THE HOUSE.

Dominion, Volume 6, Issue 1815, 30 July 1913, Page 6

THE HOUSE.

The House of Representatives met at 2.SD p.m. ■ ' Mr. D. H. GUTHRIE (Oroua), on be- ' halt' of Sir Walter Buchanan, introduced the Roman Catholic Archbishop Empowering Bill, 1913. The Bill was read a first time. Mr. AV. NOSWORTHY (Ashburton) gavo notice to introduce tho Lyttelton Harbour Board Land Bill. , , A SHIPPING RUMOUR. Mr. J. H. BRADNEY (Auckland West) asked the Government, without notice, whether there was any truth in tho rumour that tliq 1\ and 0. Company intended to ceaso running to Auckland. . The Hon. I l '. M. B. FISHER said that officially no information had, been received by tho Government. Scmi-ofiicially ho. had received information on tho point, but ho was not at liberty to disclose any of it. AT RIPA ISLAND. Mr. J. PAYNE (Grey Lynn) asked a question, without notice, about the youths confined at Ripa Island for refusing military service, ll'o said that one boy had been released by tho magistrate after re- ■ if using to serve, and that, tho Passive ' Resistors' League considered that, in equity, other boys should be released 011 tho same terms. Ho asked what the Government intended to do in tho matter. 1 ho Hon. JAMES ALLEN (Minister for Defence) said that no boys were being released until their time was up. The caso against ono boy had been dropped because at the time thero was no proof before the magistrate that the regulations governing military detention had been approved by tho Minister.' The regulations hail been approved by the Minister. LEAVE OF ABSENCE. Four days' leave of.absence.were granted to Mr. J. Vigor Brown, on account of .illness, and an equal period to' Mr. A. E. Glover, on account of urgent private business. A LOCAL BILL, . The Hamilton High School Reserve Dill (Jlr. Young) was read a first time. STATE LENDING. TWO IMPORTANT BILLS. The following Bills wero introduced by Governor's Message and read a first tune: —Local Bodies' Loans Amendment Bill, State Advances Amendment Bill, Ranjriora Drill Shed Situ Bill. . Tho Hon. JAMES ALLEN stated, in ; reply to a question by tho member for .Wan, that trie Local Bodies' Loans Bill was mainly a consolidating measure, but I embodied somo important alterations. I During tho previous session legislation 1 iiad been passed limiting the amount to be borrowed annually on behalf of local < bodies: Practically 110 provision had been • -made 011 that occasion lor the larger local bodies, and this was being done in tho i present Bill. These bodies would be allowed to g.> to tho market with the Governnient .guarantea behind them. Mr. Witty: Up to what amount? Mr. Allen: Up to half a million a year 110 added that when in London lie instituted inquiries as to tho probable effect : of the Government guarantee, and had gathered ,ttiat white it might not make much, difference in tho case of strong local bodies, it would be a considerablo assistance in tho ca.3o of those which were woakcr. The Advances Dopartment. Tho State Advances Bill, Mr. Allen stated, proposed somo important alterations in the law. Under tho present Act ! the Superintendent of Advances was sup- ■ posed to borrow money outside Now Zea- ! land, with tho Government guarantee be- ! hind him. This power had never been utilised. No money had ever been borrowed by tho Superintendent, and 110 ' money ever would be. In fact, it was . an absurd provision, because the Minis- ' ter had always done what borrowing we.s necessary. The provision authorising the ' Supeiintendent to borrow had been dono ] away with, aud the law had been sim- ( plilied and broken up. This Bill dealt j with State advances to local authorities, . to. settlers, and to workers only, for tho j reason that these three branches wero 1 all in the hands of the Superintendent. Tlis legislation dealing willi local Ixnly ] loans was embodied in one Bill which ho . had shortly explained that afternoon. Ho J far as it dealt with administration, the present Bill auplicd only to advances to (

