LOANS TO LOCAL BODIES.

Taranaki Daily News, Volume LV, Issue 146, 7 November 1912, Page 5

LOANS TO LOCAL BODIES.

. . DISCUSSION IN THE HOUSE. PROPOSED LOCAL -GOVERNMENT " BILL. By Telegraph—Press Association. Wellington, Last Night. The Chairman of the Public Accounts , Committee brought up the report ®f the committee of inquiry into the workings of the State Guaranteed Advances D&I partment. > Mr. Allen moved the second reading of the New Zealand State Guarantee! Advances Amendment Bill, vhich provided that loans to local bodies wculd have to be paid for at the rate the money cost to raise, plus administration expenses. The Department, he said, was in a bad state, having made commitments for years ahead at ?■% per cent., irrespective of what the money cost the country. When he assumed office,, he found commitments to 1914 at per cent. It had been said that the post office had promised a million arid a half next yee.r for loans to local !;.>dies, but he could find no record of ..ueh a promise. He could not see where the money was coming from. The previous administration had brought the Department to a standstill by its reckless me+i ods. The cutting down of the maximum lorn? to £SOOO had been occasioned by the wild commitments of his predecessors in office. They proposed next session to bring down a Local Government Bill, which would provide for proper classification of local bodies, according to their needs and requirements. They intended to do away with the roids and bridges vote. Sir Joseph Ward contended that the Minister dare not attempt to administer the Act without making committments for two or three years ahead. The Minister's proposals would mean a loss of £735,000 in 10 years on the consolidated fund in interest. He predicted that there never would be a Minister of Finance, who would ask the local bodies to take a lump sum if the money was required for a period of years. Mr. Mac Donald defended the administration of County Council affairs, and said that the whole of the criticism recently levelled at the Department was intended to discredit the party previously in power. He claimed that every transaction entered into by the Department had been absolutely satisfactory. Mr. Hine quoted frojn the return presented to the Enquiry Committee, with a view to showing that the expenditure was abnormal before the election. The £SOOO limit was put on immediately after because of the plunging of the Ministry. • Mr, Allen, in replving. said that there had been no criticism on the 1 Bill, but personal attacks on himself. He aftked was a maA when he came into office and found himself in a difficult position to say nothing of the wrongful administration. He maintained that the administration of the Department had .been thoroughly unsound. The previous Minister' had never taken any steps to make provision for loss. The second reading was agreed to on the voices.