EARTHQUAKE BILL

Evening Post, Volume CXI, Issue 74, 28 March 1931, Page 17

EARTHQUAKE BILL

RELIEF PROPOSALS

COMPREHENSIVE MEASURE

THE SPECIAL TAX

The Government's proposals for legislative relief to sufferers by damage to property in the recent Hawkcs Bay earthquake ivcro introduced in the House of llopresentatives last night by Gov-ernor-General's Message. Tho Bill i^ ,n comprehensive measure of 78 *lauses, and lays Sown well-tliought-out machinery enabling " various ' legal aspects to "be dealt ■with. Tho Bill confers power to make extensive regulations further extending the emergency provisions.. Authority is given to the Minister of Finance to take from the reserve fund £1,250,----000 for granting assistance to persons .who Save suffered loss or damage through the earthquake, and to transfer from the State Advances account .& 250,000 for loans to local authorities within the earthquake area. The nature of the assistance to be given is left at the discretion of the Minister of Finance, the Bill prescribing that "such assistance may be by way of loan or grant, partly by loan and partly by grant; and may be made ' with or without security, as the Minister thinks fit." Applications for assistance are to l>e made to the Hawkos Bay Eehabilitation Committee, which the Bill direct* to he set up, comprising five persons appointed by the Minister of Finance. The committee will possess powers of investigation similar to Commissions of Inquiry, and will make, recommendations to the Minister of Finance. In respect of such pecuniary assistance which may be repayable, the Crown is to havo a preferential claim in the event of bankruptcy or winding up within five years./ Moneys paid in respect of land are to be a first charge, and not enforcible for five years, except where a mortgagee under a mortgage executed prior to this grant proceeds to exercise his powers. All deeds connected with the committee's grants are to be free of stamp duty, and the Minister i 3to have, power to waive conditions, and to remit or postpone payments. Ths- State Advances Superintendent is authorised to make loans to local bodies to repair earthquake damage free of- interest for a period mot exceeding five years, and thereafter at 4 per cent, per annum. Local authorities may borrow under these conditions without taking d poll of ratepayers. Loans are to be repaid over a term not exceeding thirty years from the time of the commencement of the payment of interest, INSURANCE TAX. The provisions of the Bill relating to the general insurance tax state that it is to be levied as from Ist May, 1931, in respect of the amounts of contracts of fire insurance, exclusive of contracts for reinsurance effected in respect of ■buildings or contents. The tax will be at the rate of Is 6d per cent, of the 5 amount of such contracts, and. will .be payable quarterly by insurance companies, which are required to submit quarterly returns of insurances. Where property is insured with companies not carrying on business in New Zealand, ,+he insured person will be regarded as ■the agent for the purpose of payment jpf tho tax. Other clauses deal with, the collection of a tax from properties which are not insured with, companies. This is termed the insurablo property tax, and is levied at the same rate aa has already been indicated, on the basis of the total uninsured value of all buildings and contents owned by the owner after making a special exemption of £1000 from their value. The unin. Bured value is to be determined by making deductions' of 10 per cent, from the ascertained value and excluding the amount covered by any insurance contract. The Commissioner of .Taxes will require annual returns from property owners, comprising a complete statement of all buildings and their contents owned as at 31st March, 1931, and the first such return is to bo furnished by Ist June, 1931. The powers of the Commissioner in respect of the assessment and collection of the tax, and the rights of the taxpayer in rojspoi'.t of appeals, are to be the same as if. the tax wore land tax. All receipts from the insurance tax lire to be credited to the Beserve Fund Account, from which the Government 5s taking the rehabilitation loan, AN ADJUSTMENT COURT. Another part of tho Bill empowers (the appointment and operation- of a H.-nvkes Bay Adjustment Court, which will comprise a President and two nominated members. The President is to be the Chief Justice, or such person as lie assigns to that position, and th« .nominated mqmbers are to1 be appointed by the Governor-General in Council, ,ivho may also appoint reserved nominated members of the Court. The Court jproccduro is to be similar to that of tho S.upremo Court, and the Court will exercise extensive powers for the granting of relief from obligations or encumbrances. The Court will receive applications for relief from these obligations, and make declaratory orders .where the applicant is able to prove [that by reason of loss or destruction »f property.' or deterioration of any assets arising out of th/C'earthquake he •would suffer undue hardship if he were required ,to comply with or continue to ibc bound by such obligation, or if such property continued to be subject to puch encumbrance. In granting relief, the Court is directed to have regard for the relative position of the parties concerned, and the jScgree to which the granting of relief would bo reasonably likely to,.be of permanent benefit to the applicant, in .view of his circumstances and particularly his assets and other liabilities. (While such proceedings are before tho Court no other powers aro to be exercised in the way of execution of judgment in civil jurisdiction, whether granted before or after the passing of the Act. This prohibition also applies to a creditor's petition in bankruptcy or a petition for winding up' a company. SAFEGUARDS. There are safeguarding clauses enabling the Court to reopen proceedings by persons whose claims have been affected by tho Court's order. The Court is empowered to hear applications in camera, and there is to be general relief from fees unless tho Court considers any person acted unconscionably, when it may order costs. Any other Court may stay proceedings pending proceedings in the Adjustment Court, and the latter may refer any proceedings to a specified Magistrate, or to any person to whom the parties concerned agree should deal with it. The Court's orders will bind all persons having an interest in land affected, and will have the same effect as a declaratory order of the Supreme Court. This section of the Act will apply to.the Crown. Miscellaneous provisions contain ex-tensive'-.validations enabling public ibodies, friendly societies,.etc., to make (Continued at foot of opposite column.)