BREACH OF FAITH.

Auckland Star, Volume XLV, Issue 152, 27 June 1914, Page 8

BREACH OF FAITH.

i WHANGAREI BOROUGH'S COMPLAINT. KATE OF DCTEREST INCREASED. (By Telegrapn.—Parliamentary Reporter.) AVEbLi-Mh'TOX. Friday. the Lender of the Opposition called uu extraordinary matter "■'•'l'-s raised- by hrm when the Lnprest Bill was ! taken in the House to-d.iy. Sir Joseph Ward said that he was referring to an advance made to the iWhangarei liorottg'ii Council by the State Advaneis. Drp-.'.r!-ment, die was looking for information '.ir.cati.se it was a very important anattcr if a local body was rnadii tine victim of a ■breach of'faith by legislation. The W'ha-nc-arei Borough Council borrmved £10,200 'in the year I!>U at 31 per cent plus 1 3-S fcinking fund —a total of £-1 17/0 per cent. Tln-y arranged for two iu-tal-rncnts of A.'4.notl, which were paid, but in j February, WIH. the Department ani uounced that future instaitnents would carry ti 4,'. per cent interest, making, I with the .-inking fund, Co '-/". The Borough Council contested tiie right lo vary the orranfrcment. and litifralion followed. The <ti-sc was adjourned for 14 day,-, on the Solicitor-General's application, and, according to hia iniformatiou. in the interval an obscure clause v.as in- ! sorted in the Wasdiing-up Bill validating ! the increase. • The Prime illinirttcr: Xoi in that bill. j Mr Joseph Ward added that if an ngreement was nnuln, there wns no ju-li-licatiou lor v.iryiii"- il. even if interest had gone up in the meantirnc. lie would •be glad to know what the Minister oi j : l-'inance would say. I The facts stitod by Sir Joseph Ward j were, ■practically correct, answered the Hon. James Allen, who went on to siv thut the House passed leg-islation to stop the loms which was going en in connection with local 'boriie-- Wiaitfi. The (dause : df-.ilin? with the point provided tha-t the , rate of interest wns to Ik- the actual ! cost of the loan to the Government, phi's oue-eitrht per cent covering eh.iri-'es. Tihi? aiwlie! to all 10-n s to be paid f" a lo<-iI authority. whe-tlier the application wis finally granted o- not at the date of the ! passing of the Act,