BIG LOAN PROPOSED

Taranaki Daily News, 24 June 1935, Page 5

BIG LOAN PROPOSED

LONDON TRAFFIC AIDS

TUBE RAILWAY BUILDING

£35,000,000 TO BE RAISED

GOVERNMENT GUARANTEE

(British Official Wireless.) Rec. 5.5 p.m. Rugby, June 21. Mr. Neville Chamberlain in the House of Commons to-day moved a financial resolution in connection with the £35,000,000 scheme to improve the London traffic services. The scheme involves the building of about 12 miles of new, tube railways, electrification of 44 miles of suburban railways, doubling and electrification of 12y a miles of further suburban railways and the substitution of trolley lines for tramcars on 148 route miles. Mr. Chamberlain said the Government would introduce a Bill to provide that the Treasury would guarantee the securities issued by the company to be formed to raise a sum not exceeding £40,000,000. The guaranteed loans would be repayable at par in not less than 15 years and not more than 25 years. The rate of interest would be decided upon later.

Mr. Chamberlain emphasised that the fact that they had been able to bring to a satisfactory conclusion arrangements for this great enterprise afforded another example of the benefits of the Government’s policy of cheap money. For the Labour Opposition Mr. G. Lansbury intimated support of the scheme.