FINANCE BILL.

Otago Daily Times, Issue 21165, 24 October 1930, Page 13

FINANCE BILL.

QUESTION REGARDING RAILWAYS. MEMBERS SEEK INFORMATION. (From Oub Pabt.iambntabt Reporter.) WELLINGTON, October 23. After the telegraph office closed at 2 o’clock this morning, the Acting Prime Minister (Mr E. A. Ransom) replied to the debate on the second reading of the Finance Bill. He said the borrowing authority sought iu the Bill was exactly in accordance with the usual practice. It did not follow that the total amount authorised would be borrowed. Cabinet had yet to decide the actual amount of the individual items of expenditure. Mr Ransom stated that the Government regarded the question of the railways as one of major importance. It was one v for which the House must accept responsibility individually and Collectively, and one which had got far beyond .party politics. He quite agreed that it might be necessary for a special session of Parliament to be called to consider the decisions relating to the operating railways and lines under construction; at the same time he thought it should be realised that it was not permissible for him as deputy leader to make a policy statement on this very important subject. On the other hand, it was his duty to see that a thorough investigation was made, so that he would be able, as soon as the Prime Minister returned, to place before him all the available information concerning the commission’s recommendations and other matters. It might even be necessary to take some drastic steps prior to the Prime Minister’s return.

Mr Ransom said he did not agree with the past policy of running railways and road transport side by side, and he fully realised that modern transport developments .were largely responsible for the railway losses. He believed, however, that, where it might be considered advisable not to complete the Main Trunk lines, the gaps should be served by up-to-date means of transport, which would carry' passengers and freight at ordinary railway rates and charges. Cabinet bad not yet decided whether the committee on railway lines under construction should be, reconstituted during the recess. , Personally, he felt that the committee should be, given a further opportunity of going into the matter. Referring to railway construction generally, Mr Ransom said other considerations than the earning of interest must be taken into consideration.

The Bill was read a second time at 5 a.m., and was then considered in'committee. Shortly after 5 o'clock the Leader of the Labour Party (Mr H. E. Holland) suggested that the House should at that Bta se adjourn till 2.30 in the afternoon. Ransom said he could not agree to this course. ° : At 6 o’clock Mr F, Waite (Clutha) moved to report progress. He said if an adjournment were taken Ministers might be able to confer, and subsequently give the House a more definite indication of the Government’s policy in regard to. various subjects. . Mr Hansome said he would treat the motion as one ofno-confidence in the Government, on the ground that it did not contain a request for leave to sit again. The motion was rejected by 24 to 15 and the short title of the Bill was passed at 6,15 a.m. There was still the greater portion of the committee stage uncompleted when ; the House adjourned 9 aiTn ' 011 resuming, . M. Samuel (Thames) protested against the proposal to appoint an Undersecretary for Defence, stating that a similar system had been a failure on a previous occasion. MV A. Harris (Waitemata) characterised the proposal as an extraordinary one, in view of the Government’s declared policy of economy. The Minister of Defence :(Mr J G. Cobhe) said .there was no intention of placing the new officei in a superior position to that of the General Officer Commanding. It was intended that the civil officer should have complete control of all expenditure. The Minister added that when the Defence Bill was under discussion he had made an allusion to -the very big supplies of small arm ammunition. He had only recently been informed that of these forty million rounds, upwards of twenty-six million rounds were unserviceable. Of these twenty millions were suitable for use only in machine ! k/w whilc shc millio ' n rounds, costing £60,000, were absolutely useless. In face of puch a position as that he thought he was, justified in asking for a man to take charge of the business transactions of the department. Mr suggested that the Minister’s explanation was not of much value because under the contract there would be legal redress for faulty ammunition. The Leader of the Labour Party (Mr H. E. Holland) said that after the Minister’s explanation he had no hesitation in making up his mind to vote for the proposal. Surely some change was necessary. Such work should be conducted by the business rather'than by the military section. Mr T. W. M“Donald (Walrarapa) agreed that some change was necessary, hut he asked what hope a civilian official had of judging whether ammunition was faulty. In his opinion the trouble emanated from a contract negotiated by civilians, and the remedy should consist of immediate cancellation of the contract. The Leader of the Opposition (Mr J. G. Coates) stated that the defence system needed overhauling to ascertain where savings could he made, but he was satisfied that a military official would he capable of doing this. Replying to Mr Harris, Mr Cobbe stated that the difficulty of defective ammunition was not the reason for the ap.pointment of an Under-secretary. There were other reasons. The Minister again read the statement outlining the duties this officer would be called upon to undertake. A division was taken at mid-day on the clause providing fop the appointment of an Under-secretary, and it was adopted by 40 votes to 18. The House adjourned at 1 p.m. till 2.30 p.m. On resuming’, there was considerable opposition to the lost clause, which imposed certain restrictions on the power of building societies to receive deposits on loans. ■Mr Ransom agreed to drop the greater part of the clause, but the section dealing with the provision that there should be a statement as to the total amount of deposits and loanr was retained. Mr Ransom staled that he desired. to retain this section to which the other portions would be added next year if inquiries made in the meantime showed that such a step would be advisable. The Bill was reported to the House with amendments, read a third time, and passed.