APPROPRIATION BILL

New Zealand Times, Volume XL, Issue 9173, 13 October 1915, Page 10

APPROPRIATION BILL

SOME, UNUSUAL CLAUSES.

■The Appropriation BUI, making profusion for various public services up to March 31st, 1916, was read a first time ind a second time without debate. The Minister for Finance (Bight. Hon. Ur Joeeph Ward) said that the bill iontained’ several clauses that did ■■ not ielong to ordinary Appropriation Bills.

Clause 18 extended tho Government.!, borrowing powers in respect, of the State coal mines to a total of .£250,000. The provisions of the Civil List Act relating to house allowance were applied to Ministers not in receipt of salary. The Government was authorised to expend out of the consolidated fund any suras required for the purpose of paying for'supplies of wheat from Qmada or Clause 24 provided that John Strauchon, Charles Ranken Vickerman. George Hogben, and Donald Petrie, retired civil servants, might lx- paid sums deducted from their superannuation allowances tu respect of fees received for service on commissions di: as assessors. , . Another clause provided . that during the present war local bodies shouW. not be entitled- to borrow money .(except by wav of bank overdraft within tho limit of their powers, if any) from any source or under any authority without the consent of the Govcrnor-in-Council. IMPORTED WHEAT. Answering a question put by Mr "W.U-" ford (Hutt) the Prime Minister said the power to pay for tho Canadian wheat was required because payment might have to precede the sale. Ho knew exactly where to place the wheat, and had expert advice in Canada. Mr Wilford; "Every shilling m price means a loss of .£15,000.” Mr Massey: "When we took the option over a million bushels of Canadian wheat tho outlook hero was thoroughly bad. Wc were faced with the prospect of a scarcity of wheat, the markets all over the world were rising, and it seemed necessary to provide for the ipeoples needs.” The Canadian wheat had not been required after all owing to altered conditions, and how he had to sell the wheat on the best terms possible. A certain loss would be incurred. RETIRED > CIVIL SERVANTS. Mr K. McCallum (Wairau) said the Go.varnimleD'U should not employ netired civil servants on commissions unless the circumstances were exceptional. LOCAL BODIES! LOANS. Dr A. K. Newman (Wellington East) said that he saw no reason for the interference with the rights of local bodies in the matter of borrowing. The local authorities would not borrow at unreasonable rates. ■ „ ’ Mr Ell (Christchurch South): Some of them are mad enough to do anything. It is a very proper elapse.” t ' The Finance Minister said the restriction on borrowing applied only to the period of the war. The Government could not allow local bodies to borrow at very high rates and so, inflate the interest rates all over the country. There must be control during the war period 'to prevent money being- raised to an unnecessarily high rate. The local bodies of Great Britain had already been restricted ‘in this way.' Mr A. H. - Hindmarsh (Wellington South) protested against ’ the clause. bodies, b© 6-aid, should buv© th© right to ’borrow the. money they needed for necessary works without interference by the Government. , „ ... Mr H. G. Ell (Christchurch South) said that rthe-clause was .a wise one. Local bodies should be protected from the temptation to borrow money at high rates ,of interest, and so injure the credit of the whole Dominion. Mr W. T. Jennings (Taumarunui) said that the clause would stop many useful works. Tho Finance Minister said , the -clause would help tho local bodi*. If the Government did not keep the rates of interest down, then everybody would suffer. Even the State could not borrow cheaply if local bodies- were paying high rates of interest, and if the Government could not borrow cheaply the local' (bodied would suffer through the Idvaiiccs Department. The clause did not interfere with a borough’s bank overdraft. Xthe choice waS between tho paymentof 5 or 7 per cent, interest by local bodies and the suspension of public works, then obviously the works should be suspended /°Mr Hindmarsh.. mover! an amendment to add a. proviso as follows that nothing in this section shall affect loans to any local authority received by wav of deposit.” . . . „ The amendment was • re; octet* ty j-i T °The Appropriation B'E was repelled from committee at 3 n.m.