LOAN.
No. 1 of 1938.
An Act to authorize the Raising and Expending of a certain Sum of Money.
[Assented to 6th May, 1938.]
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.
1. This Act may be cited as the Loan Act 1938.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow £10,300,000.
3. The Treasurer may, from time to time, under the provisions of the Commonwealth Inscribed Stock Act 1911–1933, or under the provisions of any Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the whole the amount of Ten million three hundred thousand pounds.
Purpose for which money may be expended.
4. The amount borrowed may be issued and applied for the expenses of borrowing and for the purposes set forth in the Schedule to this Act.
Section 4 THE SCHEDULE.
— | Appropriated by this Act. |
DEPARTMENT OF DEFENCE. | £ |
Navy | |
Under Control of Department of Defence. | |
Naval construction and additions to fleet............................. | 1,750,000 |
Reserves of stores, including ammunition, ordnance, torpedo stores and fuel oil... | 135,000 |
Naval establishments— | |
Machinery and plant and Wireless Telegraphy equipment................ | 60,000 |
Equipment for port defence................................... | 345,000 |
Under Control of Department of the Interior | |
Buildings, works and sites...................................... | 300,000 |
Total Navy............................. | 2,590,000 |
Army. | |
Under Control of Department of Defence. | |
Coast defences—equipment and works.............................. | 80,000 |
Arms, armament and ammunition, mechanization and equipment and reserves.... | 1,645,000 |
Defence Works—Darwin....................................... | 20,000 |
Under Control of Department of the Interior. | |
Buildings, works and sites...................................... | 210,000 |
Total Army............................ | 1,955,000 |
Air Force. | |
Under Control of Department of Defence. | |
Landplane and seaplane equipment and plant, including spare parts, machinery, tools, ordnance and engineering supplies and ammunition | 2,345,000 |
Warlike stores and equipment.................................... | 350,000 |
Under Control of Department of the Interior. | |
Buildings, works and sites...................................... | 1,020,000 |
Total Air Force.......................... | 3,715,000 |
Munitions Supply Branch. | |
Under Control of Department of Defence. | |
Machinery and plant for manufacture of munitions...................... | 450,000 |
Under Control of Department of the Interior. | |
Buildings, works and sites...................................... | 570,000 |
Total Munitions Supply Branch.............. | 1,020,000 |
Principal Supply Officers Committee. | |
Under Control of Department of Defence. | |
Armament annexes, plant, materials and experimental work................ | 720,000 |
Total Department of Defence........................... | 10,000,000 |
Overview
The Loan Act 1938 was enacted to authorize the Commonwealth of Australia to borrow a specified sum of money to address defence-related expenses. This Act was assented to on 6 May 1938 by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The primary purpose of the Act was to allow the Treasurer to borrow up to £10,300,000 under the provisions of existing legislation, such as the Commonwealth Inscribed Stock Act 1911–1933 or any Act authorizing the issuance of Treasury Bills. The funds raised by this borrowing were intended to cover various defence-related expenditures, including naval construction, military equipment, and infrastructure projects as outlined in the schedule attached to the Act. This financial provision was essential for the Commonwealth to meet its defence commitments and enhance national security during a period of increasing international tension.
Scope and Application
The Loan Act 1938 applies to the Commonwealth of Australia and authorises the Treasurer to borrow up to £10,300,000. This borrowed sum may be issued and applied for expenses related to borrowing and for specific purposes outlined in the Schedule to the Act. The Schedule details the appropriation of funds among various defence-related projects, such as naval construction, army equipment, air force supplies, and munitions manufacturing, all under the control of the Department of Defence and the Department of the Interior. The Act extends its application through the Schedule, which lists the specific allocations for different defence initiatives. The Act does not explicitly state any exclusions, exemptions, or thresholds, but it is limited to the borrowing and spending amounts specified within the Act and its Schedule.
Key Provisions
The Loan Act 1938 primarily authorises the Treasurer to borrow a sum of money not exceeding £10,300,000 (sections 1 and 3). The borrowed funds can be issued and applied for specific expenses and purposes detailed in the Act (section 4). The Act outlines the allocation of funds towards the Navy, Army, Air Force, Munitions Supply Branch, and the Principal Supply Officers Committee, as detailed in the accompanying schedule (section 4 and Schedule).
The Act imposes an obligation on the Treasurer to borrow up to the specified amount and allocate the funds as per the Act's provisions. Each department and entity, such as the Department of Defence and the Department of the Interior, must ensure that the funds allocated to them are used for the specified purposes, such as naval construction, armament, ammunition, equipment, and buildings, as detailed in the Schedule (section 4 and Schedule).
There are no specific offences or penalties outlined in the Act for breach of its provisions. However, any misuse or misallocation of funds could potentially lead to legal consequences under general principles of public law, including accountability and recovery of misappropriated funds. The Act itself does not prescribe specific penalties but leaves the consequences of non-compliance to be determined in accordance with the broader legal framework governing public finance and administration.