LOAN BILL INTRODUCED

Dominion, Volume 14, Issue 4, 30 September 1920, Page 6

LOAN BILL INTRODUCED

£6,000,000 FOR SOLDIER SETTLEMENT MR. MASSEY EXPLAINS THE POSITION 1 v" NBW COMPULSORY CLAUSE The Discharged Soldiers' Settlement Loan Bill was introduced in the House of iiepreseutatives yesterday aiteniuon. The Bill authorises the Government to rai6o a, sum not exceeding j£0,000,000 for expenditure under the Discharged Soldie re' Settlement iict. Tho Prime Minister, explaining tho Bill to the House, said that the expenditure would not necessarily be limited to i£li,ooo,ooo. He believed that it would be possible for tho Government to trans ier another million to the Discharged Soldiers' Settlement Account from balances accumulating in tlie future. That would make tho total sum available ■£7,000,000. Repayments Amounted lo about .£240,000 in the year, but tho eitro, million ho had mentioned was out made up of repayments, which naturally were increasing. This auin of seven millions, plus a quarter of a million repayments, would lot begin to be expended until the end of the present month, and lie believed that the money would be found to be .juite-sufficient until the end of tii© {mondial year. The Leader of the Opposition (Mr. Wilford) asked vjjat would be tho rato of interest, and if tho debentures would be free of income tax. Mr. Massey replied that the interest would be per cent. The debentures would not be free of incomo tax. Air. Luke (Wellington North): You will get all the money, Mr. Massey: I think there will bo enough loft for Wellington City. Mr. Luke: You are going ty impoverish us. Mr. Massey: I think there will bo quite enough fpr Wellington City and for the general G'-vpiiunent as .-well. Mr.-Wilford: Have you got a compulsory provision? Mr. Massey: Yes. There is a .provision in tie Bill which allows dobentures to the amount of .J>2,500,000 to be used in the payment of death duties. I have reason to believe that tho whole of th«o will be taken up. I think that the whole of the loan will be taken up. The compulsory provision is not the same as in tho previous Bills. We had power previously to' require taxpayers to subscribe three times the amount of their land and income tax in any one year. We do not think it necessary to go so far on this occasion, and wa are asking by way of compulsion an amount equal to tho .land and income tax paid by the taxpayer in any one year, That will bring in more than we are asking for. Tho Treasury does iiOt believe that it will Ixs necessary- to bring the compulsory provision into operation at, all. That is the opinion of W financial advisers. . , „ ~ Dr. Thaclter (Christchurch East): If you are over-subscribed, will you lend the excess money to tho local bodies? Mr. Massey: "That is another matter.' Tho Prime Minister added that he wanted. it understood clearly that all the money asked for under the Bill was to bo used for the settlement of discharged 6oldiers. Ho would have to ask for authority for another loan later on, probably not this side of Christmas, and perhaps not within the present financial year Ho would have to ask for authority to borrow .£2,500,000 for public works. The Government was not short of money for public works. It had invited subscriptions (o a loan of «,000 recent ly, and although the amount had. not been fully subscribed, the rate of interest being the low one of 5 per he was informed that, there was 000 in eight. Mr. Mafsey added thai, he was strongly of opinion tj ,at Wl ° Government's U per cent, debentures, free of income tax, were being sold below their true value at the present time. Mr. Wilford: They are. . Mr. Massey: That is my opinion. I simply express that opinion m * Minister for the time being. This J3.11. has nothing to do with the H per cent. frce-of-income-tax debentmea. I in. y have occasion to Tefer to these debentures later, but will not say anything now except that strict faith is being kept regarding these debentures. They are not being interfered with in any "f(r. Luke: What about ' Mr. Massey: We V.ave to renew .