LOAMS TO LOCAL BODIES

Hawera & Normanby Star, Volume XVIII, Issue XVIII, 24 October 1912, Page 7

LOAMS TO LOCAL BODIES

THE ENQUIRY CONTINUED

BY TELEGRAPH —PRESS ASSOCIATION

WELLINGTON, Oct. 24. The Loans to Local Bodies enquiry was resumed to-day. Sir Joseph W 7ard t giving further evidence, said he had never at any time taken any action to induce the Board to favorably entertain or consider a loan. He had always laid it down that the State Department should cany on their business as business concerns," apart altogether from the Minister.

Mr Fisher, called by Sir Joseph Ward, was asked if he had made a statement in the House suggesting that a loan of £30,000 was granted to Taihape for political purposes prior to the by-election for Rangitikei. The witness said he was not aware that the Board had not yet made an advance to the borough of Taihape. Sir Josepqh Ward: I think you will find that it has not made such an advance.

Mr Fisher said he was aware that an Advances Board was not in existence at the time of that by-election, but he did know that a loan of £30,000 was made by the Government to the Taihape borough shortly before the election, and that fact was known at the time of the election. About £30,000 had been advanced to Taihape between 190S and 1911, and he considered that that had considerable influence on the election.

Sir Joseph Ward: Are you aware that of that amount £21,258 was advanced by the Bank of New Zealand?

Mr Fisher said he was not aware of that. The loan was passed by the law officers and debentures were signed by the Treasury. His political experience showed him that the practice of the Government for many years past had been to expend money in districts which were represented by supporters of the Government.

Sir Joseph Ward: If advances made during election month have been made to local bodies in districts opposed to the Government would you say that that shows political preference? Mr Fisher: It would depend entirely on what the figures were. He added that he did not intend in his speech in the House to reflect on the Advances Board, but on the general practice of the Government.

Sir John Findlay, recalled, said there was absolutely no truth in the statement that he would pay for the holiday given to the men employed on the Remuera road woiks. He contended that a great inixistice had been done to him in not being afforded an opportunity to specifically deny the charge that had been made against him in that respect. There was no ground for the suggestion that the Remuera loan had anything te do with the election.

Mr Poynton, Superintendent of the Advances Board, questioned by Sir Joseph Ward, said that no money was lent to Taihape either by the Treasury or the Advances Board* in 1909. The Remuera loan was overlooked at a meeting, of the Board on November 6. He had never taken any active part in politics, and he had endeavored to follow as a civil servant the old British tradition of being loyal to any Government that was in power. Replying to Mr Pearce, the witness said that in 1909 a loan of £3000 was granted to the Taihape borough by the Bank of New Zealand and guaranteed by the Government under the old Act. In 1910 a loan of £21,250 was granted to Taihape by the bank in the same way.