Loan (Unemployment Relief Works) Act (No. 2) 1932 (Cth)

LOAN (UNEMPLOYMENT RELIEF WORKS) (No. 2).

No. 23 of 1932.

An Act to amend the Loan (Unemployment Relief Works) Act 1932.

[Assented to 28th May, 1932.

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Loan (Unemployment Relief Works) Act (No. 2) 1932.

(2.) The Loan (Unemployment Relief Works) Act 1932 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Loan (Unemployment Relief Works) Acts 1932.

Amendment of long title.

2. The title of the Principal Act is amended by adding at the end thereof the words “, and for other purposes”.

Power of Treasurer to borrow.

3. Section two of the Principal Act is amended by inserting, before the words “The Treasurer”, the words “Subject to this Act,”.

4. After section four of the Principal Act the following sections are inserted:—

Conditions of grant.

“4a. Any grant made to a State in pursuance of this Act shall be made upon the condition that if any part of the amount granted is advanced by the State by way of loan to any person, or to any authority or body of persons constituted or established by or under any law of the Commonwealth or of a State, for expenditure on approved works, any amount of the advance refunded to the State by that person, authority or body of persons shall be repaid by the State to the Commonwealth, together with such amount of interest on the amount advanced as is paid by the person, authority or body of persons to the State.

Payment by Commonwealth of Interest on loans by Commonwealth or State authorities.

“4b.—(1.) Where any authority or body of persons constituted or established by or under any law of the Commonwealth or of any State specified in section four of this Act borrows money on terms approved by the Treasurer for the purposes of expenditure on any approved work in that State, the Commonwealth may pay to the State interest, at a rate not exceeding two per centum per annum, on the amount borrowed by the authority or body of persons.

 

“(2.) Any payment by the Commonwealth under the last preceding sub-section shall be conditional upon the State providing an equivalent amount of interest on the amount borrowed by the authority or body of persons.

“(3.) Any amount of interest paid by the Commonwealth or provided by the State under this section shall be applied in satisfaction or reduction of the liability of the authority or body of persons in respect of interest on the amount borrowed by it for expenditure on approved works.

“(4.) Where the Commonwealth makes any payment by way of interest under sub-section (1.) of this section to any State, the amount which may be granted to that State under section four of this Act shall be reduced by one-half of the amount upon or in respect of which the interest is so paid.”.

Relief of unemployment in New South Wales.

5.Section five of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “an amount not exceeding” and inserting in their stead the words “, or make available by way of loan, amounts not exceeding in the whole,”;

(b) by omitting from sub-section (1.) the words “in that State”;

(c) by adding at the end of sub-section (1.) the words “in that State”; and

(d) by adding at the end thereof the following sub-section:—

“(8.) Where any authority or body of persons constituted or established by or under any law of the Commonwealth or of the State of New South Wales borrows money on terms approved by the Treasurer for the purposes of expenditure on any approved work in that State, the Commonwealth may pay to or on account of that authority or body of persons interest at a rate not exceeding four per centum per annum.

“(9.) Where the Commonwealth makes any payment by way of interest under the last preceding sub-section, the maximum amount which the Commonwealth may expend under sub-section (1.) of this section shall be reduced by the amount upon which the interest is so paid.”.

6.After section five of the Principal Act the following sections are inserted:—

Reduction of amount which may be borrowed under this Act.

“5a. The maximum amount which, under section two of this Act, the Treasurer is authorized to borrow, shall be reduced by one-half of the amount of any loan upon or in respect of which the Commonwealth pays interest under section four b, and by the amount of any loan upon or in respect of which the Commonwealth pays interest under sub-section (8.) of section five, of this Act.

Appropriation.

“5b. Any payment by the Commonwealth under section four b, or under sub-section (8.) of section five, of this Act shall be made out of the Consolidated Revenue Fund which is, to the necessary extent, hereby appropriated accordingly.”.