FINANCE BILL

Timaru Herald, Volume CXXXVII, Issue 19678, 21 December 1933, Page 7

FINANCE BILL

TOBACCO PRICES TO BE REGULATED EARTHQUAKE RISKS LIMITED By Telegraph—Press Association WELLINGTON, December 20. Effect to the report of the Industries and Commerce Committee of the House of Representatives on the subject of tobacco trading is given by a proposed new clause in the Finance Bill (No. 2) introduced this morning. The clause removes tobacco (including cigars and cigarettes) from the schedule of the Commercial Trusts Act. This ■will enable price fixation. Personal Injuries to Workers. Another important amendment is in terms of the announcement Mr Coates made last night on the subject of earthquake risks in connection with workers’ compensation. It is set out that the maximum liability of all the insurance companies shall not exceed £50,000 in respect of personal injuries to workers resulting from a single earthquake or a series of earthquakes occurring within a period of seven days. Where the total liability exceeds £50,000 each company’s share of the liability is to be apportioned by the Governor-General-in-Council in proportion to their premium income for the preceding calendar year in respect of their employers’ liability insurance business. If any company was not carrying on such business in the preceding year, its proportion of the liability is to be determined by the Governor-General-in-Council in such a manner as he thinks proper. The amounts to be paid to those entitled to compensation are to bear the same proportion to the full amount of their claim as the sum of £50,000 bears to the aggregate amount of all valid claims. Interest Payments. A new clause has been added to facilitate a settlement between the Government and the Southland Power Board regarding interest payments in London. This clause will empower the Board to borrow money in London to meet the difference between the amount payable in sterling and in New Zealand currency on its overseas loans, and repay that sum out of the sinking fund. A clause in the Finance Act, 1928, empowered the Governor-Gener-al by Order-in-Council to authorise the Power Board to borrow money to meet charges on a loan that was guaranteed by the Government. A clause introduced to-day provides that the money so borrowed may be repaid out of sums standing to the credit of the sinking fund of the loan on which the money was borrowed. Measure Passed. In committee on the Bill, Labour members called for a division on the clause validating pension reductions, as from April 1, 1932, but it was retained by 34 votes to 27. Mr Savage asked regarding the clause removing tobacco from the schedule of the Commercial Trusts Act, whether the Minister would give an assurance that the public would De protected from exploitation in the direction of price fixation at too high a level. Mr Coates said if prices rose to an unreasonable level, the Government would not hesitate to invoke the Board of Trade Act, with a view to protecting the public. A division was taken on the clause relating to the payment of interest In sterling on local bodies loans raised in London. The clause was retained by 35 votes to 22 and the Bill was put through its remaining stages and passe