THIRTEEN MILLIONS

Nelson Evening Mail, Volume LXX, 8 October 1936, Page 11

THIRTEEN MILLIONS

AUTHORITY TO BORROW FOR PUBLIC WORKS, HIGHWAYS AND HOUSING WIDER POWERS TO RESERVE BANK PROVISIONS OF FINANCE (Prom “The Mail’s” Parliamentary Reporter) WELLINGTON, This Day. Authority for the Minister of Finance to borrow up to £13,000,000 for public works, construction of main highways, and housing, is one of the features of the Finance Bill introduced into the House of Representatives yesterday afternoon by Governor-Gen-eral’s message. Other provisions of the Bill give the Reserve Bank of New Zealand wider powers in the granting of accommodation, and permit the bank to underwrite State Advances Corporation loans. The Bill also amends the pension legislation, and there is provision enabling local bodies to raise loans, under certain circumstances, without the usual poll of the ratepayers.

Authority is given the Minister of Finance to borrow £6,000,000 for public Works, £2,000,000 for the construction of main highways, and £5,000,000 for the purposes of the Housing Act, 1919. Annual appropriations are extended three months making the whole period of the appropriation six months in all. The proportion of the money so spent has been increased from one-fourth to one-half of the particular . vote. Correspondingly, the period in which the Government may pay salaries, etc., lias been extended three months. These amendments to, the Public Revenues Act, 1926, are operative till 30th September, 1937.

PENSIONS AMENDMENTS In the case of a mother who has care of children, though she is not entuled to the widow’s pension, she may be granted a pension not exceeding that paid to a widow with the same number of children dependant on her. To qualify for the pension, the father of the children must be dead, or subject to a. reception order under the Mental Defectives Act, 1911, is detained in an institution under that Act, or has failed to provide adequately for his children. The pension is to cease when the children have become 15 years of age. The provisions as to the computation of miners’ pensions and invalidity pension in cases where the wife of the applicant is in receipt of a pension have been modified. No allowance is to be payable in respect of the wife of the applicant for any period in respect of which she is in receipt of a pension under the Pensions Act, 1926.

, The pensions legislation of this session is amended by the extension of its provisions to wives whose husbands are mentally defective. An amendment has been made to the method of computing the invalidity pension payable to married wo- ' men. In such cases, the annual amount computed is to be diminished by £1 for every complete £ of the total annual income of the applicant and of her husband in excess of £lO4, and also by £1 of every complete £lO of the net capital value of the accumulated property of the applicant and of her husband, computed as in the case of an application for an old age pension.

POWERS OF LOCAL AUTHORITIES Local authorities may, (unless a poll is demanded under certain conditions) borrow money for work undertaken for the relief of unemployment, if a grant has been made towards the work out of the Employment Fund. A poll must be taken if 5 per cent, of the ratepayers demand it.

Similar authority is given electric power boards to raise additional loans for reticulation purposes without a poll of ratepayers, and in this case •5 per cent, of the ratepayers may demand a poll. Where a local authority has borrowed to pay off an existing loan, the payment of interest is validated in respect of the period intervening between the borrowing of the money and the payment of the loan. Expenditure of local authorities in connection with observances at the deatii of King George V, and the accesion of King Edward VIII, is validated. PUBLIC TRUSTEE

Tn addition to his present cowers of investment, the Public Trustee may! invest money in the common fund of the Public Trust Office in bonds, stock, or other securities of the State Advances Corporation, or in advances by way of mortgage on the security of such bonds, etc. He may also make advances by way of mortgage on the security of any bonds, stock, debentures, or other securities issued by any Government or by any local authority or public body. Advances so made may be up to nine-tenths of the nominal value of the security. The margin of security for investments by the Public Trustee has been increased from t.lwee-fifths to twothirds, and whore debentures are secured on rents and profits, one-half of the annual interest is the minimum requirement instead of two-thirds, as previously. The powers of the Public Trustee with respect to unclaimed property have beer, extended, and he may now carry on ar.y business forming part of the property for not more than two years. Authority is given him, inter alia, to exercise any power of sale, to borrow r to make requisite payments, and he may exercise any powers that the Judge thinks expedient in the advantageous administration of the property.

The Public Trustee may open separate accounts for estates administered by him. . Variation of the rates of interest on loans secured by Government Life Insurance policies is authorised. Where

the rate of interest or the maximum rate is specifically fixed in the instrument, the rate may be reduced but not increased. Where 5 the rate has been reduced by the National Expenditure Adjustment Act, 1932, the reduced rate is not to be increased. RESERVE BANK The authority of the Reserve Hank to grant accommodation has been extended, and in addition to granting accommodation to the Treasury, the bank may now grant accommodation to any incorporated department of State, or to any local authority or public body. The Reserve Bank is given authority to underwrite loans raised by the State Advances Corporation.

The appointment of Mr Mark Silver - stone, of Dunedin, as a member of the Board of Directors of the Reserve Bank is validated. Mr Silverstone’s appointment was invalid because he was'a naturalised British subject, whereas the Act stated that board members must.be of British birth.

OTHER PROVISIONS A new basis is laid down for the assessment of compensation for lands taken under the Public Works Act, 1928, Where the value of land taken for any public work is increased or reduced by the work, the amount of the increase or reduction shall not be taken into account. The Court is to take into account any increase caused by the work in the value of any land of the claimant that is injuriously affected by the work, or in the value of any other land in which the claimant has an interest. This provision is in substitution of section 79 of the Public Works Act, 1928. Claims at present being considered will not be affected. The Minister of Public Works is authorised to carry , out drainage and reclamation works in connection with the Lake Ellesmere lands. The superannuation rights of twelve civil servants, who received payment for special services, are protected. Racing clubs which have been exv ; titled to deduct from the total duty 12£ per cent, of the total payment as commission, are, for the period from Ist August 1936 to 31st July 1937, to be entitled to deduct one-fifth of the total duty as commission. | The Bill validates payment to the New Zealand Returned Soldiers’ Association of portion of the proceeds of the sale of “Anzac” stamps.