STATE ADVANCES

New Zealand Times, Volume LI, Issue 11876, 9 July 1924, Page 7

STATE ADVANCES

COLLARED’ TWO MILLIONS PREMIER REPLIES TO OPPOSITION CRITICS. SOME LIVELY PASSAGES. The Prime Minister referred Th the House of Representatives last night to a “story that was carted round the country, not only during the recess but during the general election’ ’; that the' Government had collared funds from the Advances to Settlers Department, and had invested two millions of it in New Zealand war loans, so that it could say that it had floated its loans successfully. It was said that the money bad been “filched”—not a very nice word—from the department, and he supposed he was the “filcher” ; and that over a million was still owing to the State Advances Department. Ho (Mr Massey) had asked for a report on the matter. The report went right back to 1895, when the Act was passed, and a section was inserted in that Act allowing tho Finance Minister to temporarily invest any money in possession of the Advances Department not then required for the purposes of the department. From 1906 to 1913 no such investments were made: but immediately on tlie outbreak or the war, the cash balance in the hands of the department commenced to accumulate, and investments were made. At the end of 1918—and 1 tlie Leader of the Opposition would know who was then in the Cabinet and who was then Finance Minister—the amount thus invested was £1,884,000. At tne end of' 1919 it was two millions and odd; and £575,000 was added in 1920. The only investment in New Zealand war loan stock was made in 1918, to the amount of £725,000; and the whole of it had been re-purchased during his term as Finance Minister and the money handed over to the Advances Department. In 1923, deolared the Prime Minister not a copper was owing to the department. Mr Wilforcl: I will answer it. Mr Massey: Oh, I have no doubt you will. The Speaker: The next hon. gentleman must address the chair. Mr Massey: Yes, sir. I don’t onject to the interruptions; hut some times 1 can’t help replying. “MISREPRESENTED.” Mr Wilford said that he had been misrepresented. He had quoted the figures he had given from B 13. the balance-sheet of the State Defences Department, duly audited and found correct. In 1920 the amount of State Advances money temporarily invested was 'stated in tbe balance-sheet to be £2,391,000; in 1921 it was reduced, according to the balance-sheet, to £2 - 139,000; in 1922 it was reduced to ail 424,000 • and in the 1923 balance-sheet-, the last available to him the amount was £1.'160,000. Mr Massey insisted that the return be had quoted showed that in 1923 th* whole of tlie temporary loans had been paid' back.