AUTHORITY TO BORROW

Hawera Star, Volume LIV, 25 October 1934, Page 9

AUTHORITY TO BORROW

. rv »• PROVISIONS IN FINANCE BILL TOTAL OF £6,000,000 TO BE RAISED PUBLIC WORKS, ELECTRICITY, HIGHWAYS. Authority to borrow £4,000,000 for public works, £1,000,000 for electric power works and £1,000,000 for the construction of main highways is contained in the Finance Bill (No. 3), introduced by Governor-General’s message and read a first time in the House of Representatives yesterday. The money so borrowed is to bear interest at such rate as the Minister of Finance prescribes. The £4,000,000 borrowed for public works will be applied in such amounts as may be from time to time appropriated by Parliament for the following purposes:

(1) The construction of railways and additions to open lines.

(2) Additional rolling stock for open lines and such other works and purposes in connection therewith as may be authorised. (3) Telegraph extension. (4) The construction and improvement of roads (including main highways), tracks and bridges, for the purpose of providing and improving md|ns of access to any lands, developing goldfields and such other Works and purposes in connection therewith as riTay be authorised. (o) The construction of irrigation works.

(6) Other public works, ihcludihg administrative charges in respect of any public works of tbq classes referred to above.

An ogicial explanation states that insofar as the public works fund is concerned the last authority enacted was contained in the Finance Act (No. 4), 1931. That authority, together with the remnants of other authorities previously granted, had been sufficient to provide for the reduced loan programme of the past three years. After providing for this year’s requirements, however, the authorities available would be reduced to about £1,600,000. which would probably be insufficient for year’s requirements.

As it is undesirable that the funding of the account should be held up for lack of authority a clause in the Bill provided for a further authority of £4,000,000. The amount it is proposed to borrow next financial year has not yet been determined, and it is not likely that the whole of the £4,000,000 will be raised next year. The granting of the authority which may be exercised from time to time by the Minister of Finance does not indicate the raising of any special loan. In regard to electric power works the special borrowing authority for raising loans is also nearly exhausted, and the £1,000,000 mentioned in the Bill will probably be sufficient to complete the works at present in hand with a margin for possible extensions spread over the next two ox* three years. The position is much the same in regard to the construction of main highways. The borrowing authority was practically exhausted, and the £1,000,000 referred to in the Bill should provide for requirements for the next two, and possibly three, years.