THE HOUSE

Dominion, Volume 8, Issue 2573, 22 September 1915, Page 7

THE HOUSE

THE LOCAL LOAN. AMENDMENTS IN THE BILL, ; Tho House of Representatives met at 5.30 p.m. . . ' ' Amendments to the New_ Zealand Loan, Amendment Bill ivere introduced by Governor's Message. SIR JOSEPH WARD (Minister of Finance), said that the Bill as originally .passed limited- the. amount of ono debenture, to 1000.: Since the Bill was passed he had had an application for a much larger sum, and the amendments proposed to strike.out the limit altogether. If the amendments were agreed •to it would be possible for aiiyone investing money m the . loan to have -£10,000 or £50,000, or any amount in one. debenture.

Mr. T. K. SIDEY (Dunodin South) iask'ed the Minister to give further, consideration to tho proposal that- people should be allowed to anticipate death duties by investments in the loan. • Mr. J. B. HINE (Stratford) urged the Minister to take steps to prevent Government lending departments; like the Public .Trust-Office arid-the Government , Insurance Department from investing in. the loan. His reason for , making this request was that these offices ■ advanced. money. very largely . to farmers for development purposes. 1 Mr.:■ O. A. WILKINSON - (Egmont) isked whether steps had beeif talcen to inake 'the flotation a popular one. and to encourage small investors to take up debentures for. email sums. He suggested that every Post Office Savings Bank should be made a place where deposits could be received. He rather feared .that the Finance Minister's plan was to ■encourage big rather than small investors. .. .

Mr. J. PAYNE (Grey Lynn) advocat--Isd the issue of State notes. Mr. J. A. YOUNG (Waikato) asked that : local bodies'loans should be put on the same footing as- the Government, loan in. regard to the remission of income tax on interest from loan investments.- • Finance Minister Replies. ' SIR: JOSEPH WARD, in reply, re'ferred first to Sir. Sidey's proposal concemiig 'death, duties. He' explained that all the-death duties wore; paid into the consolidated . revenue, and were practically earmarked for a, special .purpose. This loan, however, was intended for public works, and if moneys were expended in public works they could not be reserved for the special -purposes for which the Treasurer very properly hoped to apply moneys received •from death duties. Ho did not approve of the scheme. Regarding the investment of Departmental funds in the loan, he thought that this should be'avoided-if possible. The lending Departments were \ still advancing moneys, but in some parts of the country .where values were .high greater care had to bo taken about the mar- - gin. He believed that the .Government lending Departments: ought to be free to "carry on -their ordinary business. He informed the member , for Egmont that arrangements had been made for -the issue of debentures for £S and multiples of £5.' Ho had thought at first of making the minimum £1,. but had found on inquiry that this was inadvisable. Steps would ho taken to offer facilities, such as $hose suggested by the honourable member, for people of ■ slender means to invest their savings, even in small sums, in tho loan. Ho did not think it w:ould be wise, however good the case might be for a State note issuo, for the Government even to contem- «'■ plate embarking upon such a scheme row. He discussed the general question, showing the dangers of State paper currency. In reply to Mr. Young Sir Joseph Ward said it would be impossible to remit income tax on interest from public bodies' loans. His advice to all publio bodies at this time was to go slow and to postpone less urgent works until tho war was over, and we could say with more certainty what our -financial position was likely t<v b&. ' The amendments were agreed to and referred to the Legislative Council. BILLS IN COMMITTEE. NATIONAL PROVIDENT FUND. '..-'At 7.30 p.m', the House went into Committee on several Bills. The Savings Bank Amendment Bill, the Fruit Preserving Industry Amuedjnent Bill, the SceneTey Preservation 'Amendment Bill, and the Swamp Drainage Bill were put through witli littlo (discission. ! On the National Provident Fund 'Amendment Bill, < I Mr. A'. Harris (Waitemata) moved Jan amendment to provide that no com,jnissions- should be paid to any person for the enrolling of new subscribers, unless "the person was permanently employed for the purposes of the said . Mr. C. H. Poole (Auckland- West) iconsidered the amendment inopportune, and pointed out that a special commitf><je was dealing with the matter, and,

liad taken evidence from the Friendly Societies. It was hoped that a.'satisfactory arrangement would' bo arrived at to meet difficulties which had arisen, and they should wait for tlio report. The Hon. A. M. Myers (Minister -in Charges) said that tho amendment aimed at taking away commissions from postal officials who got new subscribers. They enrolled subscribers who would not otherwise join the Friendly Societies, and ho held that (hey should not •stop one road which made for tho success of tljo National Provident Fund.

■Mr. .It.'Fletcher (Wolliiigfon Central) said that thero was no doubt' that canvassing for the National Provident Fund had done a great deal of injury to. tho Friendly Societies! All'the Friendly Societies was. to be put on the same footing as the National Provident Fund, so that they could continue-their good work. Ho wanted to see both go along. „ ■ Mr. 0. J. Parr said that the interests of the Friendly Societies would be better cared for if the matter was not i dealt with by small amendments. They objected to the canvassing for the National Provident Fund, but the committeel was considering that, and would make a report. The Right Hon. W.-F. Maeser (Prime Minister), in answer to several members, said that he ' understood the suggestion put forward was to the effect that a Conference might be held between tie representatives of Friendly Societies and certain representatives of the Government. He was favourable to that, and would recommend- the Minister in Charge to make tho necessary arrangements for the conference to be held during the recess: The Amendment, was negatived on the voices, arid tlie Bill put through Committee without amendment. . ■In Committee) on tho War Funds Bill, several new clauses were put 111. One authorised tho_ transfer of'funds to incorporated societies' or trustees, set up under the Act, Sub-clauses to Clause 16 gave the Government power to define the purposes for which any fund might have been raised, if a doubt existed; and gavo power for excess funds to bo utilised for other'purposes than the specified fund for which the money was raised. ■-.-■. ' , The Bills which had been put through Committee were reported to the House, read a third time and passed.

' LOCAL RAILWAYS. The Hon. W. FRASER (Minister of Public Works) moved the second reading of the Local Railways Amendment Bill. Ho said that the object of the Bill was to remedy a defect in the Act qf 1914,-which compelled, the promoters of a local railway to bo built to m- | elude within" the rating. area all . the lands contiguous to the railway, 'ft was possible that in certain circumstances this might not be necessary or desirable. .The amendment would permit the construction of a railway for a distance outside the rating district in order to junction with a Government -railway.' : Tho Minister,- in : reply to. questions, said that tho amendment would give the controlling authority no power to extend their rating area, beyond, the limits proclaimed by Order-in-Council. The-Bill did not alter in any way tho conditions under which the Government could purchase a local railway built tinder the Act. ■

The Bill was read a second time on the voices. ' ' 1 ,

MILITARY MANOEUVRES. The Hon. J.' ALLEN (Minister of Defence). moved tlio second reading of; the Military Manoeuvres Bill. Ho said that, the Bill was baked on the Imperial legislation. It had become necessary in' New Zealand before the war, but now owing to the necessity for training. troops for active ; service. abroad. it was doubly necessary. It provided for the taking of land for mflitnr.v manoeuvre's by proclamation, and it contained, ,provisions for the .restoring of fences and other property which might be damaged. ■ Tha Bill was read a second time, and referred to the Lands Committee. ,

LAND FOR SOLDIERS. The. Discharged Soldiers' Settlement Bill'was:received by Governor's Mes-sage-and read a first time. . ■ The House rose at 11 p.m.