LOAN (No. 3).
No. 62 of 1940.
An Act to authorize the Raising and Expending of a certain Sum of Money.
[Assented to 5th December, 1940.]
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 (No. 3) 1940.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow £2,020,000.
3. The Treasurer may, from time to time, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911-1940, or under the provisions of any Act authorizing the issue of Treasury Bills, moneys not exceeding in the whole the amount of Two million and twenty thousand pounds.
Purpose for which money may be borrowed.
4. The amount borrowed shall be issued and applied only for the expenses of borrowing and for the purposes of appropriations made or to be made by law.
Issue and application of £2,000,000.
5. There may be issued and applied out of the proceeds of any loan raised under the authority of this Act, or any other Act, the sum of Two million pounds for the purposes set forth in the Schedule to this Act.
THE SCHEDULE.
— | Appropriated by this Act. |
Postmaster-General’s Department. | |
Under Control of Postmaster-General’s Department and Department of the Interior— | £ |
Telephone exchange services................................ | 1,376,000 |
Trunk line services....................................... | 331,000 |
Telegraph and miscellaneous services.......................... | 43,000 |
National Broadcasting service............................... | 29,000 |
Buildings, works, sites, fittings and furniture...................... | 221,000 |
Total Postmaster-General’s Department..................... | 2,000,000 |
Overview
The Loan Act (No. 3) 1940 was enacted by the Australian Parliament to address the urgent need for financial resources to support the nation’s wartime efforts and associated infrastructure. Assented to on 5th December 1940, the Act authorised the Treasurer to borrow up to £2,020,000, with the funds intended for expenses related to borrowing and specified appropriations. This Act allowed for the issuance and application of £2,000,000 for various services under the Postmaster-General’s Department, including telephone exchange services, trunk line services, telegraph services, and the National Broadcasting service, among others. The primary objective of the Act was to provide the necessary financial support to enhance and maintain essential communication infrastructure during a period of national crisis.
Scope and Application
The Loan Act (No. 3) 1940 is a Commonwealth Act that authorises the borrowing of up to £2,020,000 by the Treasurer for specific purposes outlined in the legislation. This Act applies to the Treasurer and any authorised financial institutions through which the funds are borrowed under the provisions of the Commonwealth Inscribed Stock Act 1911-1940 or any Act allowing the issuance of Treasury Bills. The funds can only be used for the expenses of borrowing and for appropriations made or to be made by law, as specified in section 4. The Act applies nationally within the Commonwealth of Australia and does not include any explicit exclusions, exemptions, or thresholds beyond what is detailed in the Act itself. The application of the funds is strictly governed by the appropriations listed in the schedule, which primarily benefits the Postmaster-General’s Department and the Department of the Interior for telephone exchange services, trunk line services, telegraph and miscellaneous services, national broadcasting services, and related infrastructure. The Act does not extend its application through subordinate instruments but confines its scope to the provisions outlined in the primary legislation.
Key Provisions
The Loan Act (No. 3) 1940 primarily authorises the borrowing of a specific sum of money and the application of those funds. Under section 3, the Treasurer is empowered to borrow money, up to a total of £2,020,000, either through the provisions of the Commonwealth Inscribed Stock Act 1911-1940 or any Act authorising the issuance of Treasury Bills. This borrowing is restricted to the amount specified, ensuring that there is a clear limit on the funds that can be raised. Section 4 stipulates that the borrowed money can only be used for the expenses incurred in the process of borrowing and for the purposes of appropriations as determined by law, ensuring that the funds are directed towards legitimate and pre-defined uses.
The Act places certain obligations on the Treasurer and other relevant authorities. Section 5 allows for the issuance and application of £2,000,000 from the proceeds of any loan raised under this Act or any other Act, specifying that these funds should be used for the purposes detailed in the accompanying schedule. The schedule outlines that these funds are to be allocated to the Postmaster-General’s Department for specific services and infrastructure, including telephone exchange services, trunk line services, telegraph and miscellaneous services, the National Broadcasting Service, and various buildings, works, sites, fittings, and furniture. This allocation ensures that the borrowed funds are directed towards specific, authorised expenditures.
The Loan Act (No. 3) 1940 does not explicitly outline offences, penalties, or civil/criminal consequences for breaches of its provisions. However, given the nature of legislative borrowing and appropriation, non-compliance with the specified requirements or misuse of funds could potentially lead to legal repercussions under other relevant laws. Such breaches could include mismanagement of public funds, misallocation of resources, or failure to adhere to appropriation laws, all of which could result in legal actions under the broader framework of Australian administrative and financial law.