FINANCE BILL

Timaru Herald, Volume CXXXVII, Issue 19666, 7 December 1933, Page 7

FINANCE BILL

FURTHER PROVISIONS LARGER LEVY FOR WHEAT RESEARCH By Telegraph—Press Association WELLINGTON, December 6. An Interesting provision in the Finance Bill, introduced in the House of Representatives last night, is one making lawful expenditure out of the public account for the protection, preservation, and improvement of property, on the security of which public funds are invested. This authority may be exercised notwithstanding the prior exercise respecting the mortgaged property of any power of sale, or of entry into possession. It is to extend to expenditure on the stocking and cultivation of land, whether freehold or leasehold, employment of labour, making of advances to mortgagor, the carrying on of farming, and other purposes calculated to prevent or minimise loss of realisation of the securities. By Order-in-Council power can be taken to extend the provision to the expenditure of public moneys for the same purposes from funds outside the public account. Authority is given for the exclusion of exchange in the compilation of overseas’ passenger duty. Provision is contained that there shall be no appeal from the decisions of Judges or Stipendiary Magistrates in respect of orders made under the National Expenditure Adjustment Act, concerning applications for relief by mortgagors, on the ground of undue hardship. The application of the interest reduction provisions of the National Expenditure Act is extended to cover payments on table mortgages.

A new section providing that where there was a statutory reduction of interest in such cases, then the amount of each instalment of principal and interest payable after the date of the reduction shall be reduced by an amount equal to the amount by which the interest included in such instalment has been reduced. Provision is made for the apportionment of rent of furnished premises under contracts, affected by the interest reduction provision.

Where part of the rent reserved is payable in respect to furniture or other chattels, an apportionment between chattels and other property is to be made by the Magistrate, in default of agreement between the parties. The original powers of the Supreme Court to reduce annuities or other periodic payments derived from rent or interest are extended to take into account reductions in income caused by the Debt Conversion Act. Wheat Products. The extension for five years of the scheme for the scientific investigation of matters pertaining to wheat, flour, and bread, is provided for in the Finance Bill, which also increases by Id the amount of levies payable to the Wheat Research Institute by wheat producers and flourmiller*, and those taking delivery from mills. The present levy is lid for every 50 bushels of wheat a producer delivers to a flour miller or grain merchant. For every ton of flour or wheatmeal a miller delivers from a flour mill, and for every ton of flour or wheatmeal taken delivery of by the other person from a flour mill in future, the levy will be 2£d. The restoration of the original State subsidy to the National Provident Fund Is also proposed in the Bill. The legislation in 1931 provided that the amount which the Minister of Finance should pay into the National Provident Fund annually should be equivalent to one-fifth of the total contributions paid into the Fund during the year ended December 31.

The original subsidy was on a basis of one-fourth of the total contributions, and this will be restored by repealing the 1931 legislation as from April, 1933. Important alterations governing the advances made by the State Advances Department to settlers on chattel securities are contained in the Bill. The existing legislation required Interest at the rate of 7 per cent, to be charged, less h per cent, for prompt payment, and that at the end of four years after the granting of the advance not more than 30 per cent, remains to be paid back by the borrower. The proposals now before Parliament provide for fixing the rate of interest by the Governor-General, and that repayment shall be upon demand, or in such instalments as the State Advances Board may determine. It is also proposed that the amount of any loan may be made available by progress payments, and all moneys repaid on loan or received from the sale of stock or chattels in security may be readvanced to the mortgagor to enable the latter to carry on farming business. or for any other purpose the State Advances Superintendent considers necessary. It is expressly stated that there is to be no limit to the power of the State Advances Poard or the Superintendent to grant an extension of time or any other concession to any mortgagor in respect to any loan granted under this system.