FINANCE BILL

Southland Times, Issue 22200, 18 December 1933, Page 7

FINANCE BILL

WIDE RANGE COVERED REGRADING OF CIVIL SERVANTS LOCAL BODIES’ POWERS (From Our Parliamentary Reporter.) Wellington, December 17.

Several provisions of interest to public servants are incorporated in the Finance Bill, read a first time in the House of Representatives on Saturday night. Authority is given for the postponement of the first general regrading of officers in the Public Service, Post and Telegraph Department and Hanways Department. The date on whic regrading will take place is to be fixe by Order-in-Council, and the same method will be employed to indicate the date on which respective regrading will t«ikc effect. Another provision lays it down that in adjusting payments . to superannuitants for work done in the Government service, the basis is to be a nominal salary on which contributions were made to the fund at the time of retirement. A fee of 10/6 is to accompany every appeal to the Government Railways Appeal Board, Public Service Appeal Board, and Post and Telegraph Board. If the appeal is successful, the sum will be refunded. If it is allowed in part, portion of the fee may be returned. Employees in the Samoan and Cook Islands service are to be eligible for appointment or transfer to New Zealand Public Service. Irrigation.

In future irrigation agreements for the supply of water to private property from Government irrigation schemes may be registered as charges against the whole of the land owned by the person entering into the agreement, even if the whole of the property is not irrigated. Authority for this action is contained in the Finance Bill which was introduced in the House on Saturday night. Another important proposal provides for moneys now payable or due in future for water for irrigation purposes to be not only a charge on the land but also on the stock grazing on the land and produce taken from the section and on proceeds of the sale of stock or produce. It is also proprosed to extend the charge on the land where it is held by lease or license to the interest of the lessor or licensor in any improvements to land and also to moneys payable by the leasor or licensor or incoming tenant for these improvements. These charges are to have priority over all existing or subsequent mortgages or other encumbrances, but if the land subject to irrigation charges is subject to charges created by any other Act, the irrigation charges are to rank equally with those authorized by the other Act unless the charge under the other Act would by virtue of that Act be deferred to the irrigation charge. Unpaid moneys due under the irrigation agreement may be reoffered from any person who purchases the stock or produce of irrigated land, while the Crown is also given the powers of mortgagee in respect to the recovery of moneys the Mortgagors and Tenants Relief Act of this year is not to apply to irrigation. Agreements’ fees for irrigation services are to be payable to the Crown whether the water is used or not, provided that the water is available in accordance with the agreement. The fact that the water cut off in accordance with the agreement or for any breach of it by the owner or occupier does not absolve the person responsible for the payment of irrigation moneys. Special provisions are contained in the Bill covering cases where water is supplied from irrigation schemes formining purposes. Virtually the same liabilities are to be imposed cn the holders of mining privileges as on owners of irrigated lands, with a proviso that in the case of partnerships or where the privilege is mortgaged there is no liability on the parties who have not consented to the agreement.

Earthquake Accident. The liability of employers for accidents due to earthquake is limited by a clause in the Finance Bill. It is provided by that measure that a personal injury suffered by a worker resulting in death or total or partial incapacity shall not be deemed to be personal injury by accident arising out of and in the course of his employment if (1) It results from a fall of any building structure or erection, or part or breaking the fall or movement of any of the contents ox- fixtures, and such fall breaking, or the movement is due directly or indirectly to earthquake and

