HEAVY BORROWING

New Zealand Herald, Volume LXXV, Issue 23139, 10 September 1938, Page 14

HEAVY BORROWING

GOVERNMENT'S POWER AUTHORITY FOR £14,500,000 PUBLIC WORKS AND HIGHWAYS £4,000,000 FOR HOUSING [nV TELEGRAPH —SPECIAL REPORTER] WELLINGTON. Friday Borrowing authority to the extent of £1'1.500,000 is conferred on the Government by tho Finance Bill which was introduced in the House of Representatives to-day by Governor-General's Message. These empowering provisions are contained in a section of the bill dealing with public revenues and loans and are in keeping with loan announcements made in this year's Budget.

The largest individual item in the loan section is one of £8,000,000. The Minister of Finance is empowered to borrow this amount, to be paid to the general purposes account of tho Public Works Fund and. to bo used for the following purposes: —Construction of railways and additions to open lines, provision of additional rolling stock, telegraph extension, construction and improvement of roads, tracks and bridges, improvement of access and development of goldfields, construction of irrigation works, erection of public buildings, including schools, and other public works, including administrative charges. The Minister is also empowered to borrow £1,500,000 for the construction of main highways, £4,000,000 for tho purposes of the Housing Act and an additional £1,000,000 for forestry purposes. In all these cases it is provided that tho sums borrowed will bear interest at rates -prescribed by tho Minister, while in each instance the borrowing authority given is in the nature of a maximum limit.

Tho borrowing powers in respect of State eo:il mines are extended from £330.000 to £380.000.

Another financial provision in the bill authorises the payment of additional subsidies from the Consolidated Fund into tho various superannuation funds, the maximum additional amount being given as £200,000.