the Public Trustee by pressing for any alteration in the Act, which was a safeguarding measIf the Public Trustee had to . pay . 5 per cent, for the money he received in sinking fund, the chairman said, how could they expect the interest, to be reduced on the money the Public Trustee lent? If the Public Trustee paid only 4 per cent, the rate of interest should be reduced. Unfortunately the Egmont County Council had borrowed its money when money was dear. The council should receive 1 per cent, reduction in interest and if the position went on much longer it would have to receive another 1 per cent. No doubt the Government had taken its present stand in order to protect the Public Trustee and he did not think the council should take any stand in the matter. • Cr. Gibson took exception to the at-

titude-of the Public Trustee .in not reducing interest on money loaned from the superannuation fund. The Government should not have allowed the superannuation fund to get into the position that it was as it was prejudicial to the credit of the whole Dominion.