Loans for £7,000,000 Given Authorisation

Sun (Auckland), Volume III, Issue 815, 8 November 1929, Page 10

Loans for £7,000,000 Given Authorisation

FINANCE BILL BIG SUM FOR WORKS THE St'.Y’S Parliamentary Reporter WELLINGTON, Thursday - The authorisation of three big new loans is provided for in the Finance Bill which was brought down in the House of Representatives today. The sum of £4,000,000 is sought for Public Works, and £2,000,000 for education, and £IOO.OOO for work under the Forest Act.

The Minister of Finance is to be empowered to lend up to £IO.OOO to the Fiji Government in connection with work at the Makogai Leper Asylum. He is also empowered to lend up to £IO.OOO to the Native Minister in coneetion with native land settlement. Under one clause loan moneys under the Native Land Act, Railways Improvement Authorisation Act, the Swamp Drainage Act, the Education Purposes Loans Act, and the Hauraki Plains Act may be expended from April 1 next year only in accordance with appropriation by Parliament. To pay the cost of repairs to roads and public services following on the recent earthquake, the Minister of Finance is to be empowered to expend up to £IO,OOO out of the Consolidated Fund.

Under one clause money lying with the Public Trustee and unclaimed after six years may be transferred to the Consolidated Fund, but shall be paid to the owner on production of proof of ownership.

In accordance with the announcement made in the Budget, authority is given for the writing off of £§,100,000 interest on capital expended on the railways. It is also intended to repeal the legislation by which losses on branch railways have to be made good out of the Consolidated Fund. Still another Budget proposal is given effect to in that provision is made for the transfer of one-half of the profits of the Public Trust Office to the ordinary revenue of the Consolidated Fund. The remaining profits are to be transferred to the Assurance and the reserve fund or the Investment Fluctuation Account. The Public Trustee is authorised to expend sums from the. Loan Account to minimise any loss on securities that may fall into his hands. Provision is made for those racing and trotting clubs which* held special meetings in aid of the earthquake relief fund to be exempt from taxation on those meetings. The amount of money loaned by the Public Trustee in connection with -the erection of the Chateau Tongariro is to be increased from £40.000 to £50,000. + The rate of pension payable to children of soldiers receiving pensions for total blindness is not to be dependent upon any property or income of the soldier, his wife, or any of his children. RAILWAY ACCOUNTANCY HOUSE PASSES BILL Press Association WELLINGTON, Today. The House o£ Representatives continued the debate on the second reading of the Finance Bill after the telegraph office closed until 4.30 o’clock this morning. Members expressed appreciation of the provisions relating to miners phthisis. The Bill was lead a second time and then considered in committee. The clause providing for the repeal of authority for payment out of Consolidated Fund of losses incurred on operating branch railway lines w 7 as debated at length, the Header of the Opposition asked why the system should be repealed which enabled people to see where the losses on railway working actually took place. He suggested that operating railways should not he asked to pay losses on developmental lines. The Leader of the Labour Party said that be had never been able to understand why losses on branch lines should be made up from the Consolidated Fund. It would be far better to show losses in detail. The method proposed in the Bill was an improvement on the present system. The Hon. W. B. Taverner, Minister of Railways, agreed with Mr. Holland, and stated that under the proposed system the complete loss would he shown.' Mr. W. Downie Stewart (Dunedin West) contended that the present system made for a clear line of demarcation between developmental lines and the general system of railways. The Hon. G. W. Forbes, Minister of Agriculture, said that many branch lines were not being used to the full extent, and it was a question whether the country could afford to go on losing money on these lines. It would have to be considered whether the lines could continue to be used. On a division the clause was retained by 42 votes to 22. The remainder of the Bill was then put. through with minor amendments, and the measure was read the third time and passed. The House adjourned at 4.30 a.m. till a.m. this morning.