NOT ENOUGH MONEY

Dominion, Volume 14, Issue 36, 6 November 1920, Page 8

NOT ENOUGH MONEY

LOANS FOR LOCAL BODIES DIFFICULTY ABOUT RATES OF INTEREST Tlie difficulty experienced by municipalities in borrowing money at 51 per cent., as illustrated by the position of Hamilton Borough, -formed the basis of a question, which Mr. J. A. Young (Waikato) asked tlio Prime Minister in the House of Representatives yesterday aftornoon. The council had recently 'been authorised, he said, to raise a loan for extension of the sanitary-and drainage systems. He had l'cccivcd a telegram stating that it was proving impossible to l'aise the money at the rate of interest. The work was Absolutely necessary, and the council asked for "authority to raise the money by p.aying at least six per cent. Mr. Massey said that • lie would bo very glad to look into the difficulty. Ho had received communications from other local bodies on the same lines. The difficulty w.t6 that there were so many applications by local bodiesfforr r loans that there was not enough money to go round. A day or two ago one of the Treasury officials had called his attention to the fact that applications from local bodies for loans totalled .flO.OOO.flflO. nnd said .that it was impossible to find the money for them. This, was in addition to loans in connection with which promises had been made. The position, added Mr. Massey, was that the local bodies wore competing one with another for the money in the country. If that position continued instead of money being available at 5} or C per cent., it was going up to 8 or 10 per cent., and that would not be good for anybody. He wished'to inform the local 'bodies, the members, and tlio country of the position. Borrowers should attempt to remedy it by deferring all the less urgent works. There waa not enough money to go round among those who wanted it, nnd there was not likely to be for Another six months.--SHORTAGE ~07 HOUSES AND THE CAMP HUTMENTS. P. Frnser (Wellington Central) yesterday suggested to the Minister of Labour that if it was impossible to find permanent housing for the people who were homeless at the present time, the Hutments at Trenthani and Featherston Camps should be used by the Department of Labour to provide shelter for Wellington families. Mr. Eraser told the House of a woman who, though about to enter St. Helens Home, had to tramp the streets' of this city, in search pi' a place for her family to live in. ' The search went, on up to the very time sit which she entered the hopie, and was resumed again us soon as she came out. • The Minister (Sir William Ilerries) said he was quite aware of the conditions ..-created by the housing shortage. Wellington appeared to bo suffering particularly badly. His Department was endeavouring io formulate some scheme under which relief might, be granted. The trouble was that if provision was made for the needs of the peoplo of Wellington, and not for those of the peoplo elsewhere, the population of other places would tend to dock to Wellington. He would make inquiries of the Minister of Defence regarding the proposal to use the huts at Trenthani and 1 Featherston for temporary housing; but lie understood that the 'Immigration Department had first call upon these lints, in case they were needed for immigrants I brought out from the Old Country. Ho would be glad .to inform the member I of anything that it was found iwssiblo to do.

£50,000 FOR PENSION INCREASES AS -MUCH AS THE COUNTRY CAN AFFOIID. ' The announcement that the 'Minister of Finance was allocating for the needs of illici. Minister of Pensions the sum of JIoUIOOO, was alluded to in the House yes. tcrday by Mr. 11. Poland (Ohinemuri), ivho asked whether the amount named was nil that the Government proposed to divide among the various clauses of civil pensioners in the country. The member said that to givo the old-age pensioners alone an increase of ss. ii week would requiro tilie payment of a sum far in excess of .650,000, and he submitted that .£50,000 was a ridiculously small amount. The Primo Minister said that it was absolutely impossible' for him to find money on the scale that the member suggestctl'. It was no uso attempting to do it. 110 was not going to assist in running the country into financial disaster, unl that was where the matter would end if the requests made on all sides were acceded W>. He wished Parliament to be as economical as possible in the expenditure of public moneys at prevent. Ho was doing all he possibly could, lie bad not yet seen the proposals that the Minister of Pensions was putting forward for inclusion in the Finance Hill, and ho could not suy exactly on what day the Bill would be ready. JUDGE STRINGER'S DECISION AND THE LEGISLATION YF-T TO 813 INTKODUCBD. Mr. 11. E. Holland. (Buller) yesterda.y asked tho Prime Minister v/hether thn important legislation that he (Mr. Mas-t-ev) had said was yot to be introduced this session had to do with tlie latest bonus to bo granted Hie workers h.v th<> Arbitration Court. "Mr. Massey: Tlmt question, of course, I cannot answer. The matter is sti'l under consideration, and I . hall probably not be able to make a definite announcement till Monday, Tuesday, or Wednesday of next week. Mr. Holland: Then it has nothing w do with tho Arbitration Court? Mr Miussey: I. have not said so. H may have, or it may not. If the hnn. gentleman has it in his mind that it is intended to go back upon tho decision of Mr. Justice Stringer, he can get "id of that idea. That is not intended. Reporting to the House ye«te'dny. 'Hi" Defence Cmnmitlc" reeoini"eiul<'d (luit 'be Government should consider llie petition of Duncan Maopherson, cf Wellington, who claimed to have In en injured doing dully on tho hospital ship Mnrainu, .and: asked, to ,l>6 erontod a pension.