STATE ADVANCES

New Zealand Times, Volume XXXVI, Issue 8261, 25 October 1912, Page 11

STATE ADVANCES

LOCAL BODIES’ LOANS

PARLIAMENTARY INQUIRY NOW

FINISHED

The inquiry ny the Public Accounts Committee ot’ the House of Representatives into tho administration of tho State Advances Departments was finished yesterday. Further evidence was given by Sir Joseph Ward, who said that ho had never at any time taken any action to induce tho Advances Board to entertain favorably or consider any Joan. Ho had always laid it down that tho departments of State should carry on their business as business concerns apart altogether from tho Minister. Ho put iu a letter from the clerk of tho borough of Birkenhead enclosing a resolution expressing regret at tho action of tho Minister of Finance in endeavoring to make political capital out of tho fact that a loan had been granted to tho borough council. That loan was granted for public works, but only after tho requirements of the Advances Board had been fulfilled.

Objection was raised by tho Hon. J. Allen to such a letter being put in. Ho said that tho same resolution had been forwarded to him and he had replied to it. Tho chairman (Mr 'J. B. Hrtne) ruled that the letter could not be put in.

A TAIHAPE TRANSACTION. Sir Joseph Ward called the Hon. F. M. B. Fisher to give evidence, and asked him if ho had made a statement iu tho House suggesting that a loan of £30,090 was granted to Taihapo for political purposes prior to tho by-elec-tion for Rangitikei. He was not aware, he replied, that the board had nob yet made an advance to tho borough of Taihape. “I think you will find it has not made such an advance,” remarked Sir Joseph. Tho Minister in reply to further questions said he knew that the Advances Board was not in existence at tho time of tho by-election, but ho did kuow that about £30,000 was lent by tho Government to the borough of Taihapo shortly before tho by-election was held. That fact was known at the time of tho election. Ho put in a statement respecting loans to Taihape, which showed that about £32,000 was advanced to tho borough at various times between 1908 and 1911. In his opinion the fact that these advances were being made to Taihapo had a considerable effect on the elections there. There could bo no shadow of doubt about that. An advance of £21,250 might have been made by the Bank of New Zealand, but ho took it that tho loan was made by the Government and tho money borrowed from tho bank. Sir Joseph Ward: I know as a fact that the £21,250 was advanced by the Bank of New Zealand. PURCHASING POLITICAL SUPPORT?

Questioned in respect to remarks made by him in the House on September 28th, tho Minister said that his political experience Jed him to regard it as a general practice of tho Ward Government to expend public money in districts where support was wanted and political advantage could bo secured. He could not say, however, that this applied to the State Guaranteed Board or the loans to local bodies system, as ho did not know where this money was expended. It had always been his opinion that the Liberal party bought votes with public money. AN UNFOUNDED SUGGESTION AND A PROTEST.

Sir John Findlay, who was recalled at tho request of Sir Joseph Ward, was questioned respecting the statement of a previous witness, Mr Hugh Wilson, that Mr Cawkwell, chairman of tue Remuera Road Board, had suggested that Sir John would pay -the wages of thirty of the board's men who were given a holiday after listening to a political address. “There is absolutely no truth in it., I knew nothing of these happenings until they were dragged out before this inquiry. That was the first time I knew there was any suggestion that 1 had anything to do with this transaction,” replied Sir John Findlay. He added that ha considered the tee had done him a very great injustice —he did not say intentionally—but ono that would not bp suffered in any court of justice. When before the committee before ho had been asked in a vague way about a payment to some men, and was afforded no opportunity then of clearly and specifically denying tho allegation made. In common justice a witness (such as he had been) ought to be given a chance of meeting and denying any sugestion against him at tho time it was made, but the statements, which were clearly intended to affect his character, bad been made nearly a week ago, and he was only now given an opportunity of defending himself. In common justice he had been entitled to be asked expressly and explicitly concerning this matter. The Hon. J, Allen remarked that every opportunity had been given him. Sir John Findlay said that the records would show whether this was so. If the chairman thought he had received common justice ho could only bow to tho decision. The chairman said that Sir John Findlay had been recalled the very day the statements were made, but had not attended. As far as tho committee was concerned ho thought that Sir John had received very fair treatment. Sir John said this did not meet his point. He ought to have been told clearly what tho suggestion was and asked at tho time if it were true. UNAUTHORISED ACTIONS.

To further questions by Sir Joseph Ward, he said lie had not authorised Mr Cawkwell to act on his behalf in connection with the election campaign in any way whatever. He had never paid the wages of any of these men; ho had never authorised or suggested any holiday being given: ho had.never bespoken the support of these people. He restated the whole of his connection with-the matter, and added that he know nothing of the two men who were supposed to be canvassing for him and that he was in no way responsible for any actions of Mr Cawkwell. In reply to questions put by other members, he said that his complaint or unfair treatment was based on tho assumption that, when ho _ was questioned last week, the questioner knew what the evidence was which would be given later by Wilson and others. If Mr Allen did not know what the evidence was to bo then the complaint did not apply. ’ The Minister remarked that ho had simply hoard that the payment had been made, but ho did not know what evidence was to be given by Wilson and tho others until they came before the committee.

NO GOVERNMENT LOAN TO

TAIHAPE.

Tho superintendent of tho Advances Department, Mr J. W. Poynton. was also recalled by Sir Joseph Ward. He said that no money was lent to the

ixirough of Taihapo. cither by the Treasury or the Advances Board in 1900, the year of tho by-election there. Neither had any money been advanced to Taihapo for electric lighting purposes by the Treasury or tho Advances Board. So far as tho Remuera loan was concerned, neither tho telegram from Sir. John Findlay nor Sir Joseph Ward’s minute upon it had any effect upon the transaction. It was approved by tho board members individually simply because tho papers had been overlooked at tho regular meeting. Questioned by Mr Pearce, ho said that tho loans raised by Taihapo in 1900 were obtained from the Bank of New Zealand and guaranteed by tho Government. This was very different to a direct loan by the State. To Sir Joseph Word, ho said that the Remuera loan seemed to bo tho only ono concerning winch political influence was alleged. No such influence had been used on him or -the board by Sir Joseph ’and ho (Mr Poynton) was left to draw up tho reply which was sent to Sir John Findlay, LONG EXPERIENCE— NO INTERFERENCE. Colonel R. J. Collins, Controller and Auditor-General, was called by Sir Joseph Ward. He said lie had had many years’ experience of tho lodns to local bodies system, but had never been under any' political pressure from anyone. There had boon no discrimination shown. Ho was Secretary of tho Treasury in 1909 when the Rangitikei by-election was held, and knew that tho Taihapo loan of £21,250 was obtained from the Bank of New Zealand under the Government guarantee. Tho borough made jts own arrangements .with the hank, and there was no political interference at all. The department had nothing to do with this part of tho transaction. The evidence of Colonel Collins closed tho inquiry. The committee has now to draw up its report for submission to the House.