STATE ADVANCES.

Stratford Evening Post, Volume XXVII, Issue 70, 22 July 1915, Page 6

STATE ADVANCES.

MR WILFORD’S AMENDMENT BILL.

SHOULD BORROWERS INSURE IN STATE OFFICE? Per Press Association. Wellington, July 21. In the Lower Houose yesterday, Mr T. M. Wilford moved the second reading of the State Advances Amendment Bill. He explained that the Bill re-enacted a clause of the Act of 1009, which was repealed by the Act •of 1013. That clause provided that if one branch of the Advances Office trails ferred to another branch funds not immediately required, a statement of, such transfers shall be submitted to Parliament. His desire was 'hat such information should be available so as to enable the. House to ascertain ex-

actly the state of any State advances account. TV secnitf clause of the Bill provided that, ail borrowers from the St atv Department should he compelled to insure in the State Office. Ho explained that under the Ward Government it-iyas compulsory upon borrowers to insure in flip State Office, but tbp present Government modified that condition, giving borrowers the right to insure in any office. He gave reasons why the. State. .Office . should he supported, and said it was admitted tlui.t that office had lost £3OOO in.premiums. in one year owing to changes made by the present Government. Mr Massey raised a point of order, and asked if it was competent tor a private member to introduce a Bill compelling persons to pay money into a State department.

The Speaker said he would take time, to consider the point. There was, however, no need to stop the Bill at this stage. t .- m -i ■

Hon. Jas. Allen could not see that the information asked for was of any value. With regard to making it compulsory that all insurances should bo effected in the State Office, he asked .would the lion, gentleman support a proposal that all, risks offered should be accepted by the State? All the largest offices gave borrowers the right to insure as they directed, or in some reputable office. Then there w ere - the inntual offices, established by the farmers. If the lion, member’s proposal was agreed to, these institutions might fiave to close. He, could, not support the proposal. Sir Joseph Ward said that when the State Fire Department started there was' a combination of other offices, and so hostile were they to the State Office, that they made a reduction of 33 1.-3 ppr cent, in premiums, so the Stale 'department, could not effect reinsurances until the Section Government was able to do that through London agencies. The department was not started with a view t,o crushing out other offices, hut to control rates. Personally, he could see no reason why transfers made in the Advances Department should not be disclosed to Parliament. He would support the Bill. Mr A. S. Malcolm said the settler should have freedom to insure where he pleased, and lie hoped the House would uot he a party to tyrannise over him.

Mr G. V. Pearce said that the Hill was an attempt to demand a premium of 8g Id from farmers when they could get it from their co-operative associations at 6s 4d. This would kill cooperative f associations, and ho would oppose the Bill.

Mr A. H. Hiudrnarsh said that no class was so pampered by the State as the farmers, and they should seek to repay that kindness by helping the departments of State that help them.

Mr J. B. Mine said that it had been said the finders’ mutual associations took premiums at a lower rate than the State Office, hut it was generally known that there was a contingent liability attached to these mutual policies. It was true no one had been called upon to pay that liability, hut it was there. Mr k. AI. fsitt said that no honest square-dealing farmer would regard the provision of the Bill as unfair.

Messrs T. A. Field (Nelson) and C. A. Wilkinson opposed the Bill, and Mr J. Payne spoke in its support. Dir Massey said he could not support the Bill as a whole, because it encouraged monopoly, and monopoly, even if it favoured a Government (*epartment, was wrong. If passed into law it would prejudicially affect shareholders in farmers’ mutual fire associations. He quoted figures to show that the State .Department had made annual increased, profits under the present Gov^Vpment.

Mr G. W. Russell remarked that there was apparently a process of evolution going on amongst members of the Reform Party. If the Premier was prepared to use the State lire Office for a further attack on private offices lie-Avon Id he doing great’public service. He condemned the system of paying honus'es l<r fire offices. ihe progress made by the State Fire Oeparatment was simply due to natural evolution, and did not imply better management. Hon. W, H. Herries defended the change that had been made in dlowing borrowers to insure with outside offices. The Debate was continued by Messrs G. Witty, K. Newman. ,1. Anstey, A. Harris. C. H. Poole. * Iff. Thacker, and P. Webb, till the supper adjournment.