£IO,OOO - 000 bcfo« the end of the X think that nearly the whole of U)0 money will be available for renewal. If any now money is wanted, we can seo out "WAV to find it. » Dr Thaclter: What about loans for housing in the cities and towns Mr Massey: That is included in this Bill, as far as Discharged eoldiors are concerned, AVe are encouraging the men to lniild houses rather than buy them. 1 DETAILS "OF THE BILL' THE TRANSFER OF FUNDS. The Discharged Soldiers' Settlement Loan Bill authorises the raising of additional money for the purposes of tlie Discharged Soldiers' Settlement Act, the amount not to exceed 000,000. The Minister of Finnnce (Mr. Massey) explained in tho House that the rate ot interest would be 5J per cent., and that the debentures would not be free of incomo tax. . Out of tho total loan of bix millions, the Minister is authorised to raise an amount not exceeding two and a halt millions bv the issue of inscribed stock available for tho payment of death duties. Stock used in paying death duties is to bo accepted by the Commissioner of Stamps at par, with the addition of wiy interest due but unpaid at tho date of transfer. It is further provided that: No transfer of stock issued under this section shall be registered, and no stock certificate shall be issued in respect thereof during the lifetime of the registered holder. _ Jf the holder of any inscribed stock issued under this section exchanges such inscribed stock for debentu-ws or other securities pursuant to tho authority in that behalf of section three of the New Zealand Inscribed Stock Act, 1917, the debentures or ether securities so issued in exchange shall not themselves bo deemed to lw available for the payment of death duties. If on the death of a registered holder, rhe whole or any portions of his inscribed stock is not used in the payment of death duties, it will cease to bo available for that purpose. Under the compulsory clause of the Bill, the Commissioner of Tuxes may call upon anv taxpayer who has not done so to contribute to the loan an amount- not exceeding "the yearly average of the land-tax and income tax paid or payable bv him for the three years ended on March 31, 1920 " In ascertaining the amount subscribed by any person the Commissioner is lia take account of the purchase of war-loan certificates, but not of tho purchase of securities in the projected loan unless from the Minister ot Finuuco or his agents. Tho rate of interest on compulsory contributions is three per cent. Tho penalty for noncompliance with an order to' contribute is the imposition of a penal tax equal to double tho total amount of tho land tax and incomo tax payable by the perwin concorned under the annual taxing legislation of last year. _ The Minister of Finance is authorised to draw fr«m the Consolidated l'und Bums, not exceeding £50,000 per annum with which to _ purchase stock in tho proposed loan when its value falls below jiar. Stock so redeemed is to bo can1S last clause of the Bill provides that tho sum of drawn last year from the accumulated revenuo surplus for tho purposes uii soldier wtUc mont is to remain so invested. Unexhausted loan authorities of ll J Co ,^ rao " i 1?„ are extinguished. Interest at. tho rate of four per ccnt. per annum _ on the invested surplus is to bo paid into tl Consolidated Fund, .but sinco tho WPjr is being repaid in instalments by Kijdiot

settlers, the ordinary sinking fund charge under the Public Debt Extinction Act is dispensed with. ELECTRIC POWER BOARDS AMENDING BILL DISCUSSED WELLINGTON'S POSITION The Minister of Public Works (Hon. J. G. Coates) moved thp second reading of the Electric Power Board,® Amendment Bill in the House late last night. He said that the Bill was the outcome of a conference of local bodies held recently. Most of its clauses merely improved the present machinery. The Bill proposed to give a power board tho right to collect rates through the existing local bodies as an alternative to preparing its own rate roll. A maximum salary of .£2OO for chairman of power boards had been fixed in' tho main Act. The conference had felt that tlii'a sum was too small for a business man who had to devote much time to public work, and the Government was taking power to fix tho amount of the salary from time to time. Mr. J. P. Luke (Wellington North) said he believod there was a desire on tho part of the existing local authorities in the four large cities to do the work of electrib power boards in their respective districts. This would do away with the necessity for creating now authorities with rating powers. The Minister was probably thinking that the local authorities in a city could not go bevond their own district; thev could do so. however, if legislative authority was given them by the Bill. . "The people of Wellington district," 6£tid Mr, Luko, "would rather work along with the local authorities created a board for tho purpose of executing hydro-electric schemes, than have a new board built up outside tho local authorities altogether." Mr. G. Mitchell (Wellington South) complimented tho Minister upon the Bill. He hoped that the purchase! of material would bo made at the earliest possible date, and that steps would b« taken to ensure that one board should not compete