PARLIAMENT.

Taranaki Daily News, Volume LIII, Issue 80, 13 July 1910, Page 8

PARLIAMENT.

HOUSE OF REPRESENTATIVES. By Telegraph.—Press Association. Wellington, Last Night. THE FINANCIAL STATEMENT. In the House this afternoon the Premier announced that ho hoped to bring down the Financial Statement oe Tuesday evening next. "JE. A. SMITH." Referring to the "E. A. Smith" case, Sir Joseph Ward said that certain statements had been made by a section of the Press reflecting on Sir Walter Kennaway, and the criticisms directed against the Government and himself were misrepresentation and distortion to the extent of falsity. Sir Joseph, in a lengthy statement, quoted numerous letters in reference I' 6 the case. Briefly, the correspondence showed that Mr, Smith had been originally appointed tc a position in the High Commissioner's office as emigration officer under Dr, Featherston. Subsequently, when the system of assisted immigration was dis continued, Mr. Smitk was appointee* as Government shipping agent, under the signature of the late Sir John Hall, whc was then Premier, and during >Sir Ju lius Vogel's term of office as Agent General. That appointment and th< shipping rates then agreed on had con tinued without interruption and withoul alteration up to date of the present Go vernment taking over the shipping busi ness itself in October last, on the recom mendation of Sir Joseph Ward himself Some few years ago Mr. Smith retiree from the business, but before doing se he had taken Mr. Kennaway, jun., inte partnership, while he himself retained s five years' interest in the business. Sii Joseph Ward said that on his last v*sM to England he had, in consequence ol suggestions made to him by an experi enced man in London that New Zealanc should undertake its own shipping busi ness, recommended that this be done No fault had been found with the Higt Commissioner's office in connection wibl the conduct of shipping business, but i( was found that a saving could be effected by the new arrangement. Mr, Smith was entitled to receive, in common with other shipping offices, by way of commission, a bonus of 16s per aeiult passenger booked for New Zealand. In addition to this, Mr. Kennaway received 4s per adult from the Government in consideration of correspondence and work done in connection with arranging berths and assisting emigrants generally. The amount of the bonus for assisted emigrants during 1906 received by Mr. Smith was £674 17s 3d, of which Mr. Kennaway received £473 17s 3d, the balance being paid to other agents who had introduced passengers. In 1-907, the amounts were £503 and £403 respectively. In addition to the above he received from the shipping companies commission amounting in the years 1906-7-8 to £2459. Against these figures had to be set the expenses of the staff of 18 clerks and rent of offices. In no case did Mr.; Smith receive a bonus and .commission on passengers introduced by other agents, who were afterwards declined by the Commissioner. In regard to freights,' Mr. Smith received 10 per cent, for primage, 5 per cent, going to the broker, and the remainder to the shipping agent. Continuing, the Premier declared that the imputations against the Hon. W. P. Reeves and Sir W. Kennaway and his son were entirely unwarranted. - -All the talk of mystery and secrecy was directed against the Government. The whole • outcry was made for political purposes. It had yet to be found that the present; system would result in enormous savings as I alleged. He moved that the correspondence' lie on the table. Mr. Massey, replying to the statement that the Opposition Press had worked up the Smith affair with the object of attacking the Government, said some of the independent papers had" taken an interest in the subject. Much of the information given by the Premier was beside the point, and much Of it ought have been before the House long ago. Had this been done, the unfortunate discussion on "Smith" might never have arisen. The whole trouble arose out of the fact that Mr. Smith, the Government's shipping agent, had ceased to exist, and his place had been taken by a son of the most important official in the High Commissioner's office. The ar-! rangement whereby Mr. Smith actea as shipping agent for the Government ap-: peared to him to be highly improper.' It would be more satisfactory to do! away with sMpping agents altogether,) and the round-about system of conw ir'ssions and rebates should be abol-' ished. I Mr. James Allen could not agree that! there had been no secrecy regarding Mr. Smith, for information had bee-.i refused to the Hon. Mac Donald in the Upper House ia. 1907-1908. The debate was interrupted by the 5.30 adjournment. In the House this evening, Mr. Fisher, in continuation- of the debate on the Smith correspondence, said no exception could be taken l to Mr. Kennaway's action, but the Government was to be blamed for reticence and prevarication dn connection with the matter. One

letter had not Been laid on the table. He asked the Government to lay .before the House a return showing the prices obtained for iron. Mr. 6. W. Russell declared that base insinuations underlay the Opposition Press criticism of the Smith affair. The whole affair looked quite different, after the Premier's explanation, from what it did when dealt with by the Press. Mr. Herri'es said the affair revealed an extraordinary ignorance on the part of the Minister in regard to matters connected with his department. The statement by the Premier that an important letter from the Agent-General had gone astray was most disquieting. He regarded the arrangement whereby Mr. Kennaway, son of the principal officer in the High Commissioner's office, took over Smith's business, as improper. Mr. Taiylor congratulated the Premier on the complete reply to the charges of

impropriety in regard to the Smith iklVaiv.

Messrs. W. C. Buchanan and R. A. Wright also took part in the discussion. Sir Joseph Ward, in replying, said tli.it never for a moment hail be belreved there was anything improper in connectionwith the Smith affair. Regarding the letter despatched by the Hon.W. P. Reeves in September, 1000, this Was due at the time when he was absent from Wellington. Correspondence from the Commissioner's office was opened by the secretary to the Cabinet. The Premier drew the secretary's attention to the fact that he had not seen the letter, and a reply was received that it had not come to hand. The motion was carried.