HIGHWAYS REVENUE.

New Zealand Herald, Volume LXIX, Issue 21175, 6 May 1932, Page 11

HIGHWAYS REVENUE.

RETENTION OF ,£500,000. HOSPITAL BOARDS' FINANCES. MISCELLANEOUS PROVISIONS. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON, Thursday. Numerous washing-up provisions have been included in the miscellaneous section of the Finance Bill. The retention in (he Consolidated Fund during the present financial year of a portion of tbo revenue from motor spirits taxation, otherwise payable into the Main Highways Revenue Fund, is the subject of one clause.

The National Expenditure Commission considered that by confining attention on main highways to essential maintenance only and stopping capital works, at least £500,000 from motor taxation could be made available to the Consolidated Fund during the present year. That recommendation had been adopted by the Government, but the legislation giving effect to it is definitely limited to the present financial year. Subsidies to Local Authorities.

The payment of subsidies to local authorities in respect of rates to be charged to the Main Highways -Account, instead of the Consolidated Fund, and for the payment of interest out of the Main Highways Account to the Consolidated Fund on moneys transferred to the Main Highways Account from the Public \Y oiks Fund was the basis cf legislation in 1930. Those provisions, which expired on August 31, 1931, were later extended bv one year, and they arc now indefinitely extended.

The time for making refunds for customs duty in respect of motor spirits used otherwise than in a motor vehicle lias been extended from one month to threo months, a s it was found that the early provision was too drastic. Such later refunds, however, are subject to the approval of the Minister of Finance atul also to a reduction of 10 per cent. Owing to declining revenue, many racing clubs arc experiencing serious financial .difficulties and the question has arisen as to the extent to which the State should forgo its receding revenue for the purpose of enabling such clubs to carry on.

I The Government's decision on the point I is embodied in a clause which reduces the totalisator tax for the current financial year from 5 per cent, to 4 per cent. As the dividends payable by racing clubs are computed on the gross takings of the totalisator, less 12£ per cent., the effect of the clause will be that the net amount retained by racing clubs will bo increased from 7 j to 8i per cent. Excess Overdrafts. Excess overdrafts by hospital boards are validated. It may be explained that boards are empowered to borrow in anticipation of revenue, but they cannot borrow for maintenance purposes beyond the amount of the local body levies and the, Government subsidies due for tlio year. If tho financial requirements for maintenance purposes arc under-estimated, there is no power to make a supplementary levy. Thus, when a board is faced with a deficit in respect of maintenance expenditure, its only recourse is to advances from the Treasury, such advances being deducted from the following year's subsidy. To meet unforeseen demands, chiefly on account of unemployment, numerous advances were made last year. but. even those provisions failed to meet requirements. It was accordingly necessary to provide temporary accommodation by increased overdraft on the understanding that validating legislation would be promoted. Had borrowing powers not been extended in that way, some hospital boards would have faced the necessity of ceasing to afford relief to the unemployed. Public Trust Deposits, The rate of interest on deposits in the, common fund of the Public Trust Office is to be fixed from time to time by the Minister of Finance. These deposits do not come within the scope of the National Expenditure Adjustment Bill, and it is therefore necessary to obtain authority in this bill to limit the rate of interest.

Alterations are made in conditions governing the payments of maternity bonuses under the National Provident Fund Act Last year the bonuses payable to future contributors or to future members of approved friendly societies were reduced from £6 to £4, and the maximum salary of persons to whom such payments would be made was reduced from £3OO to £270. It is now proposed to make tho £4 bonuses applicable to both present and future members, and to reduce the maximum salary provisions to £250.

The Local Authorities Relief of Unemployment Act, due to expire fin July 31, is once more extended for another year.

LAND DEVELOPMENT. COUNCIL PASSES MEASURE. [BY TELEGRAPH. —PRESS ASSOCIATION-] WELHNGTOX. Thurn!ny. The Land Laws Amendment Pill was considered by the Legislative Council to-day. During the second reading, the Hon. \V. 11. Mclntyre (Nelson) said lie did not see why it was necessary to spend money reclaiming land when there was plenty of land available in the Dominion.

Tlio Hon. J. P>. Gow (Auckland) said there wore- many tidal areas on which money could be expended profitably. Much of the land was in the vicinity of large areas of population. The bill was put through all stages and passed without amendment.