FINANCE BILL

Timaru Herald, Volume CLVIII, Issue 23258, 20 July 1945, Page 4

FINANCE BILL

Mr Nash Explains Its Provisions Debate Adjourned ' N.Z.P.A. • WELLINGTON. July 19. When the House met this evening, Mr W. J. Polson I ActingLeader of the Opposition! said that members of the Opposition hart not received their copies of the Finance Bill until after tea, and had not had time to study the measure, some of the clauses of which were far-reaching and intricate. The Minister’s explanation would he helpful but the Opposition would like further debate to be postponed. The Hon. W. Nash said the debate could go on to-morrow and Monday if necessary. He considered that after he had moved the second reading the debate could go on into the evening. The Speaker ithe Hon. F. W. Schramm > said he would see that the rights of minorities were observed and called on Mr Nash to speak. Mr Nash went through the Bill clause by clause in detail. Describing the clause authorising payments from accounts under the Marketing Act. he said this would enable the Marketing Department to reimburse certain payments made by the Government to stabilise the cost of production, processing and export of primary products. Referring to the clause dealing with the remuneration of public servants and teachers temporarily re-employed. Mr Nash said it met to a limited extent some of the representations made by public s-_ .wants. The clause provided that increases given to public servants should be given to re-employed servants without affecting their superannuation. Th" clause dealing with general imprest did not authorise any additional expenditure but made more money available to meet authorisations. Explaining the clause authorising and validating successive securities under the Local Bodies Loans Act, Mr Nash said the general practice was for a local authority to pledge a rate to cover the proposed loan. As a hospital board did not rate it had been suggested, if it pledged its assets, it had nothing else to pledge. Actually it had. because it could pledge its power to caii on the local authority to give it money for which the local authority had to levy a rate. Tire clause dealt with that position. Bulk Payments Mr Polson said that if stabilisation was to be applied in New Zealand it should be applied to every section and not only’ to farmers, upon whom the economy of the country depended. Britain had obtained the benefit by buying’ New Zealand produce at a low price and bulk payments were made in rec”".nition of those prices and were earned by the primary producers who

did not rec-'ive them. No other part of the Empire had received bulk payments, because other parts of the Empire had received higher prices tor primary products. One part of the community had earned money which had been taken to bolster up other sections of the community. If that policy were continued it would sell the farmers into slavery. Referring to ether parts of the Bill Mr Polson said it was apparent that the Minister of Finance believed he I i could spend the people's money better than they could spend it themselves, and was taking further powers to collect more from them. There were many clauses in the measure about which he had doubts. Mr C. M. Williams (Government, Kaiapol) said farmers had benefited as much as anyone else from stabilisation. Lump sum payments were made by Britain because New Zealand had kept down the cost of production by stabilisation measures paid for out of the general fund. Mr G. 11. Mackley (National, Masterton) said the Government would be the first to object if a private employer paid a superannuitant only £2OC because he was receiving £3OO superannuation. but that was just what the Government was doing. If a private employer tried it union officials would soon be after him. Mr T. H. McCombs (Government, Lyttelton) said the Bill went a long I way to remove an injustice to reI employed civil servants. It made the i payment of the increases retrospective : to the time when the increases were I made. Th lump sum referred to by j Mr Polson had been paid by Britain : to compensate the New Zealand Govi eminent for the subsidies paid t.o j farmers. The representatives of the , farmers had appreciated the position, : and that was why they signed the I agreement which the Opposition I members were trying to repudiate. [ The debate was adjourned and the ! House rose at 10.23 p.m. Summary of Contents j Authorl yis given for the payments from accounts established under the Marketing A; t, 1936, for the purposes of stabilisation. The relevant clause states that the Minister of Marketing may. in accordance with agreements entered into with representatives of the industry concerned, approve of contributions toward any expenditure incurred for the purpose of subsidising costs of production or the marketing of goods of a class in relation to which an account has been established, or for

the purpose of equalising, as far as possible, the nee returns received or payable for any such goods. Provision is 'made for the investment of public account cash balances in Government securities. Another clause increases the limits of the amounts that may be issued by way of general imprest for the pavment of interest on loans from £60,000 to £1.500,000. It also increases the total amount that ma.V be outstanding in the books of the Treasury i and Audit Office for general services I from £750.000 to £1.000.000. i The Bill i rovides that the general salaw increase is not to be taken into account in fixing the maximum re- | mimerat ion of retired public servants I and teachers temporarily re-employed. I Assistant Commissioners of Stamp I Duties are authorised to reduce or I remit penalties for the late presenta- . tion of documents for stamping. | Transfers of shares are to be chargeable with duty as deeds if ex-mpt from 1 conveyance and duty.

Local Body Loans A clause makes it, lawful f< r a local body to pledge any of its property as security for a special loan notwith- I standing that the property may have | been previouly pledged as security for any other loan. This authority is deemed to have always been lawful. Every security given that has been previously pledged shall i>e subject *o the prior security. Any consolidated or in w debentures, issued in lieu of caiiceHed debentures, shall have the same priori!v as cancelled debentures. The consent of the Local Government Loans Board is required for extensions of loans for more than one year. Local authorities are authorised to make grants to dependants of deceased emplovecs. Member; of the General Assembly are not to be disqualified because of iho receipt of remuneration as mcmber.s of (lie Licensing Commission. The final clause ir, the Bill provides that moneys owing by trading coinpunies and hearing interest are deemed to have been borrowed under