EMPIRE DEVELOPMENT

Dominion, Volume 18, Issue 104, 28 January 1924, Page 6

EMPIRE DEVELOPMENT

BRITAIN’S FINANCIAL OFFER PUBLIC UTILITY SCHEMES ADVANCE OF PART OF INTEREST By Telegraph.—Special Repor p er. Auckland, January 26. Supplementing his general statement regarding the finances, the Prime Minister referred to the British Government’s proposal for financial aid to the Dominions, in the development of public utility schemes. The advances to the Dominions, which would be in the nature of part of the interest for a period on the capital involved, would, said Air. Alassey, be subject to the necessary appropriation by the British Parliament. The scheme was explained to the Conference by the President of the Board of Trade (Sir Philip LloydGreame). The measures of development in progress in the various Dominions were designed, ho said, to add to the production of the Empire, and also to facilitate settlement; and it was to the interests of all concerned (and perhaps to the interests of the United Kingdom especially) to see that these schemes of development were put in hand at once and speeded up. It meant getting settlers quickly, who would at once get their chance, and it meant immediate orders for manufactured goods from the United Kingdom, in addition to the growing trade which naturally flowed from an increase of production. The British Government uas pursuing a policy to give financial assistance to local authorities and to public utility compan|es at Homo, and they intended to pursue the same policy in regard to the Dominions. So far as the Domini ms were concerned they possessed ample credit of their own, and it would, said Sir Philip, be derogatory to them were the Home Government to contemplate such a course. Aloreover, such guarantees would involve Treasury control, which was, of course, unthinkable from the point of view of the Dominions. He suggested, however, as a matter for discussion, that there might be some co-operation between them, by which the Imperial Government should advance part of the interest for a period on the capital involved in respect of public utility schemes put in hand before their normal time. He instanced in illustration of this suggestion tho hydro-electrical programme proposed for New Zealand, the railway development in Australia, and the Indian programme _ lor Tailway and other works, involving an expenditure of £70,000,000, to be spread over a term of years. The conditions for such co-operation would, he suggested, include: (1) That the schemes in the main should be of the same character as those assisted at home and in the colonies, namely, schemes ' developed by public utility associations (2) That the suggested assistance should be devoted to the acceleration of tho scheme ; ’ (3) Orders should be placed in this country; and • (4) That there should be some form of joint responsibility between the British and the Dominion Government. The measure of assistance would, of course, vary with iJhe remunerative character of the schemes both as to advance and as to repayment. The basis of the British policy was to help to push- on these plans, because that would hasten the ]>eriod at which the development would yield fruit, and would provide almost immediate employment in this country. The jaoposal, he thought, was sound economically, and he invited the most critical examination of it on tho part of the colonies. Air. Alassey welcomed the proposals, because it appeared to him that the Mother Country and the Dominions would benefit. Mr. Bruce, Prime Minister of Australia, said the Home Government had shown great statesmanship in the suggestion, which Australia would welcome. The Indian and South African Government delegates said they would look carefully into the question, as to how far their programmes could be accelerated. On behalf of Canada, Sir Lomer Gouin said he hoped Canada might take advantage of the scheme, although industrially she was not in the same position as other Dominions, because she wa ■ now to a large extent a manufacturing country.