PARLIAMENT

Taranaki Daily News, Volume LIV, Issue 312, 29 June 1912, Page 5

PARLIAMENT

LEGISLATIVE COUNCIL. By Telegraph—Press Association. Wellington, Last Nigtht. The Council met at 2.30. On the motion of Sir. W. Steward, his motion for an Address-in-Reply was postponed until the next sitting day, and the Council adjourned pending the report of the Imprest Supply Bill from the other chamber. The Council will consider the Imprest Supply Bill at 10 a.m. to-morrow. HOUSE OF REPRESENTATIVES. The House met at 2.30. Seven days' leave of absence was : granted to Mr. Hemes. A number of Bills introduced by private members were read a first time. An Imprest Supply Bill for £714,000 was introduced by Governor's message. . Mr. Massey said that he had no desire to hold up proceedings, but lie strongly objected to the delay in bringing down the Imprest Supply Bill. Parliament should have been called together long before the end of June. He hoped that the House would be called together earlier in the future. The Prime Minister replied that Parliament had been called in the ordinary way. There had been no departure from the course pursued for years. Mr. Jas. Allen said that the House should have been called together earlier. The Prime Minister had never met the House and did not know Parliament's opinion of him or his colleagues. Mr. Massey asked whether the Minister of Finance would five any information in connection with the £4,000,000 loan. Mr. Myers, replying, said that he was not surprised at Mr. Masscy's request. He had been perambulating the country endeavoring to educate people into the idea that the Government was practising secrecy about financial matters. The Government had nothing to hide. He asked the Reform Party to remove all party feeling from financial matters, and treat them in the same way as defence matters had been treated. He informed Mr. Massey that the prospectus was never issued at this end. One hundred and twenty cablegrams had passed between here and London since November Inst. No member of the Cabinet would allow a charge of seereev to be made against thein. They intended to take the House into their confidence. It was impossible to give details of loans before they were raised. The loan was necessary to meet loans maturing and expenditures authorised by Parliament. From November last till April 1 £2,255,!500 of loans had matured. One and i a half million was due on April 1. and ;t'he balance was for advances to settlers, advances to workers, naval defence, nubile works, land settlement. The loan was raised at f!9, the underwriting costing one per cent. The market at the time the loan was raised was not favorable for issuing stock for a loan for a long period. Any finance Minister would have done just what he had done. The loan would cost £3 12s for interest, independent of discount. ! Mr. Massey said that the Minister of j Finance had given no information. He resented the inference that he was actu--1 ated by party spirit when asking for information. He. would always endeavor to get all the information he and the peonle of the country were entitled to.In his opinion a four per cent, long-dated I loan was more economical than a short one. Mr. Myers must be in possession of -the prospectus. Tt has been published in all the English papers, and the information that had been supplied to the people of England should be available for the neople of this country, who had to find the money. "He asked if any concessions would be given to investors for conversion. Mr. Mvers: "No." Mr. Massev; "Well.-' that makes it worse." Tn his opinion the loan would cost five per cent. Tf the Minister had gone on the market thre" months ago with a long-dated loau it could have been raised. The Prime Minister said thet the Wt that could be done had been done. One would suppose that thev had done something carelrssly or stupidly. SurcIv their advice from London was reliable. They had nothing to hide, and would give all information when they had it. There w?s no seereev. Mr. Allen said that there was too much secrecy after lonns hud been floated. He asked und n r what authoritv had any money been raised for naval defence. This money was provided for in the five million loan of last year. Sir Joseph Ward said that the Government could not raise a four per cent, loan in London without underwriting. He did not believe that the Finance "Minister could have issued a long-dated four per cent loan. If he had tried it would have cost more in the long run if he had been successful. Mr. Fraser said that short-dated debentures were ruinous to the country, and if care was not tiken investors would demand them in all cases. Mr. Herdman si.id that the financial methods of the Government were in a desperate state. The last loan was probably imperative.

Mr. Wilford held with previous speakers that the question of loan-raising should not be dealt with from a party standpoint. Tf the Government had been advised that a short-dated loan was the best under the circumstances, it was quite right in following that course. The Minister should have the loyal support of the House. The House adjourned at 5.30. THE EVENING SESSION. The House resumed at 7.30. Sir Joseph Ward continued the dobate on the Imprest Supplv Bill, and referred the members to a Parliamentary paper in connection with renewals, which, he said, gave the absolute facts. He averred that members were either misleading themselves, or bad not a thorough grasp of the situation when they gave utterance to some of the statements rncentlv expressed. He said that had his party had a decent majority behind it. he would probably have authorised a loan of four millions. He [arranged temporary advances for his successors in office of one million in England and one million from the Bank of New Zealand. This, with the surplus, left £2,800,000 to carry on the work of the country. Mr. Massey said that if bis party bad chosen to stick up the Imprest Supply Bill they could have had. in his opinion, a majority of the House to support them, but they did not do so. He had never once discussed financial matters for the purpose (if gaining any party advantage. The Opposition had saved the country thousands and thousands of pounds by tlieir criticism and keeping the Government up to the mark. Financial people at Home were reaping a rich harvest out of the mistakes made here. He quite understood that the country could not go on without borrowing. Mr. Eraser advocated the setting, up of a committee to examine into every detail of every loan. Tl should look into the whole accounts of the country. Mr. Myers, replying, said that the Government, would welcome the fullest criticism of all matters with regard to the four and a half million loan. He stated that if it had been floated at four per cent for 30 years at par, it would work out at £<l.'2< o'/,d. The Bill was read a third time and passed. The House rose at 9.45. ...