FINANCE BILL

Ashburton Guardian, Volume 61, Issue 253, 7 August 1941, Page 8

FINANCE BILL

AUTHORITY FOR BORROWING. TOTAL OF £80,000,000 PROVIDED (P.A.) WELLINGTON, August 6. The increased borrowing foreshadowed in the Budget, together with a wide variety of other amendments to Sfhe existing law, is provided for in the Finance Bill which was introduced in the House to-night. The Bill, which was read a first time, clauses, some of a minor nature, and others highly technical, relating to the reconstruction of certain companies. The Minister of Finance is empowered by the Bill to borrow £BO,000,000 in respect of war expenses. The Minister is also given power to borrow v an additional £1,000,000 for electric-power works. There is also an increase of borrowing powers in respect of the State coal mines, the. total being raised to £510,000. Provision is made for additional to be paid into the War Expenses Account. In addition to other money payable to the account, it shall be credited with three-twentythirds of the revenue from income tax during the financial year ended March 31, 1942. The Marketing Department is empowered to make advances by way of loan on account of goods that it is authorised to purchase. Extra Social Security Benefits. The promised increases in war veterans’ allowances in respect of each dependent child are made in the Bill, the sum being raised from £l3 to £26 a year, and the maximum payable to a veteran, his wife and children being raised' from £156 to £2OB a year. The promises made in the Budget of certain increased benefits under the Social Security Act are also redeemed. The commission is authorised in certain cases to increase the age benefits by £26 a year instead of £l3. In addition, the rate of benefit for children of persons receiving age benefits may be increased, to £26 a year. Family benefits are also to be payable in respect of the first child and the maximurti' rate of invalids’ benefits is raised from £2OB a year to £234. A new increase now mentioned in the Budget is the payment of 10s a week for each child under the sickness benefit as well as in widows and age benefits. Mr Nash added that another clause which was involved and which related to the subject discussed at length last year stipulated that the value of a farmer’s livestock at April 1, 1940, was the same as its value ■» on March 31, 1940. It removes the anomaly pointed out last year. Part three of the Bill relating to local authorities and public 'bodies includes a clause which Mr Nash said was likely to create discussion. It provides for, the Crown to have liability for rates in certain circumstances and practically assures that a local body will get full rates either from the vendor or purchaser for the property for the whole year. Debenture Interest. ‘‘The last, a long, intricate, and important clause, relates to the Act passed last year under which interest on debentures issued by companies was not deductable from gross income before it became assessable income,” Mr Nash said. ‘‘This gives companies that, are affected the right to reconstruct their companies and to convert debentures in certain cases to shares, after they have got the consent of the Supreme Court for the particular proposal to be put before their shareholders and debenture holders.”