A WHANGAREI LOAN.

New Zealand Herald, Volume LI, Issue 15646, 27 June 1914, Page 10

A WHANGAREI LOAN.

SIR J. WARD'S " INFORMATION" QUESTION IN PARLIAMENT. ! "YOU WERE MISINFORMED." [by rtLKuwa.— coebksposoest] Wjyj.n«GTO!;, Friday. A.iuma connected with a Whangarel municipal Joan was raised in the Homo this afternoon by Sir Joseph Ward. He said that when in Whangarei recently, ho was informed that in 1911 the Borough Council agreed to borrow the sum of £19,200 from the State Guaranteed Advances Department at 3£ per cent, interest. Two ica'ilments of £4000 each wcro received, but when the balance of £11,200 was applied for, in February, 1913, the council was informed that the rate of interest had been raised to 4J per cent., notwithstanding that the rate agreed upon was 3J per cent. Litigation followed, but, on the application of the Crown, tho case was adjourned for a fortnight. He had been told that in this interval an obscure clause was inserted in the Washing-op Bill validating the increase in the rate of interest The Prime Minister: That is not correct. Sir Joseph: I am only stating what I was told in Whanearoi. Mr. Maasoy: You were misinformed. Sir Joseph Ward: Was it in the Appropriation Bill? ' n Mr. Massey: No. Sir Jo«sph repeated that he had been informed that such a clause was pawed, and that as a result of the passing of the clause, the council was put out of Court. Mr. F. Mander (Marsdcn): I heard that, too, but it?*was altogether wrong. Tho Minister for Finance (the Hon. James Allen) said that when the Government carao into office it found that money was being lost on local authorities' loans. It was decided that this must stop, and provision for doing so was mado In an amending Act, which was passed in 1912 This provided that, in future, local bodies should be charged the actual cost of the loans, plus ont-eighth nor cent., to cover charges. It was specifically provided that this should apply to all loans, whether already authorised or not. This Act, Mr Allen pointed out, was carried a' year before the litigation with the Whangarei Borough Council arose, and not after the litigation had been comrnenred,