BIG BORROWING.

Wairarapa Age, 8 October 1936, Page 5

BIG BORROWING.

POWER TAKEN TO RAISE £13,000,000. PROVISIONS OF SECOND FINANCE BILL. CHANGES IN PENSIONS LAW. (By Telegraph—“ The Age" Special.) WELLINGTON, October 7. In the second Finance Bill this session, introduced in the House of Representatives to-day, authority is given to borrow six millions for public works, two millions for the construction or reconstruction of main highways and five millions for housing. These loans are to bear interest “at the rate which the Minister of Finance prescribes. 0 Racing clubs which have been entitled to deduct from the totalisator duty 12$ per cent, of the total payment as commission, are for the period from August 1, 1936 till July 31, 1937 to be entitled to deduct one fifth of the total duty as commissionAn amendment of the Pensions Act forecasted by the Minister of Pensions is included in this measure, in which the widows’ pension is payable in respect to the mother of any child under 15 years if the husband is subject to a reception order under the Mental Defectives Act or is a voluntary boarder in a mental hospital. Another pensions modification relates to the computation of miners’ and invalidity pensions to married men, who will, states a new clause, not be entitled to an allowance in respect of a wife if the latter is in receipt of an old age pension. Deserted wives are also to become entitled to the same pension as widows with children under the age of 15. Another clause defines the method of computing the invalidity pension of a married woman. It will be diminished by £1 for every complete £1 of the total income of the applicant and her husband in excess of £lO4 and by £1 for every complete £lO of net capital value of the accumulated property of the applicant and her husband.

The appointment of Mr. Mark Silverstone, of Dunedin, as a director of the Reserve Bank is validated, notwithstanding the provision in the original Act that only persons British born may hold office. The Reserve Bank is the subject of several other clauses which empower it to underwrite securities of the State Advances Corporation and to make advances, not only to the Treasury, but to any Department of State, local authority or public body. Of the clauses affecting local authorities, the most important is that giving power to borrow without taking a poll of ratepayers where money is required for the relief of unemployment and is subsidised from the Employment Promotion Fund. This is safeguarded by the provision that the intention to raise the loan is to be advertised and if five per cent, of the ratepayers demand a poll, it shall be taken. Electric power boards are similarly authorised to raise loans to extend reticulation, with the same safeguard as in the previous case.