AUTHORITY FOR BORROWING

Southland Times, Issue 23610, 10 September 1938, Page 8

AUTHORITY FOR BORROWING

LIMIT OF £14,500,000 PROVIDED AMOUNT OF £8,000,000 FOR PUBLIC WORKS

(From Our Parliamentary Reporter) WELLINGTON, September 9.

borrowing authority to the extent of £14,500,000 is conferred on the Government by the Finance Bill, which was introduced in the House of Representatives today by Governor-General’s Message. These empowering provisions are contained in the. section of the Bill dealing with public revenues and loans and are in line with the forecast of borrowing 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 Purpose Account of the Public Works Fund and to be used for the following purposes:— , The construction of railways and additions to open lines. The provision of additional rolling stock.

Telegraph extension. The construction and improvement of roads, tracks and bridges. Improvement of access and development of goldfields. The construction of irrigation works. The 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 the purpose of the Housing Act and an additional £1,000,000 for forestry purposes. In all these cases it is provided that the sums borrowed will bear ipterest at rates prescribed by the Minister, and in each instance the borrowing authority given is in the nature of a maximum limit.

Borrowing powers for the State coal mines are extended from £330,000 to £380,000. Another financial provision in the Bill authorizes the payment of additional subsidies from the Consolidated Fund into the various superannuation funds, the maximum additional amount being given as £200,000.