FINANCE BILL

Press, Volume LXXVII, Issue 23401, 7 August 1941, Page 6

FINANCE BILL

Borrowing For War Purposes MANY IMPORTANT CLAUSES (P.R.) WELLINGTON, August 6. 3&e increased borrowing for* shadowed in the Budget, together with a wide variety of other amendment* to existing law, are provided for in t Finance Bill which was introduced in the House to-night. The bill, which was read a first time, contains 4J clauses, some of a minor nature, and others highly technical relating to tho reconstruction of certain companies. The Minister for Finance is empowered by the bill to borrow £80,000,000 in respect of war expenses. A clause in last year’s Finance Act, which authorised the borrowing of £40.000,000 for this purpose, being repealed. He is also given power to borrow an additional £1,000,000 for electric-power works! the money to be paid into the electric supply account. There is also an increase of borrowing powers in respect of the State coal-mines, the total being raised to £510,000. Another clause authorises the issue of stock certificates for multiples o| £5.

Provision is made for additional revenue to be paid into the war expenses account. In addition to other money payable to the account, it shall be credited with three-twenty-thirdj of the revenue from income tax during the financial year ending on March 31, 1942. Power is included for paying from the Consolidated Fund amounts not exceeding £200,000 into various superannuation funds.

The Marketing Department is empowered to make advances by way of loan on account of goods that It ie authorised to purchase. The Hon.W. Nash, who explained the bill, said Outthe idea was a very simple one. The department had already power to buy anything it desired, and could now make advances on goods it proposed to buy. The advances are to be pert of the purchase price. Exemption from stamp duty of receipts for travelling allowances is provided in another clause.

The annual licence duty payable by agents of foreign insurance companies is increased from £2OO to £3OO, Tin definition of a foreign insurance company is also amended. There is also a machinery clause providing that elections by contributors to superannuation funds to accept reduced pensions to make provision for their defendants shall not be taken into account for the purposes Of gift or stamp duty. The allowances may be declared to be pay or salary for superannuation purposes. Mr Nash said that another clause was included to ensure that married training college teachers would get the minimum rate for married Government servants. It is provided that regulations prescribing the rates of pay for married training college student! and certain classes of married teachers may operate from October 1, 1940. War Veterans The promised increases in war veterans’ allowances in respect of each dependent child are also made, the sum being raised from £l3 th £26 a year, and the maximum payable to a veteran, his wife, and children being raised from £156 to £2OB a year. This section comes into force on September 1, 1941. . 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 age benefits by £ZB a year, instead of £l3. , In addition, the rate of benefit for children of . persons receiving the age benefits may be increased to £26 a year. Family benefits are also to be payable In respect of the first child, and the maximum rate of invalids’ benefits is raised from £2OB to £234 a year A new increase not mentioned in the Budget is the payment of 10s a week for each child under the sickness benefit, ar well as in the-widows’ and age benefits. There is also provision for minor exemptions in the payment of national and social security taxes by trustees. , Mr Nash said that another clause., which was involved and which related to a subject discussed at length last year, stipulated that the value * farmer’s livestock at April 1,1940, WM the same as its value on March 3i, 1940. It removed an anomaly pointed out last year.

Crown’s Liability for Rates Part three of the bill, relating to local authorities and public bodies, includes a clause which Mr Nash saw was likely to create discussion. It pro- : vides for the Crown to have liability for rates in certain circumstances, and practically assures that a local body; will get the full rates, either from the vendor or purchaser, for a property for a whole year. The Crown is not. to be liable for rates in respect ofim* provements made for war purposes. This section, which operates from April 1, 1941, was mentioned by Mr Nash W connexion with such works as the pro*. vision of military camps. ' . The Leader of the Opposition (Mr ■ S. G. Holland): Will this apply W • manufacturers who build new iactonaf for war purposes? - i .Mr Nash: No. Only to camps. NO : one will argue that because the Crown ; , has to spend money for a camp in tp»» area people should be relieved of pay* ing rates bn their property. = '■ Mr Holland: Won’t you give private. • enterprise the same right? , “We give it to them every time, ; v replied Mr Nash. “If the Opposition; were so keen on State enterprise a# 1* - is on private enterprise, both State, and private enterprises might get pet*-.; There is power in the bill for author*; , ity to be given local authorities to ln*'j vest loan-moneys in Government w*. curities. Local authorities may also act as one another’s agents in collecting money. , . „ Several clauses validate borrowing by various local authorities. In tn* , case of fire boards, expenditure apova the estimate approved incurred w connexion with emergency fire equip* ment, or increased wages, is validates. Government subsidies for centennial. ... memorials in anticipation of grant* from local authorities are also van* dated, and similar treatment Is ae* corded in respect of money spent oy local bodies in saying farewell to Lora and Lady Galway, and welcoming »*» Cyril and Lady Newall. • It is stipulated that buildings hirea by the Crown to dairy companies W* accommodation of workers remain me property of the Crown. Mr Nash Mia the clause gave the Crown the rign to take buildings away if it so desireo without affecting the title of the owner of the land. . , , “The last, lengthy, intricate, and un portant clause relates to an act passw fast year, under which interest on ae , bentures issued by companies was n deductible from the gross income pc; fore it became the assessable income. •, . Mr Nash said. “This gives the companies that are affected the right tore* . construct their companies, and to cw vert the debentures in certain to shares, after they have got the con . sent of the Supreme Court for the perticular proposal to be put before tn ß “ shareholders and debenture holder*. ; Mr Holland: Does that put the ChlUl* church case right? . Mr Nash: Not quite; but it appn« » > • five or six.