LOANS TO LOCAL BODIES.

Taranaki Daily News, Volume LV, Issue 129, 18 October 1912, Page 7

LOANS TO LOCAL BODIES.

JTJRTHER EVIDENCE. By Telegraph—Press Association..,. Wellington, Yesterilay. Mr. Poynton was further exaniined to-day by the committee appointed to enquire into the allocation of loans to local bodies under the State-Guaran-teed Advances Act. He stated that under the Act the sinking fund was paid as part of the instalments; and capital and interest were paid in full. The only "loss under the present system resulted iron: the non-investment of funds, as against a( loss of £2,300,000 under the old system.

Sir Joseph Ward: While I was Minister of Finance, was there at any time any suggestion of pressure on my part, direct or indirect, to induce the board to advance money? j •

Witness: No. , In reply to the Hon. J. ister of Finance, witness said that, 'in view of the Solicitor-General's opinion the board would not be very' ready to lend money until it had funds avail-' able. The board this year had borrowed £252,000 out of the & 1,000,000 which it had the right to borrow. He . saw no difficulty in legislating so as to! provide that local bodies should pay ithe increases rate of interest at which ,thc Government had to borrow thes iponey.

Hon. Mr. Allen: Has any loan been borrowed in England under the State Guaranteed Advances Act? ! ~ Witness: No. , Hon. Mr. Allen: Do you think there ever will be one? - Witness: No.

Henry Ivember, a member of the board, replying to Sir J. G. Ward, said that he had never been approached by the' Minister regarding loans. There ' had been no favoritism whatever.' If a loan of £IIO,OOO had not been granted to the Timaru Borough Council, tlx? Board would have made a loss of £IOOO, owing to the non investment of money. Tie was the only independent member of the Board, and he felt that what was said in Parliament about political influence impugned his honor. Reinuera never received a penny before the election. The Mayor of Spreydon abo gave, evidence.