STATE CREDIT FOR POWER DEVELOPMENT

Chronicle (Levin), 28 September 1946, Page 5

STATE CREDIT FOR POWER DEVELOPMENT

— Press As&ociation

By Telegraph-

CHRISTCHURCH, Sept. 27. A suggestion that the Minister of Finance (Mr. Xash) should be asked to provide a Reserve Bank 'credit, as was provided for State housing, for the finanancing of hydro-electric development, was debated at length and defeated ar today's conference o.f the Electne Power Boards and' Supply Authorities As.sociat.ion. A.remit from the Timaru boanl requested the exec.utive to ask flie Minister for direct answers 011 niaking credits available in new money from the Reserve Bank, as £30,000,000 hau been advaneed by the Reserve Bank to the State Housing Department and Ihe Goverument. was embarking on a heavy jirogramme of expenditure on hydroelect ric. development. Mr. J, M- Bishop, the mover, contended that there were very strong paralle.ls between State housing and hydro-elect ric development, which were earning jmblic utilities harves-ting tlie re.soui'ces of the counfcry for the urgent needs of Ihe people. " He asked wliy one department should pav 4 per cent. interest wliile another paid none. If no niterest were paid 011 a hydro-electric loan and a sinking fund was 5 per cent., tlie loau would be repaid in 20 years. Mr. G. Dash (Waimate) said he

seeonded the remit beeause it askea tor infornmtoin. Progress would not iie made if thev sneered beeause a thmg seeined impossilile. ^His cliurch liaa jiassed a vote of thanks to a memtier who iiad lent it money at .10 per cent. interest, and anybody 75 years ago wiio said a power boanl would borrow at 3 per cent. interest would have been sneered at and laughed at. Alr. M. E. Lyons (Christchurch) said he iioped the exeeutive would not be asked to go along to the Minister ot Finance with question which would uot do credit to a sixth form student at a school of eeonomics. The day ror releasing reserves for inflation was not now, with the tremendous aniount ot money in circulation. The exeeutive could not be expected to be so foolish as to ask Mr. Xash such questions. He uioved as an amendment that the conference request the exeeutive to wait upon the Prime Afinister, the Alinister of Finance, and the Minister of Works to urge that finance be made available to power boards and supply authorities for rural reticulation schemes at a rate as favourable as that given the Btate Housing Department. Seeonding the amendment, the Ilon. Mrs. Af. Af. Dreaver (Auckland) saia Alr. Bishop and Air. Dash had plit forward a case for social credit and a very strong case for the nationalisation or power boards. The Goverument \s pohcy was to uphokl local body administratiou. Air. C. Jenkins (Wanganui) said the remit was inviting the country to go down the path which led to chaos m 1929, tlie borrowing of short money and investing it long. Air. J. L. Hickley (Opunake) saict power boanl members should be the last , to advocate inflation. Both the remit and the amendment; were defeated.