LOANS TO LOCAL BODIES.

Stratford Evening Post, Volume XXXIV, Issue 51, 24 October 1912, Page 5

LOANS TO LOCAL BODIES.

(Per Press Association.) Wellington, October 24. The Loans to Local Bodies inquiry was resumed to-day. Sir Joseph Ward, giving further evidence, said, he had never at any time taken any action to induce the Board to favourably entertain or consider a loan. He had always laid it down that the State Departments should carry on their business as business concerns, apart altogether from a Minister. The Hon. Mr Fisher, called by Sir Joseph Ward, was asked if he had made a statement in the House suggesting that a loan of £30,000 was granted to Taihape for political purposes prior to the by-election for Rangitikei.'. Witness said he was not aware that the Board had not yet made an advance to the borough of Taihape. Sir Joseph Ward: I think you will find that it has not made such advance. The Hon. Mr Fisher said he was aware that the Advances Board was not in existence at the time of the by-election, hut he did know that a sum of £30,000 was made by the Government to the Taihape borough shortly before the election, and that fact was known at the time of the election. About £32,000 had been advanced to Taihape between 1908 and 1911, and he considered that that had considerable influence on the election.

Sir Joseph Ward: Are you aware that of that amount £20,259 was advanced by the Bank of New Zealand?

The Hon. Mr Fisher said he was not aware of that. The loan was passed by the law officer, and debentures were signed by the Treasury. His political experience showed him that the practice ef the Government for many years past had been to expend money in districts which were represented by supporters of the Government.

Sir Joseph Ward: If the advances made during election month have been made to local bodies in districts opposed to the Government, would you say that that shows political preference ?

The Hon. Mr Fisher: It would depend entirely on what figures. He added that he did not intend in his speech in the House to reflect on the Advances Board, hut on the general practice of the Government. Sir John Findlay, recalled, said there was absolutely no truth in the statement that he would pay for the holiday given to the men employed on the Remuera Road works. He contended that a great injustice had been done him in not being afforded the opportunity to specifically deny the charge that had been made against him in that respect. There was no ground for the suggestion that the Remuera loan had anything to do with the election. '

Mr Poynton, Superintendent of the Advances Board, questioned by Sir ■J.Qseph Ward, said no money was lent to Tailiape either hy the Treasury or the Advances Board in 1909. The Remuera loan was overlooked at the meeting of the Board on November 6th. He had never taken any active part in politics. He had endeavoured to follow as a civil servant the old British tradition of being loyal to any Government that was in power. Replying to Mr Pearce (Patea), witness said in 1909, a loan of £3OOO was granted to the Taihape borough by the Bank of New Zealand and guaranteed by the Government under the old Act. In 1910 a loan of £21,250 was granted to Taihape by the Bank of New Zealand in the same way.