POLITICAL JOTTINGS.

Hokitika Guardian, 13 February 1922, Page 3

POLITICAL JOTTINGS.

STATE ADVANCES FUNDS. An important addition to the Finance Bill is the provision for the establishment of a reserve fund for the State Advances account. At present a sinking fund of 1 per cent of the total loan money is set aside each year and. invested with the Public Trust Office, in. addition to the contribution required from the office to the Public Debt Extinction Fund. It is now proposed that the sinking fund shall not be paid, but that the whole of the profits, after contribution to the Public Debt Extinction Fund, shall be placed in a reserve fund, which shall he used for the same purposes as the advances moneys. PIUVATE SAVINGS BANKS.

When the Prime Minister was explaining a clause in the Finance Bill, which raises the limit of interest-near-ing deposits in private savings banks from £IOO to £2OO, Mr C. E. Stathnm asked: “Could you not make it £300?”

“No, thet'e is a difficulty abeuf that,” replied the Prime Minister, and he went on to say, with a smile, “I am inclined to come along some day and take over the private savings banks.” He added that he had consulted the Treasury and considered the £2OO limit would be sufficient. He recognised that savings banks had done good work, particularly in Auckland, and had been useful to local people and to the Government. While their business would be very useful to the Government, he did not intend to interfere with them. CO-OPERATIVE CONTRACT REDUCTIONS. Arising out of a question relating to a small strike of tunnel workers at the Mangahao hydro-electric work, the Min ister of Public Works explained to the House that the retrenchment scheme, involving a reduction of a shilling a day to wage workers, would affect co-opeta tive contracts to thait extent, a proportionate reduction being made in the contract rate as from February Ist. He would not make the change during January, as this would We been a breach, of faith, but as these contracts were adjusted monthly he could do so for the present month. The tunnel workers, be added, drew between 32s and 88s a day during the period covered by their past pay.