SAVING OF £646.

Star (Christchurch), Volume XLIV, Issue 366, 7 March 1932, Page 7

SAVING OF £646.

Drainage Board Benefits by Cut Interest. A saving of £646 17s 6d a year will be made by the Christchurch Drainage Board as a result of the ruling given by the Audit Department that interest payments on loans domiciled in New South Wales must be reduced by 22i per cent. The board has now received official advice from the Audit Department that it must make the reduction, and the saving will be made at the end of this month when the next payment of interest is due. The advice received from the board from the Department mentions only loans domiciled in New South Wales. The board has a £50,000 loan domiciled in that State and loans of £225,000 held in Yictoria. According to its official advice the board is not required to make the deduction in respect of the Victorian loans. In these circumstances it is assumed that the interest reduction legislation passed in New South Wales must have application to loans to local bodies outside that State, and that the legislation passed in the other States applies to domestic loans only, An interesting position seems likely to arise in the case of the loans raised in New South Wales by the Christchurch Tramways Board. In the case of these loans the interest is payable by cheque drawn on the board’s ac-

count in Christchurch, and one mart with whom the position was discussed expressed the view that the loans were therefore domiciled in New Zealand and not in New South Wales.