FINANCE BILL

Press, Volume LXXXII, Issue 24985, 20 September 1946, Page 6

FINANCE BILL

EXPLANATION BY MINISTER UNRRA COMMITMENTS (P.A.) WELLINGTON, September 19. Discussion of the Finance Bill, with its 42 clauses dealing with a variety of matters, occupied the House of Representatives this afternoon. The Minister of Finance (the Rt. Hon. W. Nash), moving ,the second reading of the bill, said that to August 31 goods New Zealand had supplied to UNRRA, or wes committed to supply, were of a total value of £4,166,723, which meant that our first contribution and a large part of our second contribution to UNRRA’s funds which the bill would authorise had already been expended in New Zealand. Referring to the clause which provided for an increase in the GoyernorGeneral’s allowances from £2OOO to £4500, Mr Nash said that the present sum was fixed in 1920,.and that legislation also limited payments in connexion with gardeners and the upkeep of the grounus to £5OO. The grounds were costing £l2OO a year to-day, and the present bilT omitted the limitation to £5OO. If New Zealand was to have a Gov-ernor-General, said Mr Nash, it should be prepared to meet the cost of the allowances. _ , Mr W. S. Goosman (Opposition, Waikato): The last Governor-General must have had a pretty bad time. Mr Nash: He probably did. The Minister added that special allowances were made where possible. Discussing the clause relating to the iri*crease in the salary of the Chief Justice to £2500 and that of other Judges to £2250, Mr Nash said that if his information was correct they were the lowest paid Judges in the British Empire. _ , Mr F. Langstone (Government Waimarino): They are not doing badly.

Government Borrowing Mr Nash said there was provision in the bill for the Reserve Bank to grant overdrafts to the Government. Previously ‘ when the Government sought an advance from the Reserve Bank, it gave as security Treasury bills. Mr Langsjone: Bite of paper. Mr Nash said that the Government would now have an overdraft account on a day to day basis at a rate of interest which he thought would be 1 per cent The Government could be granted an overdraft of up to 100 per cent, of what it required, but the overdraft would be limited to the amount of investments held by the replying to the debate, said the Government would hold its securities and borrow money by way of overdraft from the Reserve Bank. Mr G. H. Mackley (Opposition, Masterton): The Government borrows against its own security. Mr Nash: We can get the same result by selling securities for the amount of money we require. Mr C. M. Bowden (Opposition, Wel-lington-West): But that would be a different result. Mr Nash; Very different