Financing State Enterprises

Manawatu Times, Volume 66, Issue 186, 7 August 1941, Page 6

Financing State Enterprises

NEW ACCOUNT TO BE CREATED I/er Press Association. WELLINGTON, Aug. 6. State enterprises grouped under tht heading of National Development are to be financed from a new account, the National Development Loans Account, to be treated under the National Development Loans Bill which was introduced aud read a first time in the House to-uighl. 'ihe Minister of Finance (Hon. W. Nash) suid the measure would result in the saving of interest as there would be borrowing for one account instead of for a series. The Bill come* into effect on April J, 3942. ‘‘This Bill places tue national expenditure in its correct perspective,” Mr. Nasa said, “it provides lor the raising of money for national development purposes aud abolishes the old Public Vv’orks Fund and keeps the Consolidated Fund iu its present position. There will be one account and one only into which will go all money borrowed and out of which shall how to various activities associated with the State all money required by them.” The fuuds or accounts to which money will be transferred from the National Development Loans Account during th* first three months of the year ending March 31, 3913, are shown iu the schedule to the Dill. They are the general purposes account of the Public Works Fund, Electric Supply Account, Land for Settlements Account, Mam Highways Account, State Coalmine* Account, State Forests Account, Housing Account and Iron aud Steel Induotry Account. Mr. Nash* said there were others including tfie Linen Flax Industry Account. The purpose of the Bill was to bring into being a new procedure iu connection witn the raising of money and the showing of the money to tho ifouse and to the country.