RELIEF FROM WAR DEBTS

Taranaki Daily News, 23 November 1932, Page 6

RELIEF FROM WAR DEBTS

BENEFIT TO NEW ZEALAND. POSITION EXPLAINED IN HOUSE. By Telegraph.—Press Association. Wellington, Last Night. Mr. H. M. Rushworth (Country, Bay of islands) asked in the House of Representatives to-day if it was correct that Britain had agreed to suspend for another year the payments due from New Zealand on the funded war debt, and whether the sum involved for the current year was £825,000. He further asked how would the bondholders be affected in the event of the report being correct.

The Rt. Hon. G. W. Forbes drew attention to the announcement in the Bud* get that Britain had consented to postpone for another year all payments due on New Zealand’s funded war debt and certain other debts due to the British Government, and that the relief to this year’s Budget was £825,000, in addition to which a saving of £47,000 would accrue to the State Advances Office.

“The funded debt is an arrangement made between the Imperial Government and the New Zealand Government in respect to moneys raised by the Imperial Government during the war period and lent to the New Zealand Government,” added Mr. Forbes. “It to no particular holders of Imperial Government securities and therefore the lenders are not affected, aS their interest will continue to be paid by the Imperial Government.”