(2) It is caused by fire, resulting directly or indirectly from earthquake, after a date to be fixed by Order-in-Council. The conditions of fire insurance policies are to be subject to approval of the Government. They will contain only such provisions as may be approved by the Governor-General. Marine insurance policies, covering loss by fire, are not affected. A fine of £lOO is the penalty prescribed for issue of any other fire insurance policy affected by the clause which does not conform to the requirements set out. Companies, who after the passing of the legislation, undertake for the first time a third party risk insurance, will be required to deposit with the Public Trustee £lO,OOO in cash. This is additional to the deposits required for ordinary insurance, and it will be held as security to meet liabilities under cover of third party insurance until the deposit of £lO,OOO is made. Companies cannot undertake this class of business. Rates of Wages. Periodical revival and extension at the instance of workers of orders made by the Arbitration Court fixing the minimum rate of wages for female workers is provided for. If orders have expired they may be revived and continued in operation for not less than six months or more than 12 months, and extended for a similar period. In cases where the orders have not expired a further provision enables renewals from time to time to be revised and extended or extended as the case may require. Orders made under this authority may vary the terms of the original order as the court thinks fit and define or re-define the classes of workers by reference to the nature of the work or industry or both. No orders under the new provisions are to be made, except on application of the Clerk of Awards at the request of the Workers’ Union representing females affected. Applications may be made one month before or three months after the expiry of the order. Compensation of Land.

Special prevision is made in compensation of land damaged as a result of the stoppage of the construction of Government railways. Under the existing legislation no new lines can be constructed or work on suspended undertakings be resumed without the resolved authority of Parliament and the Bill now before the House stipulates that where no proclamation has been issued for the taking of land affected the persons interested in the areas damaged or injuriously affected by the construction may claim compensation under the Public Works Act, provided application is lodged within one year

of the passing of new legislation. _lf the construction is proceeded with subsequently and the land concerned is taken, payment of compensation now provided for will be taken into account in assessing future re-imbursements. Financial Powers of Local Bodies. The extension of the financial powers of local bodies is proposed in the Bill. With the consent of the Government local bodies will be allowed to borrow by issue of stock in addition to debentures. When the funds are raised _in New Zealand the stock is to be inscribed in the books of the _ Reserve Bank of New Zealand. If the finance is provided overseas, the inscription is to be in the books of a bank or other corporation approved by the Government. The form of stock or other certificates . to be issued will be prescribed by regu- , lation but no claim for principal or . interest is to attach to the Government . or be paid out of public revenues. It is , also provided that if the proceeds, of the special rate levied over the portion ; of distribution is insufficient to meet , the charges on the special loan.. , it will be possible for a local body ax- . fected to meet the deficiency out of its < general account. Temporary applica-, tion of the general funds for the pur- | poses of a loan is not to debar a local j authority from raising that loan, the ■ proceeds of which to the extent required, may be utilized for reimbursement. The limit of repayment without prior consent of the Local Government Loans Board is fixed at two years from the date the general funds were temporarily applied. Power is given local authorities to advance moneys out of the general account for the execution of capital works for the benefit of defined portions of their districts. The cost of the works is to be debited to a separate account, and advances may be recouped by instalments. As the result of the levy of the annual recurring special works rate within the area, the proceeds are to be applied until the debit balance is extinguished. On the other hand the local body or bodies concerned have the option of extinguishing the whole or part of the debit balance by transfer from the general account. Power is given for the periodical increasing or diminishing of the special works rate so that the annual yield will be sufficient for the payment of interest and recoupment of the advance. If there is a surplus from the realization after - the liability has been satisfied, it may be applied to other works in the area. Liability is placed on drainage boards to prevent watercourses and. drains from becoming a nuisance or injurious i to health and to ensure their proper I clearing, cleansing and maintenance. ! Neglect of this requirement will make them liable to the owners or occupiers of the land for damage arising out ot disrepair. Relief Work. j The existing legislation authorizing I local bodies with the concurrence of the I Unemployment Board to spend money ■ on relief work on private property is extended to permit of interest to be charged on advances made by the board to the local authority. Few finance "washing up ’ Bills introduced into a New Zealand Parliament have attempted to cover such a wide and varied field of policy and administration as the measure which I was read a first time on Saturday night. Composed of 63 clauses, the Bill, deals with several issues which at any time would be accepted .as vital, and which, even in the closing hours of the session will have to run the gamut of contention and hostility. The subjects traversed include earthquake accidents, fire insurance policies, minimum wages rates of female workers, irrigation undertakings, financial authorities of local bodies, pensions, public service regradings, railway compensation, voluntary oversea conversion, petrol tax refunds, rebates, to racing clubs, third party risk deposits, and appropriations of building societAmong the provisions of a general character are the following: Change in the method of bringing the Reserve Bank into operation is outlined. . The Reserve Bank Act as passed earlier in the session, provides that six months after the issue of the proclamation by the Governor-General the Reserve Bank shall have the sole right of the issue of bank notes. The amendment provides that if at a date fixed in the proclamation 75 per cent, of the capital of the bank is not paid up the proclamation shall not have effect until the Minister of Finance has been notified that threequarters of the capital has been paid up. The date on which this is done will be regarded as the date of proclamation authorizing the issue of bank notes.

