IMPREST SUPPLY BILL.

Dominion, Volume 7, Issue 2187, 27 June 1914, Page 6

IMPREST SUPPLY BILL.

PARTY FIGHTING. A SERIES OF SKIRMISHES. 'An Imprest Supply Bill was introduced by Governor's Messago. On .the secoiid reading stage, SIR JOSEPH WARD (Awarua) asked a question about an advance to the borough' of Whangarei. He suggested that a breach of faith in connection with that loan had been made bv legislation. In .191,1 the borough obtained authority- to borrow from, the Government £19,200-pt:3i per cent.,'plus 1-3-8 per cent., sinking fund. They, received t\vo instalment?,- .amounting to £7000 but. when they applied for the: third instalment they were informed that tlic.V must , pay 4J per cent.,- plus'l3 r 8 per cent. ■ fund, making the total interest. £5 12s. 6d. ■ It .'appeared that an. agreement entered'into had been 'varied, and ho did not think this was right, even if-the rate of interest on the money market had gone up in the meantime.. Cilt-Edged Securities. Sir Joseph Ward asked the Minister of Finance if ho had lodged the "gilt edged securities" for the purposes of any temporary advance, and if so had he lodged them more than once. He had seen it declared that what were formerly Imperial Guarantee debentures, but which were now known as gilt edged securities, were only required to bo issued in times of financial crisis. Ho had seen that statement made more than once ; and. ho wanted to give an unqualified denial. That was never the reason of their creation. They could bo used for a financial crisis, but tho Imperial Guarantee stock, which was available in London for financial purposes, was tliero to bo used between the raising of a loan. It was what it. was created for. It was absolutoly not created for cases of emergency. Tbo securities were there to enablo tho Minister of Finance, if tho London money market was unsatisfactory, and tho rates too high, to lodge for\ temporary advance, till he could go on tho market for a lohn. To refer to that as a crisis was entirely wrong. Sir Joseph Ward also a6ked if there had been any temporary advances siheo the Minister of Finance took office, and whether bo issued Treasury bills for.obtaining the advances. Of course lie had, and the speaker looked upon it as a perfectly proper thing to do. Sir Joseph Ward wanted information with regard to advances to local authorities. Ho was desirous,of knowing what the Government had lent to local authorities during tho last , financial-year, and ho wanted to know if the loans were to bo paid within tho year in which authority was given. There had been agreat song against him over the liabilities of local authorities, and it was absolutely unfair.