THE FINANCE BILL.

Otago Witness, Issue 3251, 5 July 1916, Page 27

THE FINANCE BILL.

PROVISION FOR TAXATION,

LOAN PROPOSALS.

WELLINGTON-, July 3,

The Finance Bill was introduced by Governor's message in the House of. Representatives this evening.

The first part of tho Bill deals with tho ordinary income tax levied every year, and is, in fact, the annual taxing Bill, with the addition that provision is made lor a 5 per cent, tax in respect of all assessable incomes over £3OO Tart 2 deals with the assessment of excess profits duty. Part 3 gives the Minister of Finance authority tor raising a £12,000,000 loan. This money, or any portion of it, may bo raised on the security of Treasury bills, or may be raised by tho Minister of Finance by agreement with tho Treasury of the Imperial Government without formal security or on such security as may be agreed on. All moneys raised under this section are to be placed to the credit of the war expenses account, established under " The Public Revenues Amendment Act, 1914."

The limit fixed by "The Public -Revenues Act; 1910," as to the total amount that may bo outstanding at any time in respect of Treasury bills shall not apply to Treasury bills issmd for war purposes. Power is given for the renewal of Treasury bills from time to time by endorsement by the Minister of Finance or the High Commissioner. A clause is inserted to enable the Minister of finance to raise money or renew loans at rates of interest in excess of those stipulated in the authorising Act. This is made retrospective, the reason being that, owing to the conversion proposals brought down from time to time by the Imperial Government, the Minister is never quite certain as to the rate of interest which. New Zealand is actually paying for money which has been borrowed. The rates may at any time fluctuate and may exceed the limits provided in the authorising Act. It is also provided that where power is given undqr any Act to purchase land for the use of the Crown, the Minister of Finance, on agreement with the vendor, may issue debentures for the payment of the same in lieu of cash, and where under any Act power is given to acquire land compulsorily for the Crown's _ use the compensation payable or any portion of it may, at the opinion of the Minister of Finance, be paid in debentures, and any person entitled to such compensation shall be obliged to accept such debentures in lieu of cash. Debentures will bear interest at a rate not exceeding 5 per cent. Part 4 deals with banking and loans. It is provided that, notwithstanding anything in the Banking Act or in the charter of any bank carrying on business in New Zealand, the Governor-in-Council may from time to time make certain regulations, including the suspension, altering, or variation of the terms, conditions, or restrictions relating to the issue of notes by any bank and the making of such notes legal in New Zealand.

Regulations amy also be made for altering the amount of the rcservo_ of coin, bullion, and public securities provided to be held in New Zealand by any bank against the debts, engagements, and liabilities of such bank, and for providing that bank notes of the denomination of 10s may be lawfully issued in New Zealand. In this part of the Bill the Governor-in-Council is given power to make regulations regulating the rate of interest that many be paid on moneys invested in New Zealand by way of fixed deposit or by mortgage. In part 5 of the Bill the Minister of Finance is empowered to raise £1,000,000 bearing interest at a rate not exceeding 4£ per cent., such money to be paid into the public works fund, to bo used for public works.

Part o provides that no stamp duty shall be payable on any power of attorney executed by any person who is a member of the Expeditionary Force. Part 7 deals with the Public Trust Office. It is provided that where tho estate of a deceased member of the ' Expeditionary Force under administration by the Public Trustee is of less value than £IOO it may be distributed or conveyed and dealt with without the prescribed notices being given, as laid down in the Public Trust Act. Provision is also made that where tho net profits of tho Public Trust Offices in any year exceed £20,000, tho Governor-in Cotncil may direct that such profits or any part of them be credited pro rata as a bonus to such estate or account in tho office.

Part 8 provides that when money is deposited in the Post Office Savings Bank for a fixed term the Postmaster-general may permit withdrawals before the termination of the term. The rate of interest on money 60 withdrawn is not to exceed 3 per cent. This clause is designed to allow of the temporary investment of patriotic funds The proposals under part 9 of tho Bill represent a very important step concerningthe relations between tho State and tho friendly societies, and are designed to strong-then tho efforts of both tho friendly societies and the National Provident Fund. The section in the Bill is drawn up to give effect to the coi-clusions which were reached at ths conference in April last between representatives of the societies and the Minister. The benefits -will bo administrated by tho societies throughout the National Provident Fund Board, and are as follow:—(1) Tho payment of £4 in respect of all members on the birth of a child; (2) an annuity allowance of 10s at the age- of 60 'years for tho friendly societies' members at half the rates in tho original Act. An increased pension of 20s, 303, and 40s may .also bo obtained. at reduced rates as set out in tho schedule t.i the Bill. Those benefits apply to present as well as future members. The maternity payment -will be, subject, g-enerally speaking-, to tho conditions that apply to contributors in tho National Provident Fund. Members will require to bo 12 months in their eociety before becoming

entitled to the benefit, and their income must not exceed £2Ol per annum for the year preceding the birth. The maternity payment is to be regarded as the benefit of the mother, and shall bo payable only to her or to her husband, if she authorises him to receive it. The annuity benefit is optional on the part of members, and may bo taken up by all present or future members on payment of the contribution, which is set out on the schedule attached to the Bill. The contributions for this purpose cease at the ajre of 60 years, and at that ago the society would transfer to the National Provident Fund from its sick fund 00. behalf of that member a sum that Will be actuarially fixed by regulations under the Act. From the age of 60 years onwards a member will thus receivo a permanent allowance of 10s per week, and the society will bo released of future liability for sickness benefit on account of that member. The 10s benefit for life from the age of 60 years is a greater benefit than tho present payment on sickness only, so that the members receive an advance through this scheme, and the society is likewise from one of tho principal difficulties experienced in friendly societies —the payment of old-age sickness. Tho provisions in tho case of the death of a member are also of interest to friendly societies. The refund of the contributions by the National Provident Fund will mean an addition to the funeral benefit payable in respect of the member to his family, and the refund of the amount payable by the society at the age of 60 years is also a valuable addition to the funeral insurance of members in favour of their families. The schemes of accounts as between the National Provident Fund Board and the societies will be set out by regulations, which also provide for the administrative details in full. The scheme will come into operation as from January 1, 1917.