Government Insurance Investments.

Thames Star, Volume XVI, Issue 5110, 3 June 1885, Page 2

Government Insurance Investments.

(Pun Pbess Association.)

Wellington, This day.

The Treasury has 'permitted the following letter, from the Colonial Treasurer to tho Chairman of the Finance Commissioner of the Government Insurance Association, to be published, on account of its general interest :—" I have the honor to state that I think it is desirable the Association should come to an agreement with the Government as to the nature j ofithe'investment'of .the funds of the Asso- J ciation. Iv consequence of its guarantee, ! Government is largely interested in the nature of the Associations investments, Btill I recognise that it is undesirable that | Government should interfere with the Board's investment beyond the measure required for Government's own protection, I am of opinion that requisite -security on one side, and freedom on the ol her, may be attained by prescribing the nature of investments and the minimum of Goyorn- \ inenfc securities. Such seems to have i been the intention of the Act, judging ■ from Clause 74, which gives the Governor in-Council power to declare what are to be deemed proper securities before such power is exercised. I should like to agree with the Board as to its being exercised in a manner that will be acceptable. My proposal is that the Board shall be limited to four classes of investmentsr^(l) loans on policies; (2) purchase of debentures bonds, obligations, or inscribed stock, secured on the consolidated revenue of New Zealand, which I will hereinafter describe as Government securities; (3) debentures issued under Parliamentary authority by local bodies; (4) loans on mortgage of freehold property. I propose that for any investments outside of these four classes, the Board shall obtain special authority from the Governor in Council. I purpose, moreover, that the Board shall be bound to invest two-fifths of its entire assets in Government securities, any investments beyond that amount, to be at the option of the Board; the AuditorGeneral to decide in case of dispute what are current assets from time to time. If these terms are acceptable to you, I will endeavor to have effect given to them by Order-in-Council, and I will at once reduce the amount of Government securities you hold to the minimum before stated.—Julius Vogel.''