RESTORATION FUND.

Timaru Herald, Volume CXXXIV, Issue 18823, 11 March 1931, Page 3

RESTORATION FUND.

GOYEBMENT’S PROPOSALS OUTLINED. SURTAX ON INSURANCE. By Telegraph—Press Association WELLINGTON, March 10. In an interview given to the “Dominion,” the Prime Minister outlined proposals for financing rehabilitation of the earthquake area. Legislative authority for the proposals will be sought during the special session. The sum of £1,500,000 is to be made available for private and local body needs. Of this £1,250,000 will be devoted to giving sslstance by ways of grants or loans to persons or firms for reconstruction of buildings destroyed or damaged. The remaining £250,000 will be available by way of loans to local authorities for restoration of essential services.

The reserve fund held in London by New Zealand will be utilised temporarily. The fund is largely invested in securities of the British Government, and it is proposed to realise these to the extent of a million and a half.

In order to reinstate the fund, the Government proposes to levy a surtax of eighteenpence per cent, on the value of all insurable property in the Dominion. The levy will be made on all insurance companies doing business in the Dominion, on a basis of insurances effected. In respect of those who carry their own risks, provision will be made for collection of the tax on the insurable value of the property. Local authorities will be exempt from principal and interest payments for the first five years, after which the loan will be repayable over a period of 30 years at 4 per cent.

It is proposed that the proceeds of the surtax should be used first in recouping the revenue lost through the sale of £1,500,000 investments; secondly, in reinstating the reserve fund.

The Prime Minister said that it was recognised that the amount it was possible to provide now was insufficient for full restoration. The Government would have to make provision for additional finance in connection with the earthquake im »ext year’s ordinary loan programme, which was now being prepared. It was proposed that a committee be set up to investigate applications for assistance. Final decision will rest with the Minister of Finance. The aim will be to assist those who are unable to help themselves. To aid everybody up to a hundred per cent, loss was beyond the resources of the Government. The advances will be a first charge on all property. It is intended to make the surtax a permanent charge, in order to build up a fund for use in any future national disaster. “The Government proposes,” said Mr Forbes, "to appoint adjustment commissioners, authorised to prevent any person taking steps to foreclose on a debtor pending full inquiry by the Commissioners.