HOUSE OF REPRESENTATIVES.

Nelson Evening Mail, Volume XLII, Issue XLII, 16 September 1908, Page 2

HOUSE OF REPRESENTATIVES.

The House met at 2.30. The Bill for closer settlement of land by the establishment of settlement associations was brought down by a message from the Governor, and was read a first time. The Manawatu Railway Purchase Bill was committed and reported after a desultory discussion on various minor points. In committee on the Public Bodies Leases Bill at sub-section 4, clause 8, .Mr R. McNab said it would be unwise not to give the leasing authority the discretion provided therein, otherwise it might have to accept an unfinaneial or otherwise undesirable tenant, j Mr T. Y. Duncan said in every case the body should have to show cause why the highest tender was not accepted. Several other members, spoke to the same effect, and also objected to sub-section 5 as indefinite. On the motion of Mr R. McNab these two sections were struck out. The House adjourned at 5.30 p.m. The House resumed at 7.30 p.m. The Public Bodies Leases Bill, the Wellington and Manawatu Bailway Purchase Bill, the Inspection of Machinery Bill, the Declaratory Judgments Bill, and the Impounding Bill were each read for the third time and passed. Sir J. G. Ward moved the second reading of the Local Bodies Loans Amendment Bill. He said the Government could not go on indefinitely finding all the loan moneys required for the local bodies. The Bill provided a scheme whereby the local authorities instead of procuring loans from the Government under the Local Bodies Loans Art, 1908, can raise loans from public debentures guaranteed by the Government. The aggregate amount to be guaranteed any one year not to exceed £500,000. In respect to every guaranteed loan the local authority must establish a sinking fund in the hands of the Public Trustee of not less than one per cent of loan, half this amount being paid by the local authority, and the o<ther half by the Government by way of subsidy. He considered this a most beneficent scheme, and thought under the circumstances the Government was entitled to ask the local bodies to invest the sinking fund in public securities.. The Premier continuing, pointed out that the Government's liability for any loan would be a constantly diminishing amount. He thought the Bill would be the prelude to a wider measure of local government in this country, and it would relieve the ever increasing burden on the central tyMr Herries said all sections of the House would help to pass the Bill, which the local bodies had been clamouring for. He would like to know, however, if the Government intended this measure to supersede the Local Bodies Loans Act. Sir J. G. Ward : No, it is an addition to that Ac£. Mr Herries said he would like to know what principle the Government would follow in discriminating between the various bodies applying for guarantees, as they approached the £500,000 limit. During the first year or two there was sure to be a rush, and he thought struggling local bodies should get preference over more wealthy mvn ' c 'PaJ bodies. Ho also thought there should bo some system of inscription, whereby stock could be quoted on the btock Exchange. Several members spoke in general support of the Bill. h Mr Hogg expressed a hope that the BUI would not issue in the practical withdrawal, or even reduction of the C.overnment's assistance to settlers in the country districts under the Local , Bodies' Loan Act. ' Mr Sidey congratulated the Government upon the measure, which would be of great benefit, to the local bodies. Mr Jennings feared that the Bill favoured chiefly the settled districts, while it was the backblocks settlers that required assistance. . Mr Massey agreed that the back blocks interests must be safeguarded. While generally favouring the measure, he felt that it would chiefly help the wealthier local bodies in the settled districts. It was obvious too that the money was gomg to cost the local bodies at. ieast 4 per cent. He ventured to assert that this measure would not. to auce all the demands upon the public works funds. He felt that such reduction could only ensue from a complete reorganisation of our system of local government. He thought it was very unfair to expect local bodies to place all their sinking funds in the hands of the Public Trustee, whether the loans were guaranteed or not. The debate was continued on similar lines by Messrs Roes, Mander, Witty, -kll, and Duncan. Mr Ngata said the Bill was a liberal measure^ which would require amendments m committee to enable the Native lownship Councils to take advantage of its provisions. Mr James Allen favoured the Bill, but thought a moro liberal measure still would be required to relieve the political pressure and to free the roads t?u ""age* vote. The provisions of the am did not compare with those of the Loans to Local Bodies Act, under which