FINANCE BILL.

Press, Volume LVI, Issue 16987, 9 November 1920, Page 6

FINANCE BILL.

i INTRODUCED IN HOUSE. | AUTHOBITY TO EAISE £6,000,000. | i (SPECUL. TO "THE PRESS.") i ■WELLINGTON". November S. 1 The long-expected Finance Bill v.ts introduced in the House of Hcprcsentatives this evening }>y Governor's message. In explaining; tlio proposals of the [measure, the. Prime Minister said thnt the first part of it dealt with pensions j for the aged, for miners suffering from! minors' phthisis, and for widows. Answering Mr Parry, ho said that ii did not contain provisions for pensions for the blind. Iho second part of the measure dealt with borrowing for tho I future. It was proposed to take nuj thority to raise £y,iMu,OCO for hydroelectric work and other public purposes. This appeared a formidable slim, but ho did not think it would be necessary to raise any of it this financial year. Tho £6,O0l),OCO would be spread over five years. He did not know that it would be necessary to go on tho open market at all, but authority was being taken. Provision was being mado to meet various difficulties experienced by local bodies. One was in the direction of taking advantage of the water-power. In Southland a . Board was formed 6ome little time ago for the purpose of carrying on hydroelectric works. A difficulty had cropped up in regard to iinance. There had been an appeal to the Government which desired to assist the Board, and see it through. This involved the expenditure of £1,500,000 over a scries of years. Tho work could not bo allowed to stay where, it was. . It had to be carried on. There was quite a number of minor points dealing with local bodies. A clause gave authority to the Auckland Savings Bank to contribute* £10,000 to the War Memorial Fund, and there was power for tho Auckland Harbour Board to contribute £5000 to the same object. There was an additional grant to Canterbury College. Provision was also made for tho disposal of canteen funds. The Government had nothing to do with these. They would be handed over to a. Board. There was .also provision for increasing the borrowing power of Fire Boards. Tho difficulty had cropped up in tho town of Huiitly. Higher rating powers would be given. There was also provision for the distribution of tho bonus —or more correctly, of tho profits —on wool. Authority was being given to permit tho Minister of Finance, if necessarv. to guarantee tho advances mado'liy the banks to the producers. He did not think it would be necessary, but tlie Government felt that it was desirable to take authority. Additional protection for the wheat-growers was provided. One of the objections raised by tho wheat-growers against their position was that in the event of a fall in tlie market, wheat might bo 'dumped into New Zealand without there being any protection. The Government was taking authority to protect them, if necessary. These were the princioal points in tho Bill. Only half-a-dozen oT" tho clauses were of great importance. Mr Miissey said he proposed to tako the discussion on tlie Bill to-morrow. He remarked that the question of tho rate of interest to bo paid by local bodies would be dealt with in the Appropriation Bill. MILITARY PENSIONS. Tho Finance Bill contains special provisions regarding war pensions. A War Pensions JVtedical Appeal Board, consisting of three medical practitioners, is to be set up. Appeals are provided for in so far as they consist in: (a) The rejection of any claim for a pension on the ground that the death or disablement of the members of tho Forces in respect of whose death or disablement the claim is made, was not duo directly or indirectly to his ernplovment as a member of tho Forces, or in tho case of disablement that the condition of disablement was not aggravated by such employment; and (b) The assessment of a pension granted, to any member of tho Forces in so far as the assessment is based on medical grounds. On any anneal under this section the Board may confirm the decision of the War Pensions Board, or may grant a nension, or may increase or reduce the amount of any pension. INCREASE IN PENSIONS. There are various amendments contained in the Finance Bill in the law relating to pensions. In regard to the definition of the income of an applicant, any pension under the Miners Phthisis Act is excluded. Pensions payable under tho War Pensions Act, 1915, and any moneys received by the applicant not exceeding £39 in any year, are excluded from tho definition. In cases where an applicant has received payments under two or more of the exemptions, the, exemptions are to be alternative and not cumulative, but tho applicant shall be entitled to the exemption which will allow the greater amount of pension. In regard to old age pensions, tho limitation of yearly income is extended "from £60 to £78." In the present Act tho net value of a claimant's accumulated property is eet down at £2GO. The Bill provides for £390. The amount of pension is increased from £20 a year to £39. Tlie deductions for furniture and personal effects in section 10 of the Bill are increased from £340 to £390. Maori, war pensions are increased from £36 to £4d. Tho miners' phthisis pension is increased from 30s to 35s a week to married men, and to single men from £1 to £1 os. . , . Absence from New Zealand is not to involve "forfeiture of old age pensions, widows' pensions, miners' pension, or military pension, provided that it is for a p'eriod not exceeding two years. ADDITIONAL DETAILS. [ The dctaiis of the Finance Bill show that the loan authority, is for £3,300,000 for cleftiic power works, £2,500,000 for other public works and £000,000 for the trade in phosphate ?rom Nauru and Ocean Islands. Authority is to be given for tho issue of Post Office investment certificates of such an amount below face value as the Minister of Finance may determine. They aro to be repayable in five years at full face value. The guarantee on advances made by I banks is not only in respect to financing producers, but extends to advances mado by the banks for investment under the Discharged Soldiers' Settlement Loans Act 1920. . ... An appropriation of totahsator fractions requires them to be paid to the Government within, seven, days after tho conclusion of the race meeting. This provision comes into force on July Ist next. The protection to wheat growers mentioned by. tho Prime Minister provides that on" the recommendation of the Board of Trade, the duty payable on imported wheat and flour may be increased by Order in Council tp to a maximum of Is 3d a bushel for wheat and £2 10s a ton for flour. The order is to bo revoked as soon as the Board of Trade advises that the current prices are sufficient to supply adequate remuneration to the wheat grower.

The .portion dealing with local bodies covers a wide field. Where a local authority has been authorised to raise_ a loan and cannot obtain the money at the specified rate of interest, it may with the consent of the Finance Minister bo permitted by Order i;i Council to raise it at an increased rate. Power is given for the sotting up of a commission to enquire into the advisability of extending the rating powers of the Huntly Town Board. The extra grant to Canterbury

College is to be £2000 a vear—£l7so for the engineering school and the j balance as a contribution to the salary j of the Professor of Education. j The arrangements made in regard to i the Southland Power Board aro that, the authority it already holds to borrow £1,5CX).0D0 is made subject to the State guaranteed loans provisions of the Local Bodies' Loans Act 1913. Pending the borrowing of the money, the Minister of Finance may advance to tho Board such sums «s may be required to ineet its obligations or guarantee any Bank advance for that purpose. Tlie £6.000.000 loan authorised is to be devoted to the following purposes: — £ Wa'karenioana scheme ... 2.600,000 Kaituna river (Rotoraal electric works Lake Coleridge works ... .20,(00 Surveys and preliminary inve*tirrat:ons for other powe:schemes 30.000 I? nil way construction ... 1. 000 Telegraph extension ... 000.000 Other public works ... 750,000 ' \