LOAN AUTHORITY

Dominion, Volume 31, Issue 296, 10 September 1938, Page 12

LOAN AUTHORITY

Power To Borrow Sum Of £14,500,000 I MONEY FOR PUBLIC WORKS Highways, Housing And Forestry Borrowing authority to the extent of £14,500,000 is conferred on the Government by the Finance Bill which was introduced in the House of Representatives yesterday by Governor-General’s Message. These empowering provisions arc contained in a section of the Bill dealing with public revenues and loans.

The largest individual item in the loan section is one of £8,000,000. The Minister of Finance is empowered to borrow this amount, to be paid to the General Purposes Account of the Public Works Fund, and to be used for the following purposes:—Construction of railways and additions to open lines: provision of additional rolling stock: telegraph extension: construction and improvement of roads, tracks and bridges, improvement of access and development of goldfields: construction of irrigation works: erection of public buildings, including schools: and other public works, including administrative charges. The Minister is also empowered to borrow £1,500.000 for the construction of main highways. £4.000.000 for the purposes of the Housing Act, and an additional £1.000,000 for forestry purposes. In all these cases it is provided that the sums borrowed will bear interest at rates prescribed by the Minister, while in each instance the borrowing authority given is in the nature of a maximum,limit. The borrowing powers in respect of State coni mines are extended from £330,000 to £380.000. Another financial provision in the Bill authorises the payment of additional subsidies from the Consolidated Fund into the various superannuation funds, the maximum additional amount being given as £200.000.