GENERAL ASSEMBLY.

Waikato Argus, Volume V, Issue 323, 4 August 1898, Page 2

GENERAL ASSEMBLY.

LEGISLATIVE COUNCIL. WEDNESDAY. The Council met at. 'J.MO p.m. VACCINATION. Mr Jenning's notice of motion with regard to vaccination and vaccinators was postponed for consideration till Friday. SECOND HEADINGS. Several Bills passed their second readings. DIVOBCK BILL. On the second reading being moved by Mr MacGregor, there was considerable debate. The measure was supported by Mersrs Jones, McLean, Bolt, Scotland andMcCullough, and opposed by Messrs Wliliams, Gray anil Kerr, the latter moving an amenament that it bo read sjx months' hence. This was negatived by 28 to 10, and the second reading agreed to on the voices. HOUSE OF EEPRESENTATIYES. WEDNESDAY'. The House met at 2.30 p.m. NATIVE LANDS. The Native Lands Protection and Administration Pill was received by message from the Governor, and referred to a committee of the whole House. Mr Rolleston wished for information concerning the extent and purpose of the appropriation contemplated by the Bill. The Premier said all the information required would be given on the second reading, and that the House would be in no way committed by agreeing to the Bill, whieh was purely formal in its preliminary stages. Capt. Russell cited precedents to show that it was usual for the member introducing such a Bdl to explain its scope aud object when doing sa The Premier stated that there might be no appropriation at all, as the Bill was purely permissive. The resolution was agreed to, and the Bill read a third time. DANKINO DILL. The Bank of New Zealand Act and Banking Act Amendment Bill was further considered in Committee, In Clause 13, remuneration of Directors while holding office, Mr Taylor proposed that the Chairman's salary be £750, instead of £IOOO, as proposed in the Bill. The Premier suid he would accept a proposal that the Chairman's salary be £SOO, as he believed as good a man could be obtained at that as for £IOOO. The general manager would hava the chief responsibility, and the Board would have to do mainly with matters of policy. Mr Taylor withdrew his amendment in view of the Premier's statement. Mr Crowther remarked that the Premier bad evidently intended the larger salary for someone whose chances had been destroyed by the amendments made in'the Bill and he (the Premier) was not now anxious what the payment of a stranger might be. Mr Carson agreed with the opinion expressed by Mr Crowther. The Premier was in favour of voting a lump sum, which the directors could divide amongst themselves, and the chairman's salary need not then be fixed by statute. There might be a lump sum of £3OOO previded by the Bill. Capt. Russell did not believe in belittling the office and duties of the Chairman of Directors, and thought it a mistake to cut down his salary or leave it open in the way proposed. The Chairman should not be a political nominee, but a first-class man with special aptitude and experience. Mr Wason said Capt. Russell's argument was based on the assumption that a President of the Bank was necessary, but the House had spent six days in setting forth that the office was not needed He would support the Premier's [Tiposal. Mr Dutbie thought the chairman's salary, as proposed by the Premier, too little altogether. Mr Buchanan said it would be better not to have, a Board of Directors at all, unless it was composed of men of the right calibre, and this end was not likely to be served by the means proposed by the Premier. Mr Larnach maintained that a chairman of the class and character required for the position could net be obtained for a small salary, and it would be foolishness aud contrary to the banks' interest to have a man who would be contend with a remuneration cut of keeping with the responsibility and unremitting character of the work, which a chairman fit for the position would have to do. The clause passed without amendment. Clauses 14, 15, IG, 17, 18 and 19 passed without dissent, and Clause 20, Assets Board balance-sheet, to be yearly, instead of half-yearly, was agreed to after a short discussion. Clause 21, authorising the Govemor-in-Council to prescribe the forms of returns to be made by banks, was struck out. Exception was taken to Clause 22, providing that every bank in the colony should keep assets in the colony equal to its liability Mr Buchanan held that so-called foreign banks would necessarily keep themselves strong in countries in which they did their chief business, and it would not benefit New Zealand to compel them to do as proposed in the clause. The Premier said the clause was proposed in the interest of the people of New Zealand, but ho was not prejudiced, and would sooner let the clause go than jeopardise the Bill. He would bring in another Bill dealing with the subject and the question of returns. He moved that the clause be struck out, also clause 23, providing tor tho disposal of trading concerns aud lands taken possession of by any bank as mortgagee. Clauses 22 and 23 were struck out. Clause 24, modifying the deed of settlement, etc., was passed. The Premier proposed a new clause to the effect that the directors appointed by the Governer-in-Council should bold office for two years and retire alternately. Mr Buchanan moved that the time be three years. The amendment was lost by 38 to IS, and the motion carried. The term for directors elected by the shareholders was also made two years. In consequence of the decision to abolish the office of President, a proviso was added that shares be transferred only on the authority of the chief auditor or some person empowered by him. The House rose at 5.30 p.m. The Committee resumed at 7.30 p.m. The Premier proposed a new clause, to the effect that the Bank may from time to time out of profits make such provision as it deems desirable for ascertained losses or estimated defioiences in rc3peet of such of its assets as consist of trading concerns,property and other assets taken over or acquired from the Bank of New Zealand Estates Company, buildings acquired from the Colonial Bank goodwill paid the Colonial Bank aud expenses incurred in connection with convc»3ion or payment of debentures. Mr Fraser objected, as if the trading concerns and properties vvere written down, it would prejudice the fulfilment of the promise made to the shareholders of a dividend of 5 per cent, made an inducement to pay calls. The Premier said the Act provided that dividends should come out of net profits, which could not exist unless the assets were written down for depreciation. Mr Duthie saw no reason why the clause should not pass, as there was nothing unreasonable in it ; but a good dual more would have to be done before