settlers ami advances (o workers. Under tile lit 'A" as it stood, provision was made for a reserve fund, and also for a sinking fund of one per cent, to be paid over to the Public Trustee. Returns ironi the Department had never been suinrient to provide the one per tent, sinking land out of revenue. As a consequence, a portion of the sinking fund hud been taken from borrowed money or from repaid capital. Save in tho case of existing loans, tho 0110 per cent, sinking fund would bo done away with, and future loans would come under the sinking fund provisions of tho Act of .1910 (the 75-year sinking fund), Each of the Departments would pay its share into Idle 75-year sinking fund, and any balance would'be retained in tiie Departmental funds, and held i'or reinvestment, instead of being paid over to the Public -Trustee. They had power to Ret back tho money li'eld by ilio Public Trustee, but had never used it because it was so cumbrous as to bo almost useless. • Another important alteration affected tho constitution of the board. It was proposed to take the Minister off the bonvd altogether. He did not sit now, as a rule. The new board would consist of the Superintendent, tlia Valuer-General, the Commissioner of Crown Land?, and two other heads of ■Departments, to be appointed from time to time. Outside representation was being abolished. It had been found of no use, and expensive. . Control of Commitments.' Mr. (/. W. RUSSELL (Avon) asked wltat would happen if tho board entered into commitments that -were beyond the power of tho Minister for I-'inance to supply. Much had been made of the fact that commitments were greatly in excess of tho funds in hand to meet them when the present Government took office, but it was quite clear that the board, and not tho Ministry of the day, had made these commitments. To his mind, it was a great mistake to remove the Minister from tho board. The board, in.the absence of the Minister, might enter- into very heavy commitments, and -when a change of Government occurred, the Ministry coining in might lind itself hampered by excessive commitments, as the present Government had done. Mr. Massey: A very important admission. Mr. Russell said that he ivas only paraphrasing what his' friends on the other side had said. The Minister might conceivably find himself saddled with the same responsibility as his predecessor had been. The • Hon. JAS. ALLEN: I am very glad that the 11011. gentleman realises the difficult position in which he left us. He now has admitted—and he must admit, and everybody must admit—that the Government that camo into oflico in July la.st was hamperc-d, and very, very seriously hampered, by the commitments of the Government that preceded tlioin. Mr. Itusfell: The Post Office turned dog 011 you. That was the whole difficulty. . Ministerial Powers. . Mr. Allan taul that the lion, gentle-. man's attempt to ca.it all the blame 011 the beard was not very magnanimous. He (Mr. Russell) knew very well that not a siug'o liability, under tho old scheme, could bo entered into without tho Minister's signature. - Not one loan could be granted, or ever had been granted, without tho Minister's signature, and the Minister was liable for every single liability entered into., lie had been asked whether the Minister, in doing away with his own scat upon tho beard, had made any provision to prevent the board entering into liabilities greater than the country should have to bear. Provision had been, niado that the. Minister for Finance should havo full acecis to ail accounts, documents un.-l incurs of tho Advances Office. The Superintendent was required to furnish all in-ic'i-malion required by the Minister, and to ' furnish, as early as practicable in cach month, a. return of the total outstanding commitments and funds available to meet commitments, and for further advances, and the total .amount of loans .granted dun-ins the month." Thsso cbusss had be-on iu!i?rhd to give the Minitte-r control over the institution. Mr. AVilford: Yoij come in .When the grants are made? The .Minister said that it was true thai the board had a very short tiino in which. they could make grants, but the Minister might call for a return at any time. ALLEGED AGGREGATION. . Tho Prime Minister tabled papers relating to alleged aggregation of land, and moved that they bo referred to the lands Committee for consideration and report. •This was agreed to. OTHER BILLS. The Hon. A. L. HERDMAN moved that the amendments made to tire Copyright Bill in Committee be agreed to. The. motion was carried, and tho Bill was set down for second reading. On tho motion of the noil. A. L. HERDMAN, the Land Transfer Amendment Bill was referred to the Statutes Revision Committee.