LOANS TO LOCAL BODIES.

Taranaki Daily News, Volume LV, Issue 130, 19 October 1912, Page 8

LOANS TO LOCAL BODIES.

FURTHER EVIDENCE. By Telegraph.—Press Association. Wellington, Friday. Further reference to the Reinuera loan was made at to-day's Parliamentary enquiry into the allocation of loans under the State Guaranteed Advances Act. Arnold Williams, foreman-inspector of ' the Remuera Road Board, called by Mr. James Allen, said that on December 13, when the general election was proceed- *" ■ ing, the chairman (Mr. Gorkwell) of the "Road Board addressed the men employed on the works, advising them to support the then Government, aa if the Government went out, the money advanced would be very much reduced. No particular candidate was mentioned, but Sir John Findlay, a member of the Government, was standing. At the conclusion t of the speech, in listening to which in the rain the men had become drenched, the chairman suggested that they sh/ndd go home, and be paid as if they had been working. It was not customary to pay: men except for the time worked, but. the Board agreed to the payments. Replying to Sir Joseph Ward, witne» said that Mr. Corkwell was merely expressing his own opinion as to the wisdom of voting for the Government. Answering a question by Dr. Newman, witness repeated Mr. Corkwell's statement, that if the Government went put of power the loans would be reduced.

Sir Joseph Ward: A very wise tiling to say. That is just what ha* happened. The chairman: Who put in the £SOOO limit?

Sir Joseph Ward: That was before the election.

Witness said that about six of the men on the works were in the Parnell eleetorate.

Hugh Wilson, engineer to the Remuer* Road Board, said that Mr. Corkwell toW him that he had given the men a holiday on pay ,and that there would be no difficulty about arranging fo:: the payment. Mr. James Allen: Did he say how it would be paid for? Witness: Well, it mav have been in a joking way, but he said that Sir John Findlay would pay for it. Witness added that two men not at work were paMI that day. The pay so far had been charged to the Road Board. Mr. Allen: What were those men doing?

Witness: Canvassing. Mr. Allen: For whom?

Witness: Sir John Findlay. Sir Joseph Ward: Do you suggest that Mr. Corkwell did it at the request of Sir John Findlay ? Witness at first replied that the chairman did not do it from kindness of heart, but when the question was repeated he gave it a direct negative. Alexander Scholes, chairman of the Waitomo County Council, said his Council had received a loan of between £25,000 and £28,000 from the Department. This was £SOOO less than the amount applied for. Xo political influence of any kind was used to obtain the loan.

Sir Joseph Ward gave evidence and said that in 1909 he prepared a system to provide for advances to local bodies up to a million a year. Legislation to this effect was passed in 1909. He gave his reasons for making the ohnnge. It was necessary to expand the system whereby money might be advanced to loeal bodies, at the same time removing some of the burden of the loss of capital from the Government. When the State Guaranteed Advances Act was introduced it was intended that it should apply to 'boroughs as well as other bodies. In going through the records he could find no division or statement against that proposal by any member. Sir Joseph proceeded to read from the debate on the Bill, but was ruled out of order. Bit Joseph dissented from the ruling. He emphatically denied the suggestion of political influence in connection with loans and regarding statements this morning concerning Dr. Findlay. Ho wished to have Dr. Findlay recalled to give evi* dence, and also Mr. Corkwell.