THE TRUST FUNDS.
The proposal of the Government to lend a sum of money out of the Trust Funds for the purpose of enabling the construction of the Otago Central Railway to Eweburn undoubtedly contributed largely to the rejection of the Central Railway Bill, but it did more than that. It created a feeling of alarm m consequence of the apparent intention of the Government to enter upon a new course of borrowing m a highly bbjeotionable form. It is not surprising, therefore, that the whole matter has been carefully inquired into by the Public Accounts Committee, which has submitted two reports to the House, which recommended as follows : — (l) " That the power of investing the money belonging to the Post Office Savings Bank shall be placed m the hands of a Board, and that the Govornment be requested to bring m a Bill this session to give effeot to this resolution ; (2) That m the opinion of this Committee no loan should be made out of the Trust Funds, the Post Office Savings Bank funds nor the Public Debt sinking funds, upon any other than securities of the colony of New Zealand, or other Government securities, or by way of loan under the Loans to Local Bodies Act, or upon Bank deposit securities ; and that there shall be at least one-third the amount to the credit of the Post Office Savings Bank account invested m New Zealand Government securities, the interest on which is payable m London, and that such securities be deposited m London to be used m case of any possible financial emergency m the colony." These recommendations have been exhaustively discussed, and have been adopted by the House by sufficiently pronounced minorities to render it incumbent upon the Government to submit the necessary legislation to give effect thereto. Two things appear very plain on the face of the resolutions, namely, that the House is determined that the Trust Funds shall not be employed m bolstering such enterprises as the New Plymouth harbor for instanoa, and that it declines to trust the present Government an inch further than it can help. Indeed, these very resolutions supply an undoubted proof that though the House is unwilling to turn Ministers out at present it has no confidence m their measures or their administration. The position is undoubtedly m the highest degree illogical, but it is the position nevertheless.
See our copyright guide for information on how you may use this title.
Use these buttons to limit your searches to particular dates, titles, and more.
Print, save, zoom in and more.