LOAN AUTHORITY.

Pahiatua Herald, Volume XLIV, Issue 13382, 8 October 1936, Page 5

LOAN AUTHORITY.

FINANCING GOVT. SCHEMES.

SUM OF £13,000,000 INVOLVED

Electric Telegraph—Press Association WELLINGTON. Last Night.

Authority for borrowing £13,G00,000 for public works, mam highways construction and housing is contained in tbe second Finance Bill, which was introduced, in the House to-day. Under different sections the Minister of Finance Is empowered to borrow £6.000,000 for public works, £2,000,000 for highways and £5,000,000 for housin'... The interest rates are to be fixed by the Minister-

Regarding borrowing for public works. it is laid down that the money is to be expended on the construction of railways and additions to open lines, additional rolling stock, telegraph extension, construction and iinin evement of roads, tracks and bridges to provide and improve access to any lands, and the development of goldfields, construction of irrigation works, erection oi public buildings, including schools and other pubiic works, together with administrative charges.

In borrowing for the main highways: it is provided that the money may be used for the construction and re-construction operations only. A special provision regarding housing is that the sums borrowed must be paid into the Housing Account established under the State Advances Corporation Act It is provided that in the grant of a pension to a mother who lias the care of children but who is not entitled to the widow’s pension, the necessity for the father ox the children to be dead is to be modified. The pensions may be granted it tire father is detained in a mental hospital or if he has. failed to make adequate provision for the maintenance of the children. No pension is to be granted for children over 15 years ci age. In computing the amount of a miner’s pension or invalidity pension payable to a married man, no allowance is to be made for the wife tor any period during which she receives a pension Payment of pensions to women whose husbands <2re detained in mental hospitals is extended to cover the wives of men who are detained as voluntary boarders, in mental institutions.

fn the computation of an invalidity pension payable to a married woman, it is provided that the annual amount is to be diminished by £1 for every complete £1 of the total annual income of the applicant and her husband in excess of £lO4, and also by £1 for every complete £lO of the net capital value of their accumulated property computed as in the case of the application, for the old age pension. Power is given for local bodies to borrow without polls of ratepayers for public works subsidised from, the Employment Promotion Fund. A special order will be necessary eithei under the terms, of any existing Actor by resolution passed by the local authority concerned at a special meeting* Four weeks’ notice of the special meeting must be given with weekly announcements and the resolution embracing the special order must be confirmed at a subsequent meeting not sooner than 2B clays or iatcr than 48 clays after the c.ate ••£ the special meeting. However, at any time after the date of the special meeting and before the confirmation of the resolution a requisition maybe made by at least five per cent, of the ratepayers on the roll demanding a poll to be taken on the proposal *c raise the loan.

The Bill authorises Electric Power Boards to raise additional loan* for reticulation purposes without polls of ratepayers. The provision is confined to boards which have raised loans and levied special rate-, as security. As in the case of local authorities generally five per cent, of the ratepayers concerned may demand that a poll be taken. It is declared* unlawful for a local authority to pay interest on moneys borrowed to pay off an e xisting lean regarding the period intervening between fresh borrowing and re-pay-ment. This- authority is to have retrospective application. Borrowing by hospital boards by bank overdraft during the year ended March 31 last is validated if the amount has been approved by the Minister of Health. Expenditure by local authorities, regarding the death of King Chan ge and the- accession oi King Edward is also validated. I , addition to the powers of investment of moneys in the common fund of the Public Trust Office, authority is given for investment in bonds, stocks and other .securities of the State Advanc e-. C’orp nation oi by mortgage on such security and in mortgage advances on bonds, stocks debenture's or other securities issued by any Government local authority el- public body with the necessary proviso that it must be a lawful investment A mortgage advance ir. the latter class may be made up to nine-tenths of the nominal value- -if the security cm terms and *c editions to be determined by the Public Trustee. . , The margins for security ior 'certain classes cf investment by the Public Trustee are amended. In the case of real estate the margin has been cxteidecl from threc-fiftlTs to two-thirds. In local body debentures secured on rents and profits the return must be sufficient to pay onehall instead of twothirds more than the annual interest payable. Regarding the advance the margins for freehold and leasehold mortgages are extended fiom tlireefifths to twothirds.

Irregularities in the appointment of Mr Mark Silver stone, of Dunedin, to the directorate of the Reserve Bank are to he removed A clause .n the Bill validates his appointment and makes him eligible for re-ap-pointment. The section of the Reserve Bank Amendment Act passed early in the session enabling the' Bank to grant accommodation to the Treasury to the full amount cf revenue r.i estimated revenue is widened to apply to anv incorpornt* cl department cf the

State or to any local authoiity or public bodv. The provision in this year s amending Act authorising the Bank to underwrite Government Ivans is extended so that tile Bank may underwrite loans raised by the State Advances Corporation. Xunn-i'ous mi celbincous provisions dealing with the public lcwmies ami departmental matters are contained ill tile Bilk One clause makes •. temporarv amendment, to the Public Revenues Act by extending the annual appropriations by six months where necessary. The amendment will operate as from March 31, 193,. and will continue in operation until September 30. 1937. Another clause fiixes the remission of tota.hsator duty to racing clubs at one-fifth of the total amount, ot the duty par able between August 1 this year and July 31 next year. A variation ol the rates- of interest is authorised <ui loans secured by Government Life Insurance policies. The margin of security for investment ill real estate from the Government Insurance Account is extended from three-fifths to twothirds of the value of the security. A new basis is laid down ior the assessment of compensation for lands taken under tile Public \\ o-rks Act. It. is provided that the land should be assessed as nearly as possible at its current market value and the special suitability of land io-r Government. pm poses is. not to, lie. taken into considei'ati-on. It the value of the laud is likely to be increased bv any proposed public work, that factor also is not to enter into the question The relevant, section in the Public Works Act. 1923 is repealed, but all claims already lodged are to p:,acid in the ordinary way.