the affairs of the Bank were placed on a bedrock foundation. Mr Montgomery thought the Premier's proposal was ;i fair thing, which should have been done long ago. The clause was agreed to. It was agreed that the Bank's balancesheet bo made up annually to March Mist in each year. Mr Taylor moved to the effect that the directors to be appointed under the Act take steps to dispose of the Bank in the colony or Great Britain, subject to conditions necessary to safeguard the interests of the colony. Negatived by 41 to 12. It was agreed that the chairman of fchc Board of Directors be elected annually. Mr Pirani moved that the members of the Asst'ts Board should in fntuie be deemed to be Civil servants, as had been provided in the case of directors of the Bank. The Premier objected to the prop sal, as representation on the Board should be a very special one in view of the large interests involved, the colony being interested to the extent of Fully £1,800,000. That being so, it was necessary that the Government, as custodian of the public interests, should be in close touch with the policy and administration of the Assets Board. As to the work of the Board, he took it as an instruction from Parliament that the Bo*rd should realise the properties as speedily as possible, yet with as little loss as possible. A long discussion ensued as to the operations of the Assets Board. Mr Fraser said that the Board had been selling properties as speedily as possible ; but a difficulty in connection with larger estates was that would-be buyers feared that the Government might compel them to sell again to the State at a time when the prices might bear a loss to them. If provision had been made that estates bought from the Board could not be taken under the Lauds for Settlement Act for a definite period of years, the Board would have sold a good many more estates. Mr Ward said the Board had not used opportunities which existed during the past three years for getting rid of properties, He thought more life might be put in the Board. The Minister for Lands said the Bowl Had shown considerable energy in selling estates, some of which, however, were of a character which could not he easily sold on account of inaccessibility and other causes. He showed that the operation under the Land for Settlement Act had helped the Assets Board to get rid of properties which would otherwise have remained in its hands. Mr Rolleston said the real question opened up by the proposal was whether the Prime Minister of the colony should sit at a salary on the Assets' Board, the actions of which he as a Minister was bound constitutionally to be in a position to review. Yet how could any Premier do so, he being a self-appointed member of the Board. The Minister for Lands said it was after b.e declined to Income a member of the Board that the Premier was appointed to a seat on it. Mr Massey thought the only solution of the difficulty would be found to consist in handing over the landed properties to the Land Department for disposal, and in selling the stock on the estate?. After that had been done the colony would be in a position to sell the Bank itself. In the course of his reply, Mr Pirani said the Premier and Mr Fraser should, as members of the Assets Board, have seen that an intelligible and accurate balance-sheet of the Board's proceedings was presented to Parliament. The economies of the Board, had been of a parsimonious order, and bad in some instances cousisted in reducing wages from .CI to ISs a week. (Left sitting at midnight.)