HAMILTON BOROUGH.

Waikato Times, Volume 113, Issue 18930, 27 April 1933, Page 9

HAMILTON BOROUGH.

RECENT LEGISLATION. FINANCIAL AND OTHER MEASURES. EFFECTS OUTLINED. “The National Adjustment Expenditure Act included a number of provisions directly affecting our finances,’ stated the town cleric’ (Mr W. L. Waddel) in a report received by the Borough Council last evening. “Owing to the difficulty of ascertaining the amount likely to be involved In exemptions and refunds it was not possible when our estimates were made to forecast with any degree of accuracy llie benefit to our finances from Hits measure. Indeed even today further exemptions are. being made and Hie final result will not fie accurately known until Hie last deductions are refunded about October or November. “Hart 111. of Ibis Act provided for a ‘fit per cent, reduction in llie, rate ot interest on mortgages, hire purchase agreements and rents subject lo carious conditions and limitations. This part of llie original Art did not materially affect the council,. but when on December 0 a section was Included which repealed the provision originally made that ground rents were not to he reduced to show a return of less than 5 per eeiil. on the unimproved value the council was involved in a

loss in revenue which may reach anything from £BOO to £IOOO per annum. The Finance Aot. “By the Finance Act, 1932, the definition of ‘company’ in the Unclaimed Moneys Act, 1908, was extended lo include local authorities, with the result that wc now have to keep a register of unclaimed moneys and pay to llie Minister of Finance all sums unclaimed within seven years of their becoming due. The Government last June received £1854 from us under this provision, the money representing interest which had been, and is, accruing due at Hie rate of ill ii per annum. Certain unclaimed gas and electricity deposits will also have to be paid over to the Government in future years. The unclaimed interest in the past has been I held in the general account so as to reduce the interest on bank over--1 draft. | “The rate or interest payable on moneys invested in the common fund of Hie Public Trust (Jlfice was, under I ils provisions, reduced lo 4 per rent. '• per annum, and rcenlly, as a result of llie Government's loan conversion ami llie operations of llie Lo-al Authorities Interest Reduction and Loan Conversion Ad, ad'ni'tlier rednelion lo 31 per cent, has been announced. A few years ago 5j per cent, was paid. The reductions affect our sinking funds, reserve and depreciation funds, all of which are Invested in the Public Trustee common , fund. The insurance fund is invested principally in local body debentures, llie interest on which last year was subject to the 10 per cent, stamp j duly and this year is reduced by 2u

per cent, under the Local Authorities Interest Reduction, etq., Act. Sinking Funds. 'The Local Authorities Sinking Fund Act, 1932, was placed In the Statute Book to prevent local bodies who were dissatisfied with the position from withdrawing their sinking funds from the Public Trust Office. The drops in the interest earnings and this particular enactment are of course the results of the legislation restricting the powers of mortI gagees, the reductions in rates of iuI tsrest and the unfortunate position of mortgagors generally, flue to the drop i in the price of our primary products. "The Urban Farm Lands Rating Act, 1932, is designed to provide a measure of rating relief to the owners of large blocks of land, used and only suitable for farming purposes, which happen to be within the boundaries of boroughs. Tlve definition of urban farm lands is such that I think it unlikely than any lands within the ' Borough are likely to he subject to the provisions of the Act. However, ■ llm matter is generally open to wide 1 differences of opinion ami 1 expect 1 will he Iho subject of finite a lot of argument before the courts in different parts of tin 1 country.