Totalisator Duty. The reduction of 10 per cent, in totalisator duty during the financial year ended on March 31, 1935, is authorized, this provision renewing a similar authority given last year. All subsidies payable to rabbit boards from the consolidated fund on the amount of rates received during the current year or future years are to be reduced by 10 per cent. The action of the Government last year in reducing pension allowances before the coming into force of the empowering legislation on May 10, 1932 is validated, the operation of authority being made retrospective to April 1 of that year.. Payments of travelling expenses to members of transport licensing authorities is validated. Authority is given for the payment by the Unemployment Board of travelling expenses and allowance of special committees set up by the board. Provision is made for the deduction of stamp duty paid on securities as a form of interest reduction from the return of income made for the purpose of assessing the wage tax.

Salary of Opposition Leader. Provision is made for the payment of an additional sum of £l6O annually to the Leader of the Opposition. This is the result of the opinion expressed on both sides of the House that the holder of this position should receive sufficient allowance to enable him to have secretarial assistance during the recess as well as during the session. The position now is that the Leader of the Opposition receives his ordinary honorarium of £364 and a further £284 a year for secretarial assistance. Changed conditions are laid down for the refund of the petrol tax on fuel used in agricultural tractors. The discretion the Minister had to grant, refunds less 10 per cent, if applications were made three months after the quarter’s end is removed and the Bill makes a full refund automatic if the claim is lodged within a month, and 10 per cent, reduction if the farmer waits two months after the end of the quarter before applying. In future registrations of buildings societies which provide for shareholders receiving appropriations by ballot will depend upon the production of the actuary’s certificate indicating that every member if his shares are properly paid up, has reasonable prospect of receiving appropriations within 30 years of the date of his admission to membership. Existing societies may be required by the Minister of Finance to produce such a certificate and if it is not furnished within a month the. Minister is to call upon the societies tc amend their rules within three months so that the requirement can be met Failing compliance with . that demand the societies will be terminated or dissolved forthwith. Voluntary Conversion. Authority for the Minister of Finance to consent to offers received from overseas bondholders to voluntary conversion of their stock to a lower rate

of interest is provided for. It is understood the object of the clause is tc meet the applications which have beer received from Australia. Conversion operation is limited to existing securities on which at March 31, 1933, the place of payment of interest and repayment of principal was beyond New Zealand. The Bill also authorizes the Minister to agree as from March 31 last to the conversion of any existing securities on such terms as to the interest dat<. or the dates of maturity of the premium or otherwise as may be mutually agreed upon between the Minister and the holder. The object of this clause is to enable the Minister to issue by arrangement the conversion of. stock with special maturity dates and in return for this concession to be empowered to pay interest at rates lower than 4 per cent for ordinary stock, or 3J per cent to tax free issues. The Minister is also authorized to pay premiums where the reduction in interest exceeds 20 per cent, but premiums are to be computed on the same basis as those granted under the terms of the main conversion operation. Authority is also given for the utilization of New Zealand Government stock issued in conversion of existing securities and available for payment of death duties to be used for that purpose, not withstanding the fact that existing securities did not have a condition of availability for this purpose attached. Tire rate of interest on loans made to the Samoan Treasury are to be reduced to 41 per cent, this only applying to loans made on or before March 31, 1933.