STATE ADVANCES.

Taranaki Daily News, 22 July 1915, Page 3

STATE ADVANCES.

SIIon.l) »(>«!'.'AVKKS INS URIC I.Y STA'iiO OKFKT.? MR. \V I (.FORD'S AMKXDMKXT HILL. By Telegraph—Preps Association. Wellington, Lust Night. <»<' Lower House yesterday, •Mr. T. M. Wilferd moved the .second reading of (If State Advances Amendment Kill. He <\pl:iined that the Hill l'e-enacted a clause of the Act, of llKlfl, which was repeal) d by the Act of l!)l:i. That clause pro\ iilod that if one brunch <>t the Advances Office transferred to another branch funds not immediately required, a statement of such transfers shall be submitted to Parliament. 11 is desire was that Mich inf.Mniation should be available so as to enable (he [louse to ascertain exactly the state of r.nv * State advances account. Th" second cla.isc of the liil! provided that all borrowers from the State llepartmei!,: _ should be compelled to insure in the State iMice, lie explained that under "I the Ward Government it was compulsorv upon borrowers to insure in the Still? Cilice, but the present 'iovernmcnt modi ficd *Jial condition, givimr borrowers right to insure in any oilice. lie .'_'a,v reason- v liy the State Oilice siiould be siij ported, and said it was admitte.l that that Inee had lost .CMOOO in premiun s in one year owing to changes made bv the prcser.t Government. Mr. Masscy raised a point of order, and asked it it was competent for a private member to introduce a Bill compelling persons to pay money into a Stale department. The Speaker said he would take time "] to eonsidi r the point. There was, however, no need to stop the Ilill at this J stage. Hon. .las. Allen could not see that the ' information asked for was of any value. With regard to making it compulsory that all insurances should be effected ill the State Office, he asked would the hon. gentleman support a proposal tint all risks offered siiould be accepted by the State? All the largest offices gave i borrowers the right to insure as th 'v I directed, or in some reputable office. Then there wen; the mutual offices, established by the farmers. If the hon. member's proposal was agreed to, these institutions might have to close. ilc could not support the proposal. ] Sir Joseph Ward said that; when the State Fire Department started there I was a combination of other olliees, and so hostile were they to the Stale Oilice that lliey made a reduction of US 1 -,' i per cent, in premiums, so the State Department could not ell'ect reinsurances unnl the Seddon Government was able to :lo that through London agencies. The department was not started with a view fo 1 crushing out other offices, but to con- , trol rates. Personally, ho could see ! no reason why transfers made in the | Advances Department should not be disclosed to Parliament. lie would support the Kill. j Air. A. S. .Malcolm said, the settler should have freedom to insure where lie pleased, and lie hoped the House would not be a party to tyrannise over him. Mr. G, V. Pearce said that the Kill was an attempt to demand a premium >f 1 | 8s 4d from farmers when they could ; ■ get it from their co-operative associa- | ; tions at lis 4d. This would kill co-opera-tive associations, and lie would oppose ' | the Bill. ' J Mr. A. H. Ilindmarsh said that no '] class was so pampered by the State as i the farmers, and they should seek to _ I repay that kindness by helping the leJ . partments of State that help them. ill-. .1. I!. Hine said that it had been said the farmers' mutual associations j took premiums at u lower rate than the State Office, but it was not generally ' known that there was a contingent iin--1 bility attached to these mutual policies. I It was true no one had been called upon . to pay that liability, but it was there. t Mr. L. M. lsitt said that no honest ~ square-dealing farmer would regard tie.' , provision of the Bill us unfair. Messrs T. A. Field (Nelson) and C. Wilkinson opposed the Bill, and Mr. J. 1 Payne spoke in its support. " Mr. Massey said he could not support the Bill as a whole, because it encouraged monopoly, and monopoly, even if ' S it. favored a Government department,, I >was wrong. If passed into law it wouldprejudicially atfeet shareholders in farmers' mutual fire associations. He quoted ( j figures to show that the State Depart- ' went had made annual increased profits . under the present Government.. \ Mr. ft. W. Russell remarked that the> - o 1 going on among'st members of the Reform Party. If the Premier was propared to use the State Fire Office for a further attack on private offices . ho, jl would be doing great public service. He ( l condemned the system 'of paying bonuses to fire offices. The progess made by the , State Fire Department- was simply du-.> j to natural evolution, and? Hid not imply better manageineiit. I Hon. W. , 11. Herries defended the a change that had been made in allowing j. borrowers to insure with outside offices. t The debate was eontim-ed by Messrs G. Witty, K JvVwman, <T. Anstey, A. Harris. C. .IT. Poole, Dr. Thackcr, and P. Webb till the supper adjournment.