BREACH OF PRIVILEGE

Wairarapa Age, Volume XXXII, Issue 10712, 2 October 1912, Page 5

BREACH OF PRIVILEGE

SIR JOSEPH AND THE DOMINION. ADVANCES TO LOCAL BODIES. S 1 (By Tfttytu,,..!, — zress Association.) ! WELLINGTON, Last Night. I In tho House of Representatives to- j •night Sir Joseph Ward raised a question of breach of privilege in connection with an articlo in the Domin- [ ion newspaper of yesterday, . which he declared contained .statements absolutely contrary to fact. It was, he said, a singularly remarkable thing that a reflection should be cast on the State Guaranteed Advances Board and public officers by a Minister of the Crown. The charge was calculated to injure the credit of the country. He hoped the Minister would agree to refer the matter to the Public Accounts Committee. If that did not satisfy the Premier he would be willing to agree to a committee nominated from the other side of the House, or to an inquiry by a Judge. He averred that the Counties, Road Boards, and Town Boards had received as much in one year as the others had in three. The article in the Dominion had implied that the State institution was, at the last election, used for political purposes. In the Premier's constituency a Board had received more per head of population than had Timaru. Two boroughs i,n the Minister of Railway's district had received loans. Was that, he asked, spoils to the vanquished? The money had gone to Onehninea, New Plymouth, Waimate and Eden, all of which were represented by his political opponents. Members of the Govern-. ment were endeavouring to convey the impression that Councils and Road Boards had been starved, and the available money squandered for political purposes. There was not a tittle of truth in the statement. The Counties and "Road Boards bad received more in the last two years than they could under the old system in fifteen years. A Board in his electorate had been refused a loan. Ho wnntecT'the matter to be cleared np under oath, and if the charges were proved, the officials concerned should be swept out of office. He moved that a breach of privilege had been committed by tho Dominion, in the publication of an articlo dealing with loans to local authorities and that the same be referred to the Public Accounts Committee, with power to call for persons and papers, and to inquire into all matters in connection with tho' said loans. Mr R. McKenzie seoonded the tnotion. THE MINISTER REPLIES. The Hon. J. Allen hoped the Prime Minister would accept that portion of tho motion relating to an investigation of the affairs of tho Loans to Local Bodies Department. His grievance was that the previous Ministry had entered into a policy of plunge. HV> had to face £650.000 of commitments which he had not made, and there was nothing coming in. All that was available was £27,550. He did not desire to shelter himself behind the Department. 'lt was not their fault, Tho Deoft'rtment had +0 CCify out the law. But v;ho :-a-.o ■j Hie lav" ? His coir.plaint was th.vl ( | the previous Minister of Finance had ,

approved of £2,831,000 in. tro yen-

The result was that these bodies vrer<* j;-»w coming to him for tho money, and he couu? ££>t give it them. A rich borough like Timaru should not come on the State while the State was losing on the transaction. The charge was made against the legislation, a.nd the effect'of that legislation. Payments to bodies just before elections had an unwholesome effect, and may have affected the elections. He quoted the following letter from the State Guaranteed Office, regretting the statements made in the House. , THE BOARD'S LETTER. Guaranteed Advances Office, Advances to Settlers Branch, Wellington. 30th September, 1912. .Memo for the Hon. Minister of Finance, Wellington,

At to-day's meeting of the N.Z. State Guaranteed Advances Office ' Board, the following resolution was I passed :—This Board regrets the ' statements made in the House of on last Saturday ! 'morning to the effect that loans ; have been granted by it to local authorities under political influence, and with a view to influencing the election of December, 1911. No loan has been granted by this Board to j any local authority under any pres- | suro whatever. The only con'sid- ! erations influencing the Board in | granting loans were: (1) Was the. l money required for necessary works ] irrespective of the class of local body applying for the loan ; (2) Was the security sufficient? (3) were funds available? The Board asks that a copy of this resolution be sent by the Superintendent to the Hon. Minister in charge of the Department. The Board further respectfully asks that (1) A copy of the above resolution be sent to the Press; (2) A tribunal be set up as soon as possible to investigate the charges of political influence made against the Board. In forwarding the above, I would point out that the objection to the Board lending to boroughs has no weight, for these reasons; (a) there was no power given to the Board to discriminate amongst different classes of authority; (b) had the Board done so and accumulated funds when certain classes of bodies entitled to them were refused loans, it would have been properly condemned for (1) favoritism; (2) losing money through having funds uninvested while local authorities were refused loans; (3) breaking the law by

assuming powers it did not possess. Xo proper application by any local' body was refused so loftß as funds were available—(signed) J. W. POYNTON, Superintendent. THE. MATTER DEBATED. Mr T. M. Wilford suggested that an- inquiry bo held by .Supreme Court. Judges. He asked if the Minister ■would take the responsibility «f vetoing the Board. The Hon. J. Allen said he would, if he thought it right to do so, or he had not the money. Mr 0. W. Russell quoted figures to refute the charges that boroughs had received all the loan, money. Ho mentioned that more than half the population of the counties resided in boroughs. He agreed that the opening up of the back-blocks was the very life-blood of the country. A WASTE OF TIME. Tha Hon. Mr Massey said the debate had been a great waste of time. Sir Joseph Ward knew there was no breach of privilege in the article quoted, and he had merely used it as a. peg to hang the latter part of bis. motion on: He (Mr Massey) opposed' that part of the motion, but he approved of referring the whole of the State "Guaranteed Advances affairs tothe Public Accounts Committee. Hip figures quoted by the Hon, Mr Allen on Saturday morning were absolutely correct. He declared that our credit had been seriously affected by sonify of the loans granted recently, and the work of settlement was at a standstill. He hoped before the session ended to be able to make better provision for back-blocks loans than had been tho case in the past. Mr Massey mentioned that on« borough had obtained a loan of £BO,OOO, a greater part of which remained in the hank 011 fixed deposit. Ho suggested that Sir Joseph Ward should drop the breach of privilege part of the motion. He was quitewilling to afford an inquiry into the workings of the Guaranteed Department. THE DEBATE "PROCEEDS. Mr L. A. Isitt said the Government had staked its position ov. ihe ment that the Advances Departs-* had been used to corrupt the doctorates. The Hon. E. M. B. .. ishev said tl'-iS after twenty-one yea v s n f oHim * Liberal Government had left a v-"" 1- "'' financial" position in the c::r.rt v ". first time an Opposition v * V" asked for an inquiry, ;t hrd benu rTnreservedly granted. (Left Sitting.)