PARLIAMENTARY.

Te Aroha News, Volume XXVII, Issue 4483, 2 November 1909, Page 3

PARLIAMENTARY.

EVENING SITTING.

Wellington, October 29. Mr Allen continued bis speech. Animadverting on the clauses in the Bill referring to the loans to local bodies and securities held, it had the effect of making it more expensive for local bodies to obtain the necessary funds to carry on their works than formerly, where loans were granted at less than the rate of in-* terest than by the Government. Mr Fraser urged that settlers in Otago be granted advances for the purposes of irrigation. Mr Hogg supported the Bill on the ground that it would provide plenty of cheap money and encourage settlement and industry. He could not speak too highly of the Advances to Settlers Office, which had done more than any institution to build up New Zealand. Mr Wilford contended the Bill would do a great deal of of good, and ought to have been on the Statute Book before, in which case the recent distress arising from unemployment would have been considerably lessened.

Mr Macdonald supported the Bill. Mr Laurenson held that so long as money expended upon interest bearing works borrowing was justified. If the Bill was extended to allow loans being made to men with only small deposits to put down it would do an immense amount to solidify the country and encourage working men and struggling settlers. Mr Massey said there was no intention of making the Bill a party one. He was not hostile to it, but it would be none the worse for criticism. There was not v ery much new in the Bill except the tremendous amount of borrowing contemplated. Everything should be done to keep down the rate of interest on advances to settlers. He had been informed on good authority that people in good circumstances in towns borrowed money from the Department and lent it to settlers at higher rates of interest. Regarding loans to local bodies, he regretted the old system was to be superseded by the Bill. This was a retrograde step, and he would vote against that part of the Bill. Mr Massey, continuing, said he agreed with Mr Laurenson that the maximum advance to a worker of £350 was too low, and would support £450 as a maximum, and that a man with a family should be able to borrow a larger amount.

The Premier, replying, said there was a misapprehension regarding the position of local bodies requiring small loans. Clause 71 specially dealt with them, and the position was strengthened by the Bill. If the amount advanced to a settler was limited to £SOO this would result in increased interest charges by money lenders, and reduce the earning power of the Department. The object ofi the Bill was to provide cheap money from all classes. It was extra* ordinary that Messrs Massey and Allen should 'deprecate increased borrowing while anxious to increase the maximum amounts of various loans. regards loans to public the system provided in the Bill was hotter than that embodied in tb,e Tjoans to Local Bodies Aet. ‘ The Bill was read a second time on the voices. The rose, at 10.35 p.m.