NO SURPRISES.

Auckland Star, Volume LXX, Issue 194, 18 August 1939, Page 8

NO SURPRISES.

THE FINANCE BILL

£22,700,000 IN LOANS.

PROPOSED PUBLIC WORKS.

EXPENDITURE OT £15,000,000.

(By Telega ph.—Parliamentary Reporter.*

WELLINGTON", this day.

Xo surprises, were sprung 'bv the Finance Bill, which was introduced in the House of Representatives by Governor-Genera I'd Message to-day, tne measure mainly providing for the implementation of some of the more important j>roposals outlined in the Budget.

The Minister of Finance is empowered to borrow £22,700,000, of which £15,000,000 is to be spent on public works. This money is for the construction of railways and additions to open lines, additional rolling stock, telegraph extensions, the construction and improvement of roads and bridges, improved access to land and the development of goldfields.

Expenditure will also be devoted to irrigation works and the erection of public buildings, including schools.

The defence expenditure is to include the acquisition and improvement of land, aircraft armaments, vessels' equipment, stores aud other requirements. There is a sum of £3,200,000 for construction of main highways, £3,500,000 for housing and £1,000,000 for hydro-electric supply purposes. The transfer of last year's surplus of £809,000 from the Consolidated Fund to the Social Security Fund is authorised and' there are a number of machinery provisions which validate minor administrative actions. The increase in income tax outlined in the Budget is authorised, a salient clause reducing the personal exemption from £210 to £200. Relief For Mortgagees. Other clauses include the provision in respect to overseas companies operating in New Zealand whereby interest on overdraft on current account is placed on the same basis as interest on fixed loans for the purposes of taxation. There is also an adjusting clause relating to remitted interest to ensure that a person does not carry forward a fictitious loss of interest against* real profit.

Relief for mortgagees whose overdue interest payments have been capitalised is provided for in the bill. Up to the present time capitalised arrears of interest have been assessed as income for income tax purposes' in the year in which capitalisation occurred, and it is now proposed to spread the capitalised interest over the years in which it accrued.

Another clause provides that any person leaving Xew Zealand must pay income tax and the social security charge, and no ticket may be issued by a transport company to any person who has not received a certificate from the Commissioner of Taxes clearing him from any liability in this respect. This provision will operate from November 1. Estate and Gift Duties. The bill validates the increases in estate succession and gift duties outlined in the Budget, and also the proposal to discontinue the present exemption of £1000 for life insurance money. The Budget proposal which slightly reduces the present exemption for estates passing to widows is modified by the bill. The scale of rates for estate duties range from 11-5 per cent when the final balance of the estate is between £1000 and £2000 up to 24 per cent when the final balance is £100,000 and 30 per cent for excess of the final balance over that figure. When the Bill was introduced the acting-Prime Minister, Mr. Fra--cr, explained that it carried out the Budget proposals and included the clause needed in making arrangements for the utilisation of export credits of £5.000.0011 made available to tl e Xew Zealand (iovernment bv Britai...

Another clause extended the powers of the Dairy Board, which desired to employ a statistician to investigate the economics of the industry.

Taxation provisions followed the Budget announcements, except that the schedule of estate and succession duties had been evened out.

The !Leader of the Opposition, Mr. Hamilton: There is nothing that has not already been revealed? Mr. Fraser: Xo.