NEW FINANCE BILL

Greymouth Evening Star, 9 November 1931, Page 5

NEW FINANCE BILL

TAXATION EXEMPTIONS ] REBATE TO RACING CLUBS [special to “stab.”] WELLINGTON, November 7. Authority for the borrowing of a sum not exceeding £3,000,000 for Public Works purposes, is contained in the Finance Bill (No. 4), introduced in the House to-day. The former limitation of temporarily borrowing on Treasury Bills, which was £6,000,000 per annum, is changed to a total not exceeding one-third of the estimated expenditure for the current financial year. Under the Hawke’s Bay Earthquake Act, the Minister of Finance was empowered to sell securities for the purpose of providing funds not exceeding £1,500,000 for the purposes of that special legislation. It is now desired to authorise the sale of the balance of securities and pay the proceeds into the Consolidated Fund and the Minister is therefore empowered to transfer from the reserve fund account to the Consolidated Fund, a sum not exceeding £550,000. He is ajso empowered to hypothecate securities in which public moneys are invested, and held by the Treasury, or Post Office. In accordance with the recent announcement in the supplementary budget, a depreciation fund in connection with the discharged soldiers settlement account is to be transferred to the Consolidated Fund.

The power contained in the Finance Act of the session last April for the retirement of public servants on superannuation after 30 years’ service, expired on September 30, and a new bill renews it for an indefinite period. Special provision is made affecting the General Manager of Railways, who is to be deemed to have been entitled as of right to retire from the service on September 4, 1936, or at any date thereafter. Contributors to local body superannuation funds are given the right if their salaries have been reduced to contribute on the basis of their former salaries. A reduction from £15,000 to* £12,625 in the grant to the Massey college is to be made this year, and in every subsequent year the amount is to be reduced to £lO,OOO.

Sound pictures made in New Zealand are to be exempted from taxation. Another clause provides l that no firm shall act as a sharebroker unless every partner is the holder of a licepse. No company will be permitted to act as sharebroker unless every person acting for it in that behalf is the holder of a license, the fee for registration of stock exchange is increased from £1 to £lO, and the fee for registering the rules of exchanges is fixed at £5. Complete or partial exemption from obligations, in respect of payment of interest on investments by friendly societies may be made if the GovernorGeneral is of opinion that compliance with the requirements during the two financial years ended March 31 last is impossible, or would impose undue hardship.

Adjustment of the date of licensing committee elections is affected. The next election will be held on the second Tuesday in the month of March, following the taking of the next licensing poll. Subsequently, the elections will be held on the same day in every third year. Power is given to the Minister of Finance to make rebate to racing clubs as from the commencement of the 1931 financial year, of 11 per cent, of the gross totalisator takings, but not exceeding £250 in any one year. If the Minister considers the financial position of a club makes it expedient to do so, he may increase the rebate to per cent., but so that the total refund does not exceed £5OO. He may also specify the purposes to which the refunds are to be applied. UNEMPLOYMENT RELIEF A miscellany of new provisions under the Unemployment Act appears in the second section of the Finance Bill (No. 4). Authority may be given to any local authority with the concurrence of the Unemployment Board, to carry out any works in relief of unemployment, whether within the ordinary functions of the local body or not, and irrespective of whether they are for the benefit of. privately owned property or other property. Expenditure incurred 'in such relief works may be paid out of the genera! fund, on account of the local body, or out of any separate account, but not out of loan or special rate account, unless provision has been made for that purpose. Arrangements may be made between local bodies and owners, or occupiers of lands, benefited by relief works, for the recovery of the cost of work done, either in whole or in part.

Subject to the concurrence of the Minister of Finance, and on the recommendation of the Unemployment Board, the Minister of Public Works may undertake drainage, irrigation, reclamation or other works of a reproductive character, on or for the benefit of properties privately owned or otherwise. Similar power may he delegated by the Minister to local bodies. It is made clear that the unemployment tax is not payable by persons who are not ordinarily resident in the Dominion, and that income received in, but not derived from New Zealand is alo exempt from the unemployment charge, if the Board is satisfied that the income has been taxed in the country where it was earned.

MARRIED WOMEN TEACHERS Conditional authority for the termination of the employment of married 1 women as school teachers, is contained in the Finance Bill (No. 4). Subject to three months’ notice being given, any Education Board may terminate the engagement of any married women teacher in its service. Before giving notice, however, the Board must have received and considered a report from the Senior Inspector together with such recommendations as he thinks fit to make. Right of appeal against dismissal will, of course, still apply and the Court of Appeal will take into Consideration the financial position and responsibilities of the appellant and her husband. If the Court is of opinion that the termination of the teacher’s engagement would constitute undue hardship, it may grant the appeal. The annual grant to school committees for general purposes is reduced

from 3/6 to 2/6 for every child in attendance. Another clause exempts from rates lands, other than endowments, held by education authorities. COUNTY COUNCIL RATES In accordance with the proposals contained in the Supplementary Budget for relief in thb matter of rural rating, provision is made in the Finance Act for payment to every county council out of main highways revenue fund, not later than March 31 next, of a subsidy of -2/6 in £ on the average amount of rates certified to have been collected during the three financial years 1927-28, 1928-29 and 192930. On receiving the subsidy money, county councils are to apply it for the purpose of granting to ratepayers a refund or rebate of 12£ per

cent, in rates levied for the current financial year, and paid not later than March 31, 1932. Any remaining balance is to be credited to the councils general account for. such of its purposes other than those for the last year, the Minister may l authorise such reduction in the rate of refund, or rebate as he thinks proper.