PARLIAMENT.

King Country Chronicle, Volume VII, Issue 591, 6 August 1913, Page 5

PARLIAMENT.

LOCAL BODIES LOANa BILL

i SIR JOSEPH WARD'S RECEP-

TION

j [ |tY tku-:<;uai'h. —i'R'-s .\»<>< iation.j I Wellington, Tuesday. ! The House met at 2.30 p.m.

Speaking on the petitions of Hohep3 Karetai and Wiremu Rauri, the Hon. Mr Herries stated he proposed /join;: into fhi' whole- question of landless natives in the South Island.

The Magistrates Courts Bill, Old Age Pension? and Reciprocity Bills

were read a third time. The second reading <u the Local Bodies Loans Bill was moved by the Hon. J. Allen. The measure largely

consolidating principal guarantee up to half a million to loans of certain local bodies which would be allowed to go on the London market. The right to do so would be subject to the sanction of the Minister.

Mr Russell said a limited guarantee would be oE little use to large bodies whose borrowings were extensive. He claimed the scope of the Bill should not be limited to country bodies. Small towns were ju<«t as entitled to cheap money as country districts. He hoped borrowers would be restricted to London]and would not deplete the local money market. The Prime Minister said the scope of local bodies loans had so widened during recent years that the system had now broken down owing to the large demands made upon it; consequently the guarantee was restricted to the smaller bodies which could take advantage of it either singly, or in a group if not individually strong enough. Speaking of the financial position of the Dominion he said there was every indication that the stringency was passing away.

Sir Joseph Ward, who was accorded an ovation said concerning the difii culty of getting sufficient money to meet the requirements of local bodies to carry on the progressive work of the country, any local body going on the London market for a loan of less than £IOO,OOO would find itself quite unable to get it, even with the State guara n tee.

Mr Macdonald urged the Government to provide money for isolated local bodies for the purpose of constructing roads and bridges. Mr Okey said special inducement should be given to large local bodies to obtaiii their loans outside the country instead of allowing them to absorb the advances of private firms. Mr Witty said the Bill would not give local bodies an assured finance. STATE ADVANCES BILL. CONSTITUTION OF BOARD. The House resumed at 7.30 p.m. The debate on the Loans to Local Bodies Bill was resumed. The Hon. J. Allen, replying to criticism said the Bill was largely a consolidating measure, the principal new feature being the guaranteeing by the State of loans raised outside the country by big bodies with a limit of £500,()0(i The Bill was read a second Line. Mr Allen moved the second reading j of the State Advance? Hill which j altered the constituencies oi' the Ad- j vances Board by removing the Minis- | tor from it The board would be com- j posed of a superintendent, the Under- j Secretary of Lands, the Valuer-Gene- j nil. and two other persons being mem- j bers of the Public Service, to he ap- j pointed by the Governor. The maxi- j mum amount the following branches j can borrow is: Advances L. Settlers. ; £l,50(),()oo; Workers branch. .ijToo,- j 000; Advances t.i Local Bodies, j £1,000,000; and provision is made or j a reserve fuund of not less than I'.n 1 ,- j 000, also for a sinking- fund. Sir Joseph Ward protested again.?; ; local bodies loans beim: made cumulative. He held that such provision would let the country m tor three or or four millions yearly. He object. d to the removal of the Minister from the board, contending that the people had no hold on the operations of the i hoard. If the propoals did go through I he was sure there would he a clamouring m :i year or so to have the system \ abolished. ! Mr Massey defended the proposal to ': alter the personnel ef the hoard. He ! desired to remove all possibility of ' political interference i'rom the. board, i He knew that scuh a thing had ex- : isted. and desired to abolish if. Losses : made in connection with loans to local I bodies wore due to the fact that the \ State had to pay a higher rate than ! that at which the money was borrowed. Mr Russell contended the Bill gave '■ power to raise ,S'e,2no.(ioo while proi fessing to be a non-borrowinu Govern i meat. '. The Minisfei should be on the j board and non-official members should j be elected by the House. i The debate continued till LLoO ; a.m. ! Mr Alien replied to criticism, and j the Bill was read a i me.