against another in the making of purchases. Replying to tho point raised by Mr. Luke, the Minister 6tated that there was nothing to prevent tho local authorities in tho citiw from having control of the business of reticulation, provided they did not say that they would not take in this or that pnrt of the borough area. They must take in the whole area. Mr. Nash (Palmeraton): Can they take in certain portions of a county? Mr. Coates replied that they oould, with the approval of the Minister. That wns the law at present, aiid the Bill did not propose to alter it. Mr. Nash: But if they take in a portion of a .county -t will be necessary to set up a power'board. The 'Minister: "Not if we allow 'you to reticulate that nnd call it your area." Tho object of the Government, Mr. Coates continued, was simply to see tlmt when the boards were formed, no part of the country had to go without reticulation, valuatioTof land THE NEW ASSESSMENT COURT. The Prime Minister moved tho second reading of tho'Valuation of Land Amendment Bill in the House at 11.40 last night. A protest against taking neiv business after three other Bills had been read a second time came from the Opposition benchcs. Mr. Massey replied that members who were protesting had asked him to press'forward the business of the session. He intended to direct' the business in his own way. The chief provision of the Bill, said Mr. Massey, was tho creation of an Assessment Court, lidded by a barrister or solicitor, who ivould become an expert. The proposal was on the lines of tlie recommendations nade by the Valuations Commission in 1914. The Government woukl appoint an assessor for each land district,, and each local authority would appoint au assessor for its own district. Ho believed that this arrangement would prove a very great improvement on the existing of assessment, nnd that tho old grievance of lack of uniformity w-.iuld bo largely overcome. Several members voiced grievances regarding assessments. The debate continued after midnight. The Bill was read a 6econd time, and tho House rose at 0.50 a.m. INDENTURED"LABOUR MR. M'COMBS SEEKS INFORMATION. Tho member for Lyttelton (Mr. M'Combs) made an effort in tlfe House of Representatives yesterday to secure from the Minister of External Affairs an undertaking to lay upon tho table copies of correspondence between the British Government and the New Zealand Government regarding the indentured labour in Samoa, and also copies of the contract signed by the indentured Chinese. The Minister was not responsive. He indicated that the member had better move for a return, Mr. M'Combs retorted thnt ho had given notice of a motion, but had not been able, to move it. The Minister remained unsympathetic ami the Labour member .was left unsatisfied. THE DIRECTOR OF EDUCATION AN AGE LIMIT. The age limit for applicants for the position of Director of Education who is lo I>e appointed for the Dominion was made the subject of a question which Mr H. Itmore (kelson) asked the Minister of Education in the House of Representatives yesterday. Mr. Parr, after making inquiries to verify his first impression that the Public Service Commissioners were requiring that applicants should bo under to vears of aae, announced that the conditions said that they should preferably ho Between the aces of 3d and 45 years. lime A SHORTAGE OF TRUCKS. Tho failure of the Railway Department to provide trucks for the carriage of lime was the substance of a complaint made in the House of Representatives by Mr. W H. Field (Otaki). The member stated that the farmers iwre in need of limo tor spring sowings, and the Morrinsville Company was able to supply if trucks were made available. .... . it,. Mr Massey promised to inquire on the point. He mentioned that thsre was a shortage of trucks, which could not be overcome until additional B "PP h< *L c ' n ™, e to hand from'contractors. Ihe Department probably believed m the meantime that other goods were more important than lime. THE EXPLOITED LANDLORDS *Tho grievance of elderly persons who have invested their savingsi in houses, and who find themselves prohibited from rnisintr rents, although the cost of lning has increased, ivafi mentioned House of Representatives by Dr. Thacker (Christchurch East). Sir William Heiries said, in reply, mutter would bo dealt with in tho Hou% .Mil that was shortly coming down. The Government auito realised the hardship, but vet there was difficulty .if they turned the present occupiers out. Ihe question really was ono of valuation and some Magistrates ruled ono way and others another wav. Matters i ! n regard to housiii" would be dealt with in the amending Bill.