H.—26.

2. State Subsidy. —Section 16, Finance Act, 1932 (No. 2), makes provision for an increased subsidy to the fund. . , For the year ending the thirty-first day of March, nineteen hundred and thirty-three, all sums which if this section had not been passed would have been payable into the Consolidated Fund, pursuant to section twenty of the Finance Act, 1927 (No. 2), shall, without further authority than this section, be paid into the Public Service Superannuation Fund. (See Revenue Account.) 3. Investments of the Fund.—Section 17, Finance Act, 1932 (No. 2), makes provision for the Board to expend moneys to protect securities. (1) Every Government Superannuation Fund Board is hereby authorized to expend out of any moneys belonging to it such sums as it may from time to time consider necessaiy for the protection of the securities in which its funds are invested, and to that end ni. i\ expend moneys for the purposes of the stocking and cultivating of mortgaged lands, the employment of labour thereon, the making of advances to mortgagors, and the carrying-on of farming businesses, and for such other purposes as the said Board may consider necessary in order to prevent or minimize any loss on the realization of any such securities. (2) For the purpose of this section the expression " Government Superannuation Fund Board " means the Public Service Superannuation Board, the National Provident Fund, the Teachers' Superannuation Board, and the Government Railways Superannuation Fund Board. 4. Disposal of Contributions. —Section 18, Finance Act, 1932 (No. 2), concerns the disposal of the contributions of a contributor convicted of theft or misappropriation of public moneys or public stores If any contributor to the Public Service Superannuation Fund, or the leachers Superannuation Fund, or the Government Railways Superannuation Fund, has heretofore been or is hereafter convicted in New Zealand or elsewhere on a charge of theft or misappropriation of any public moneys or public stores, the Minister of Finance may by writing under his hand direct that any moneys standing to the credit of the contributor in the Fund shall from time to time be applied in whole or in part towards the maintenance of the wife and children of the contributor or towards the maintenance of any other person for whose benefit a maintenance order under the Destitute Persons Act, 1910, could be made against the contributor. If the Minister is satisfied that any such moneys are not required for any of the aforesaid purposes he may direct that they be applied in whole or in part in restitution of the amount or value of the moneys or stores misappropriated or stolen. Every direction under this section shall be given effect to, anything to the contrary in section forty-five or section one hundred and nine of the Public Service Superannuation Act, 1927, or section one hundred and twenty-two of the Government Railways Act, 1928, notwithstanding. 5. Contributions on Value of Emoluments. —Section 26, finance Act, 1932—33, reads as follows . Where by reason of his not having made the election prescribed by the proviso to subsection five of section twenty-nine of the Finance Act, 1925, any contributor to the Public Service Superannuation Fund or the Teachers' Superannuation Fund is not contributing to such fund pursuant to section one hundred and fifteen or the Public Service Superannuation Act, 1927, in respect of the benefits mentioned in that section, such person may, within six months after the passing of this Act, make such election, and shall thereupon be deemed to have become liable to contribute under the said section one hundred and fifteen to the appropriate fund as from the date on which he first enjoyed such benefits as aforesaid or the date of establishment of the fund, whichever date is the later. 6. Statutory Reduction of Rate of Interest on Government and Local-body Securities.—By virtue of the provisions of the New Zealand Debt Conveision Act, 1932-33, and the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, interest-rates on Government securities and local-body debentures have been reduced on and from Ist April, 1933, thus curtailing the Board's income on these classes of securities. „ . A. T. Ngata, Chairman.

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