THE QUESTION OF BORROWING.

Gisborne Times, Volume XXV, Issue 2237, 14 November 1907, Page 4

THE QUESTION OF BORROWING.

NEARLY A MILLION AND A HALF FOR WORKS.

There was brief but interesting discussion in tlio House of Representatives to-day on tho question of borrowing. It cropped up on tho Railwavs Improvement Authorisation Bill, which gives the Government power to borrow £150,000 for railway duplication works. Tho money is not earmarked in tho Bill, but Sir Joseph Ward explained that the money would be required mainly for tho Auckland-Ponroso and Dunodin-Mos-giel duplications. These were found To bo works of' considerable magnitude, -and much difficulty hail boon experienced in both lines owing to tho nature of the country through which tlio work had to bo taken. Tho Ad-dington-Rolleston duplication, on tho other hand, was through oasy country, and this money would not bo required for that'. Mu. Massey, referring to tho Bill, said this was about tho fourth Loan Bid they had lmd this session. To begin with there was tho Bill for tho million, then there was one for £200.000 for the erection of post oilices at Auckland and Wellington. This was followed by another ono for tho Hutt Road and Railways, £IOO,OOO. Now thoy had this Bill for £150,000, in all 21,450,000. Ho could not understand why tho Premier had not brought down a Loan Bill for £1,500,000 in tho first instance. To a certain extent lie was misleading the public. In adclition to these authorisations the Government had authority to Borrow under tho Lands for Settlement Act £50,000, under tho Advances to Settlers £500,000, under tho Loans to Local Bodies Act £250,000, under tho Advances to Workers Act £200,000, under tho Maori Laud Settlement Bill £50,000. Undor all tlieso authorisations, therefore, tho Government would have authority to “borrow £2,950,000, and yet that 1 was not quite all, becauso they could also borrow for tho dairy industry mid scenery preservation, which would make a total authorisation for tho .current year of about £3,000,000. The country was developing rapidly, but with this enormous borrowing responsibility was placed upon the shoulders of the Government to get tho money at tho lowest rate of interest, and to see that tho taxpayer got- value for the expenditure, so that tho credit of tho colony would not bo'injured. Tho Premier, in reply, complained that Mr. Massey’s speech was calculated to do harm. He -stated that tho whole of tho money for advances to settlers was now being obtained from tho repayment of loans and interest accumulated to tho Department, but on consultation with Mr. McNab he modified his statement to tho extent of saying that they were not borrowing more than £150,000 a year. As to loans to local bodies, ho said there were accumulations to tlio Government account for which thoy must find investment, and those accumulations were being used for loans to local bodies. In regard to tho loans to local bodies and advances to settlers no fault could bo found. As to the duplication of railways, they were not in the matter of ordinary work. As to lands for settlement, the Government was often blamed for not having still larger borrowing powers. In this case they had a good asset -in the properties acquired. Ho complained that Mr. Massey’s statements might be transmitted over tho cable to Loudon for the purpose of creatiug alarms, and just at present the financial position was of a very dangerous character.