THE FINANCE BILL

Timaru Herald, Volume CXXXVII, Issue 19360, 8 December 1932, Page 8

THE FINANCE BILL

MAIN PROVISIONS OUTLINED. By Telegraph—Press Association WELLINGTON, December 7. A Finance Bill was introduced in the House of Representatives to-day by Governor-General’s message. Grant to Superannuation Funds. Provision for an increased subsidy to the Public Service Superannuation P’und is made in- the Bill. Provision has already been made in the Estimates for a payment of £86,000 from the Consolidated Fund, and legislative effect is given to this in the Bill. For the purpose of protecting securities in which its funds are invested, the Government Superannuation Funds Boards are empowered to expend money for the purpose of stocking and cultivating mortgaged lands, employing labour on them, making advances to mortgagors, and carrying on farming business. In the event of any contributor to any Government superannuation fund being convicted on a charge of theft or misappropriation of public moneys or stores, the Minister of Finance may order that restitution in whole or part must be made out of the amount standing to the credit of the contributor in the fund, or that the money shall be applied toward the maintenance of the w r ife and children of the contributor, or towards the maintenance of any other person for whose benefit a maintenance order under the Destitute Persons Act could be made. Recovery of Relief Funds. The Bill gives legislative authority for the creation of a debt by local bodies financed in certain relief works by the Unemployment Board. At present, the Minister of Fublic Works is empowered to carry out certain works of a reproductive character on or for the benefit of privately owned property, or any other property. In such cases the local authority controlling the district is prepared to assist the Unemployment Board by refunding to it a proportionate part of the cost of such works, but there is no provision in existing legislation for the cost to be spread over a period of years. Provision is now made w-hereby the amount so expended may be treated as a debt due to the Crown, and repaid over a period of years. Under the present law. if a local body improves privately-owned land by means of relief work, it may only recover the amount expended out of its own funds for this purpose. Another clause in the Bill extends local bodies’ powers of recovery, so that money advanced by the Unemployment Board for the same purpose may be included.

Chathams Excluded From Wages Tax. By another clause, residents of the Chatham Islands are excluded from the operations of the Unemployment Act. Expenses Validated. Authority for payment expenses incurred by Messrs Smith and Ansell in a tour of New Zealand, investigating the juvenile unemployment problem, is given in a further clause. Payments made to Mrs S. Macdonald, Mrs H. Wilson and Miss Blanche Carnahan, members of the Women’s Committee which investigated female unemployment, are also validated. Building Society Deposits. Strict limitations upon the rights of building societies to accept moneys on deposit, thus engaging in the business normally done by Savings Banks, are imposed by the Bill. It is not intended to debar societies at present operating in this direction from carrying on in the past, but the clause in the Bill aims at restricting any other societies from undertaking this class of business. At the same time, a limit is set on the amount of deposit business that can be don#» by societies operating at present. This limit has been fixed at the amount of paid-up capital or at £200.000, whichever is the lower. Provision is also made that building societies carrying on savings bank business must keep ten per Cent of their deposits in liquid assets as a safeguard, on similar lines to that operating in respect of trustees of savings banks. Another clause provides for statutory authority for savings banks to invest their surplus funds in the Post Office Savings Bank, Trustees Savings Banks, or trading banks. Previously they could invest only with trading banks. Sinking Funds. Various provisions relating to Government and local body transactions are embodied in the Bill. In accordance with a statement made by the Prime Minister at Stratford on November 7th, legislative effect is given to local authorities to carry forward sinking funds to redemption loans. To obviate substantial loss of sinking fund moneys in remission of these moneys to London, it is proposed to authorise local bodies to raise the full amount of a maturing loan by way of renewal loan, and to carry forward the existing sinking fund as the nucleus of a sinking fund for the renewal loan.

Penalty on Unpaid Rates. Provision was made last year for local bodies to remit the ten per cent penalty on unpaid rates for the financial year ended March 31st. It has since been found that those local bodies whose rating year does not end on March 31st cannot take advantage of the legislation. A clause extends the operation of the legislation to include all local authorities irrespective of whether their rating year ends on March 31st or not. Relief in Royalties. The provision in the Mortgagors and Tenant’s Further Relief Act of this i session, enabling Courts to reduce j royalties under coal mining licenses, is i made binding on the Crown by another clause. Extension of power under the same Act enabling the Courts to grant relief from payment of high royalties by holders of licenses to cut timber or flax, or to extract coal, is contained in another clause, under which relief may be granted to licensees from payment of large sums in royalties to persons other than owners of the land affected. Totalisator Tax. The rebate of 1 per cent made under legislation of last session on totalisator tax is to be continued for another year, thus making it applicable to the financial year ending March 31st, 1934. Consolidated Fund Transfers. The limit of £550.000 which could be transferred from the Reserve Fund to the Consolidated Fund is removed. Under another clause, if there is an excess after all commitments relating to the Hawke’s Bay earthquake have 1 been met, this amount may be trans- 1 ferred to the Consolidated Fund.