NEW ACCOUNT

Dominion, Volume 34, Issue 267, 7 August 1941, Page 8

NEW ACCOUNT

National Development „ Loans STATE FINANCE Bill Introduced In The House State enterprises grouped under the heading of national development are to be financed from a new account, the national development loans account, to be created under the National Development Loans Bill, which was introduced and read a first time in the House of Representatives last night. The Minister of Finance, Mr. Nash, said the measure would result in a saving of interest, as there would be borrowing for one account, instead of for a series.

“This Bill places the national expenditure in its correct perspective,’ Mr. Nash said. “It provides for the raising of money for national development purposes, and abolishes the old Public Works fund, and keeps the Consolidated Fund in its present position. There will be one account and one only into which will go all money borrowed and out of which shall flow to the various activities associated with the State all the money required by them.” Funds or accounts to which money may be transferred from the national development loans account during the first three months of tlie year ending March 31, 1943, shown in a schedule to the Bill, are the general purposes account of the Public Works fund, the electric supply account, the land for settlement account, the main highways account, the State coal mines account, the State forests account, the housing account, and the iron and steel industry account. Mr. Nash said that there were others, including the linen flax industry account. Authority of House.

The Minister said that the money would be borrowed under the authority of the House in the ordinary way and would go into this loan account. Under the authority of the House there would go out of the account the money necessary for public works and various other activities. The purpose of the Bill was to bring into being a new procedure in connexion with the raising of money and the showing of the money to the House and to the conntry. Mr. Polson (Opposition, Stratford) : AVill the Public Works continue to administer the fund? Mr. Nash: No. It will continue to administer the public works fund. The electric-supply department will administer the electric supply account and the State Housing Department the State housing account. Mr. Polson: Will that not lead to a duplication of engineering? Mr. Nash: No. There will be a saving of interest just by the accountancy procedure, because of the fact that we borrow for one account only instead of borrowing for a dozen accounts, and having to keep balances in them. The Leader of the Opposition, Mr. Holland: Do you hope to create any new money this year? Mr. Nash: The authority for raising money this year will be provided for in the Finance Bill. Provisions of Bill.

The Bill, which is scheduled to operate from April 1, 1942, empowers the Minister of Finance to borrow sums not exceeding the aggregate authorized, all the money to lie paid into the public iicount to the credit of the national development loans account. One clause provides that where an Appropriation Act has authorized the transfer from the national development loan account of an amount to another account, there may be transferred during the first three months of the succeeding financial year any balance of the authorized sum iiot transferred, plus a further amount equal to one-quarter of the total authorized. The Bill authorizes the transfer, during the first three months of the financial year ending on March 31, 1943, of sums not exceeding £4,000,000 from the

national development loans account to the funds and accounts mentioned in the schedule. If the Minister considers the amount authorized by the Appropriation Act in any year to be transferred from the loans account to any fund is not sufficient, there may be transferred during tlie year such further sums as tlie Minister may direct, provided that the sums transferred under this section in any financial year are not more than 10 per cent, of the total authorized to be transferred. It is further provided that a statement | showing the sums transferred under this section in any financial year and the funds to which they have been transferred, certified by the Audit Office, shall be laid before Parliament within 10 days of the lieginning of the first session of Parliament in the next financial year. The measure provides that money transferred from the loans account to any other fund except the Consolidated Fund, shall be a capital liability of that fund to the Consolidated Fund. Interest o’n the capital liability under this section is to be paid from the appropriate fund to the Consolidated Fund at a rate of interest to be prescribed by the Minister. Different rates may be fixed for different sums.