This section provides authority for the further issue from the Central Fund of sums not exceeding £30 million to meet expenditure on telephone development works. It is to be noted that the wording "as have been or may be required by the Minister for Posts and Telegraphs" would cover expenditure already incurred in excess of that authorised by previous Telephone Capital Acts; also that the issue of money by the Minister for Finance to the Minister for Posts and Telegraphs is subject to estimates of expenditure being approved by the Minister for Finance. Estimates of expenditure for each financial year are submitted to the Minister for Finance for approval about the previous December.
Committee on Finance. - Telephone Capital Bill, 1963— Committee and Final Stages.
Question proposed: "That section 1 stand part of the Bill."
Question put and agreed to.
SECTION 2.
Question proposed: "That section 2 stand part of the Bill."
This section includes departures, made at the request of the Minister for Finance, as from the corresponding section of the 1960 Act.
Subsection (1) (a) gives the Minister for Finance authority to borrow on foot of terminable annuities in order to provide the Central Fund with moneys to be issued for telephone development, or in order to make good issues already made for telephone development. It is in line with the corresponding Section of the previous Act save in regard to the period of repayment (see below).
Subsection (1) (b) is a new provision. It provides the Minister for Finance with an alternative means of raising the necessary money, by enabling him to borrow it, not only on foot of terminable annuities, but also in the ordinary way in which capital is raised by the State, e.g., National Loans and Prize Bonds. The new subsection will make certain that sufficient money can be borrowed, in the unlikely event that the Post Office Savings Bank Fund from which money is raised on the security of terminable annuities, should prove to be insufficient.
The provisions in regard to repayment have been changed. The period of repayment of moneys raised under the Telephone Capital Acts 1924/46 was limited to 20 years and under the Acts 1951/60 was extended to a period not exceeding 25 years. No specific period of repayment is provided for under the present Act, and instead the moneys issued will be repaid over such period as the Minister for Finance, after consultation with the Minister for Posts and Telegraphs, may determine. This change is necessary to bring the provision into line with the practice followed for the repayment of ordinary borrowing by the State, e.g., borrowing under the Central Fund Act each year. In addition it will enable the period of repayment to be extended if there is any appreciable variation in plant lives due to technical or other developments.
It is not intended, I take it, to use these powers for the purpose of suspending altogether the sinking fund related to borrowings for capital expenditure?
That is not the intention.
The same principle will continue, that the telephone service will be designed to pay its way as it has done in the past?
Yes.
Including the repayment of its capital outlay over a reasonable term?
Yes.
Question put and agreed to.
Sections 3 and 4 agreed to.
Title agreed to.
Bill reported without amendment, received for final consideration and passed.
This is a Money Bill within the meaning of Article 22 of the Constitution.