FINANCE BILL

Nelson Evening Mail, Volume 76, 7 August 1941, Page 4

FINANCE BILL

POWERS FOR BORROWING WAR EXPENSES INTEREST ON COMPANY DEBENTURES (From Our Parliamentary Reporter) j Wellington. This Day. j Divided into four parts and containing forty-three clauses, a Finance Bill dealing with public ! revenues and loans, social security, local authorities and public bodies, and a number of miscellaneous matters was introduced to Parllaage last night. It was read a first Under the first part increased borrowing powers for war expenses expand the maximum from £40,00.000 to £80,000,000, and the Minister of Finjance is given authority to borrow an additional sum up to £1.000.000 for j electric-power works. Authority is I also given for an increase of borrowing j powers in respect of State coal mines, i the maximum of £380.000 being adj vanced to £510,000. Stock certificates for multiples of £5 may be issued instead of for multiples of £lO. Additional revenue is to be paid into ! the War Expenses Account. Threetwentythirds of the revenue received from incom: tax during the present 1 financial year is to go to this account, j Payment is authorised during the current financial year of additional subsidies from the Consolidated Fund not ' exceeding £200,C00 into the Public Service. Teachers’ and Railways’ Superannuation Funds. By Order-in-Council the Marketing Department may be authorised to make advances by way of loan in respect of goods that it has the right to purchase und the Marketing Act, where such advances are made the amount loaned will constitute part of the purchase price of the goods. Special provision is made for the payment of harbour dues that would be payable by private persons to be paid (out of the Housing Account, and this provision is to operate as from 30th August, 1940. the date of the passing ox the Housing Amendment Act. Travelling allowance receipts are exempted from stamp duty. The annual licence duty payable by agents of foreign insurance is increased from £2OO to £3OO, and the agent of two or more foreign insurers is to take out a separate licence for each agency. This is to come into operation on Ist January next. Where a contributor to any superannuation fund has elected to accept a reduced retiring allowance to enable an annuity to be paid after his death to his widow or other dependant the amount so set aside will be exempt from gift duty. | Authority is given to declare by Or ier-in-Council any allowances paid ;by the Railways or the Public Service i to be deemed to pay, but this will not apply to superannuitants who retired {before the passing oJ the act. Allowj ances expressly provided for in other ! Acts will not be affected. ! A clause provides for married traini ing college students to receive the (minimum rate of pay for married GovI ernment servants . This is to operate I from Ist October, 1940. Effect is given to a provision in the Budget increasing the rate of allowances to war veterans. The allowance for each child is increased from £l3 a (year to £26, the total a veteran, his j wife and family may receive is increased from £156 a year to £2OB, and (authority is given where special circumstances exist to increase this maximum to £234. SOCIAL SECURITY ACT AMENDMENTS Several amendments to the Social j Security Act provide for the increased benefits outlined in the Budget. The [allowance for wives and children of ! age beneficiaries is increased from 5s to 10s each per week, with a maximum (age benefit in any particular case of £4 10s weekly. The Commission’s authority Ito grant an additional £l3 in certain leases is increased to £26. Provision is j made for the family benefit to apply to (the first child instead of to the second 1 child and subsequent children. The (maximum rate of invalids’ benefits is ! increased from £2OB a year to £234. I and sickness benefits for children rise ; from 5s to 10s a week. All of these increases are to come jinto effect as from Ist September next. A minor amendment provides for j trustees paying social security charge and national security tax on income ( derived from trusts. i Another clause deals with the val- | uation of farmers’ live stock for income i tax purposes. j An adjustment is made in connection | with the payment of rates on properties 1 acquired by the Crown so that the (vendor is liable for the rates until i possession is taken by the Crown and | the Crown is liable for the balance of | the year. Provision is also made to (protect the Crown against liability for (rates on improvements made for war j purposes. j Provision is made for local authorities to invest money; at credit to loan i accounts in Government securities, j Borrowing by hospital boards during last financial year, and certain expenditure by fire boards are validated. ! Payment of part of wages to an emi ioyee of a local authority on service ! with the forces after the employee’s death is validated if the payment was made before notice of the death was I received. Other validating provisions I apply to the payment of Government subsidies for Centennial memorials in (anticipation of grants from local (authorities, expenditure by local authorities on farewelling Viscount and ! Lady Galway and welcoming Sir Cyril and Lady Newnll, and payments made by the Wellington Education Board in (connection with the billeting of chil--1 dren visiting the Centennial Exhibition. The right is taken by the Crown to remove buildings that have been erected by the State as residences for employees on land owned by co-operative dairy companies and farmers. Discussing the last clause in the Bill which makes provision for the reconstruction of certain companies that is. ued debentures in substitution for shares, Mr Nash referred to it as a lengthy, intricate and important one j relating to an Act passed last year j under which interest on debentures I issued by the companies was not deductable from the gross income before it became assessable income. The clause gave the companies affected the , right to reconstruct their companies 1 and transfer the debentures in certain i cases to shares but they had to get the consent of the Supreme Court for the particular proposal to be put before their shareholders and debenture hold- — |