INTERNAL LOAN

Waipukurau Press, Volume XXVIII, Issue 74, 21 March 1933, Page 3

INTERNAL LOAN

CH RISTCHURCH CITY COL N CH/ APPROVAL OF PRINCIPLE A proposal that the Government should raise an internal loan of £5,000,000 at 4 per cent for uneiuploment relief was made at the meeting of the City Council recently, by Councillor Elizabeth R. McCombs. A discussion on the subject ensued following the receipt of a letter from the Minister of Employment (the Hon. A. Hamilton) replying to tiia council’s protest against the inadequate scale of relief payments. The council carried a motion approving of the principle of an internal loan, the consideration of details to be left to the Finance Committee. Councillor M’Combs said she did not think the Minister’s letter was a sufficient reply to the council’s protest. She moved: — That the attention of the Government be drawn to the fact that many of the local bodies are finding it exceedingly difficult to meet their share of the unemployment expenditure that the Government be urged to raise an internal unemployment loan of £5,000,000 at 4 per cent., to be used for public works of permanent value and that local bodies willing to undertake such work in their own districts be allowed to draw on the fund for expenses other than wages, the Government to pay half the cost, and that £500,000 of the Unemploy-

ment Board’s fund be set aside each year for the redemption of the loan. The motion was seconded by Councillor G. T. Thurston. Councillor E. H. Andrews said that the motion had been rather sprung upon the council and he felt that more time should be allowed for consideration. The proposal, he added, had some merits he did not want to oppose it without having more time to look into it. He moved as an amendment “that the proposal be referred to the Finance Committee for consideration.' Councillor M’Combs agreed to amend her motion on the lines of the council approving of the principle, while consideration of the amount, rate of interest, period and other details should be left to the Finance Committee. The amendment was lost by eight votes to seven, and the motion, with the alterations agreed upon by Councillor M’Combs, was carried by ten to five. The minority consisted of Councillors Evans, Lyons, M’Lachlan, Beanland and Andrews.