INVESTMENT OF MONEYS

Press, Volume LXXII, Issue 21908, 8 October 1936, Page 12

INVESTMENT OF MONEYS

PUBLIC TRUSTEE GIVEN WIDER POWERS

PROVISIONS OF SECOND FINANCE BILL

[From Our Parliamentary Reporter.!

WELLINGTON. October 7.

Additional powers for the investment of moneys and general administration are conferred on the Public Trustee in terms of the Finance Bill, No. 2, which was introduced in the House of Representatives to-day. In addition to powers of investment of moneys in the common fund of the Public Trust Office, authority is given for investment in the bonds, stock, and other securities of the State Advances Corporation, or by way. of mortgage on such security, and in mortgage advances on bonds, stocks, debentures, or other securities issued by any Government, local authority, or public body. The mortgage advance in the latter class may be made up to nine-tenths of the nominal value of the security on terms and conditions to be determined by the Public Trustee.

The. margins for security for certain classes of investment by the Public Trustee, as defined in the Public Trust Office Act, 1908, are amended. In the case of real estate, the margin has been extended from three-fifths to twm-thirds. In local body debentures secured on rents and profits, the return must be sufficient to pay one-half, instead of two-thirds, more than the annual interest payable in respect of the advance. Margins for freehold and leasehold mortgages are extended from three-fifths to two-thirds.' Additional powers are conferred on the Public Trustee in dealing with unclaimed property, and provision is made for the opening of separate accounts for estates administered by the Public Trustee,

TOTALISATOR DUTY REMISSION

COMPENSATION FOR LANDS TAKEN UNDER ACT

[From Our Parliamentary Reporter]

■WELLINGTON, October 7

Numerous miscellaneous provisions dealing with public revenue and departmental administration are contained in the Finance Bill No. 2, which was introduced in the Hqusb of Representatives to-day. One clause makes a temporary amendment to- the Public Revenues Act, by extending the annual appropriations by six months where necessary. At present, appropriations can be extended for three months. The amendment will operate from March 31, 1937. It appears to be designed to cover the long parliamentary recess which is after the close of the present session. Another clause fixes the remission of totalisator duty to racing clubs at one-fifth of the total amount of duty payable between August 1 this year and July 31 next year.

‘ The variation of rates of interest is authorised on loans secured by Government Life Insurance policies. Reductions, are to be permitted, and rates reduced under the National Expenditure Act are not to be increased. Any variation can take effect oh a date to be fixed by Order-in-Council. The margin of security for investments in real estate from the Government Insurance Account is extended from three-fifths to two-thirds of the value of the security.

A new basis is laid down for the assessment of compensation for lands tdken under the Public Works Act. It is provided that the land should be assessed as nearly as possible at its current market value, and the special suitability of the land for Government purposes is not to be taken into consideration. If the value of the land is likely to be increased by any proposed public work, that factor also is not to enter into the question. The relevant section in the Public Works Act, 1928, is repealed, but authority is given for claims already lodged to proceed. Authority is given for the Minister for Public Works to undertake irrigation, drainage, and rec’amation works on private lands, without having to acquire lands so used. The existing compensation provisions will apply. Another clause provides that the three members of the recent parliamentary delegation to the Cook Islands—Messrs J. Robertson (Govt., Masterton), Mr C. L. Hunter (Govt., Manawatu), and Mr S. G. Holland (Nat., Christchurch North) —are not to be disqualified on account of payments which they received for their services.