FURTHER BORROWING

Manawatu Standard, Volume LIV, Issue 281, 26 October 1934, Page 6

FURTHER BORROWING

CRITICISM IN THE HOUSE. A LONG SITTING. Per Press Association. WELLINGTON, Oct. 26. The House of Representatives did not rise until 4.30 o’clock this morning owing to the debates on the second readings of the Unemployment Amendment Bill, the Local Bodies Loans Bill and the Finance Bill (No. 3) for which urgency was accorded. Rt. Hon. J. G. Coates moved the second reading of the Finance Bill (No. 3). He said that although authority was given to borrow £6,000,000, very little of the money would be needed in the present financial year. Mr W. A. Veitch asked what railways were affected by the proposal to borrow £4,000,000 for public works. Mr R. A. Wright said the clause relating to the construction of railways was highly contentious and he wondered if it referred to the South Island Main Trunk line or the Gisborne and Wairoa lines. What was the use of opening up new country when they could not dispose of the present produce? It was also proposed to borrow money for main highways, yet money was now being taken from the highways and put into the Consolidated Fund. He could not understand that kind of finance. Mr H. M. Campbell regretted that the country seemed to be starting off again on borrowing. They had managed to get along without borrowing for the last few years and he had hoped that now that things were brightening up they would have been able to get along a little longer without borrowing. He hoped the money would be used for the redemption of present loans at a lower rate of interest. Mr P. McSkimming also protested against the Government launching out on a borrowing campaign. Mr Coatee, in reply, said Mr Wright was talking nonsense and his remarks were mischievous. The Bill was asking for authority to borrow ;.. no specification was provided. The Wellington railway station had to be built, the line to Paekakariki electrified and buddings had to be built in various parts of the country. The seoond reading was carried and the House rose at 4.30 a.m.