LOANS TO LOCAL BODIES.

Stratford Evening Post, Volume XXXIV, Issue 63, 7 November 1912, Page 8

LOANS TO LOCAL BODIES.

DISCUSSION IN THE HOUSE

The Chairman nf the Public Ac-j counts Committee brought up the re-| port of the committee of inquiry into the workings of the State Guaranteed Advances Department. Mr Allen moved the second reading of the New Zealand State Guaranteed Advances Amendment Bill, which provided that loans to local bodies would have to' ho paid for at the rate which the money'cost to raise, plus administration expenses. The Department,

he said, was in a bad state, having made commitments for years ahead at 3i per cent., irrespective of what the money cost the country. When he assumed office, he found commitments! to 19.11 at 3i per cent. It had been said that the post office had promised a million and a half next year for loans to local bodies, but he could find no record of such a promise. He could not see where the money was coining from. The previous administration had brought the Department to a standstill by its reckless methods. The cutting down of the maximum I loans to £SOOO had been occasioned by I the wild commitments of his prcdecesi sors in office. They proposed next , session to bring down a Local Government Bill, which would provide for proper classification of local bodies, according to their needs and requireThey intended to do a wav

with the roads and bridges vote

Sir Joseph Ward contended that the Minister dare not attempt to administer tho Act without making commitments for two or three years ahead. The Minister’s proposals would mean a loss of £705,000 in 10 years on the consolidated fund in interest. He predicted that there never would be a Minister of Finance, who would ask the local bodies to take a lump.sum if the money was required for a period of years.

Mr MacDonald defended the administration of County Council affairs, and said that the whole of the criticism recently levelled at the Department was intended to discredit the party previously in power. He claimed that every transaction entered into by the Department had been adsolutely satisfactory. Mr Hine quoted from tiie return presented to the Enquiry'Committee, with a view to showing that the expenditure was abnormal before the election. The £SOOO limit was put on immediately after because of the plunging of the Muiistrv.

Mr Allen, in replying, said that there bad been no critoism on the Bill, but personal attacks on himself. He asked was a man when he came into office and found himself in a difficult position to say nothing of the wrongful administration. He maintained that the administration of the Department had been thoroughly unsound. The previous Minister had never taken am steps to make provision for loss. The second reading was agreed to on the voices.