SOLDIER SETTLEMENT.

Digger (Invercargill RSA), Issue 30, 8 October 1920, Page 10

SOLDIER SETTLEMENT.

LOAN BILL INTRODUCED. PROVISION MADE FOR £6,000,000. NEW COM'P ULSOIiY CLAUSE. The Discharged Soldiers' Settlement Loan Bill was introduced in the House of Representatives recently. It authorises the raising of additional money for - the purposes of the Dischalrged Sbldiers' Settlement Act, the amount not to exceed £6,000.000. The Minister for Finance (Mr Massey) explained that the rate of interest would be 5^ per cent., and that the debentures would not be free of income tax. Securities to the amount of £2,500,000 may be issued as available for the payment of death duties. The amount that a taxpayer may be requir,ed to contribute under the compulsory cTduses ot the Bill is not to exceed the yearly average of the land and income tax payable for the three years ended March 31, 1920. A board of appeal is provided. Money invested in the loan compulsorily will bear interest at the rate of 3 per cent. i —Additional Provision — Explaining the Bill to the House, Mr Massey said tne expenditure would not necessarily be limited to £6,000,000. He believed it would be possible for the Government to transfer anothex- £1,000,000 to the Discharged Soldiers' Settlement Account from balances accumulating in the future. That would make the total sum available £7,000,000. Repayments amount. ed to about £240,000 in the year and the repayments were naturally inorqasing. This sum of £7,000,000 plus £250,000 from repayments, would not begin to be expended until the end of the present month, and ae believed the money would be found to be quite sufficient until the end of the financial year. Mr T. M. Wilford (Leader of the Opposition) asked what would be the rate of interest. Mr Massey replied that the interest would be per cent. The debentures would not be free of income tax.