FINANCE BILL

Taranaki Daily News, 18 December 1933, Page 5

FINANCE BILL

IMPORTANT PROVISIONS

FIRE INSURANCE POLICIES

DOAN CONVERSION POWERS

rating for irrigation

RESERVE BANK OPERATION

By Telegraph—Press Association. Wellington, Last Night. There are 63 clauses in the Finance Bill (No. 2), which was introduced in the House of Representatives yesterday. The most important provisions are:— Validation of the action of the Government last year in reducing pensions allowances before the empowering legislation came into force on May 10, 1932. The Bill makes the operation of the authority retrospective to April 1 of that year. A reduction of 10 per cent, in the totalisator duty during the financial year ending on March 31, 1935, and renewing similar authority given last year. Limitation of the liability of employers, for accidents due to earthquakes when the accidents are caused by the fall of any building, etc., or by fire resulting directly or indirectly from an earthquake. An increase in the honorarium payable to the Leader of the Opposition in the House of Representatives by £l6O per annum, bringing it to £504. Authority for county councils to purchase sodium chlorate in bulk and sell it or distribute it free for the destruction of noxious weeds in their areas. Periodical revival and extension at the instance of the workers of orders made by the Arbitration Court fixing the minimum rate of wages for female workers. Provision for the conditions of fire insurance policies to be subject to the approval of the Government. They will contain only such provisions as are authorised by the Govemor-General-in-x Council. Marine insurance policies covering loss by fire are not affected. •SUPERANNUATION PAYMENTS. Another provision lays it down that in adjusting payments to superannitants for work done in Government service the basis is to be the nominal salary on

which contributions were made to th« fund at the time of retirement. Employees in the Samoan and Cool, Islaiids service are to be eligible foi apointment or transfer to the New Zealand Public Service. With the consent of the Govemmeni ' local bodies will be allowed to borrow by the issue of stock in addition to debentures. It is also provided that if ths proceeds of a special rate levied ovei a portion of a district are insufficient tc meet the charges on a special loan ii will be possible for the local body affected to meet the deficiency out of the general account. Temporary application of the general funds for the purposes oi a loan is not to debar the local authority from raising that loan, the proceeds of which (to the extent required) may be utilised for reimbursement. 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. Liability is placed on drainage boards to prevent water-courses and drains from becoming a nuisance or injurious to health and to ensure their proper clearing, cleansing and maintenance. Neglect of this requirement will make them liable to the owners or occupiers of the land for damage arising out of disrepair. In future registrations of building societies which provide for shareholder; receiving appropriations by ballot will depend upon the production of an actuary’s certificate indicating that every member if his shares are properly paid has a reasonable prospect of receiving appropriations within 30 years of his admission to membership. Existing societie; may be required by the Minister oi Finance to produce such a certificate.

THIRD PARTY RISKS. Companies which after the passing of the legislation undertake for the first time 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. Authority for the Minister of Finance to consent to offers received from overseas bondholders for the voluntary conversion of their stock to a lower rate of interest is provided in the Bill. It is understood the object of the clause is to meet applications which have been received from Australia. The 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 authorises the Minister to agree as from March 31 last to the conversion of any existing securities on such terms as to interest, date or dates of maturity, 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 conversion 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, for tax-free issues. Authority is also given for the payment of 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 internal conversion operation. Authority is also given for the utilisation of New Zealand Government stock issued in the conversion of existing securities and available for the payment of death duties, to be used for that purpose notwithstanding the fact that the existing securities did not have the condition of availability for this purpose attached. LOANS TO SAMOA. The rate of interest on loans made to the Samoan Treasury is to be reduced to 4i per cent., this applying only to loans made on or before March 31, 1933. 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. Another important proposal provides for moneys now payable or due in the future for water for irrigation purposes to be a charge on the land, on stock grazing on the land, on produce taken from the section and on the proceeds of the sale of stock or produce. These charges are to have priority over all existing or subsequent mortgages or other encumbrances. Unpaid moneys due under an irrigation agreement may be recovered from.. any person who purchases, stock or produce of irrigated land, while the Crown is also given 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. Special provisions are contained in the

Bill covering cases where water is supplied from irrigation schemes for mining purposes. Virtually, the same liabilities are to be imposed on the holders of mining privileges as on the owners of irrigated land, with the proviso that in the case of partnerships or where the privilege is mortgaged there is- no liability on parties who have not consented to the agreement .... A change in the method of bringing the Reserve Bank of New Zealand into operation is contained in the Bill. The reserve Bank Act provided that six months after the issue of the proclamation by the Governor-General the Reserve Bank should have the sole right of issue of bank notes. The amendment provides that if at the date fixed in the proclamation 75 per cent, of the capital of the bank is not paid the proclamation shall not have effect until the Minister of Finance has been notified that three-quarters of the capital is paid. The date on which this is done will be regarded as the date of the proclamation authorising the issue of bank notes. Changed conditions for the refund of petrol tax on fuel used in agricultural tractors are laid down in the Bill. In stead of it being necessary to make application for a refund within a month of the end of a quarter the right to lodge application is available for two months from that time. If application is made in the second month, however, the amount of the refund is to be reduced, by 10 per cent. 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.

Payment of travelling expenses to members of transport licensing authorities is validated.

Authority is given for the postponement of the first general regrading of officers in the Public Service, the Post and Telegraph Department and the Railways Department. The date on which regrading will take place is to be fixed by Ordef-ih-Council, and the same method will be employed to indicate the date on which the respective regradings will take effect.

Authority is given for the payment by the Unemployment Board of the travelling expenses and allowances of special committees set up by the board. Provision is made for a deduction of stamp duty paid on securities as a form of interest reduction from the return of income made for the purpose of assessing wages tax. Existing legislation authorising local bodies, with the concurrence of the 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 a local authority.

Special provision is made for compensation for land damaged as the result of the stoppage of the construction of Government railways. Where no proclamation has been issued for the taking of the land affected 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 a year of the passing of the new legislation.