STATE ADVANCES OFFICE.

Stratford Evening Post, Volume XXXIV, Issue 33, 2 October 1912, Page 5

STATE ADVANCES OFFICE.

STATEMENTS IN THE HOUSE

ENQUIRY DEIIAX DEI)

(Per Press Association.) Wellington, October 1. The following memorandum has been forwarded to the Minister of Finance ;

The Now Zealand State-guaranteed Advances Office, Advances to Settlors’ Branch, Wellington, September 30, ,1912. —Memorandum for the Hon. the Minister of Finance, Wellington: At to-day’s meeting of the Now Zealand State-guaranteed Advances Office Board, the following resolution was passed: “This Board regrets the statements made m the House of .Representatives last Saturday morning, to the effect that loans have beeon granted by it to local authorities under political influence, and with a view to influencing the general election cf last December (1911). No loan has been granted by this Board to any local authority under any pressure whatever. The only considerations influencing the Board in granting loans were—(l) Was the money required for necessary works (irrespective of the class of local body applying for the loan)? (2) was the' security sufficient? (3) were funds available?” The Board asks that a cony of this resolution be sent by the Superintendent to the Hon. the Minister in Charge of the Department. Tim Board further respectfully asks that—(l) A copy of the above resolution bo sent to the press; (2) a tribunal bo sot up as soon as possible to investigate the charges cf political influence made against the Board. In forwarding the above, I would point out that the objection to the Board lending to boroughs has no weight, for these reasons—(a) There was no power given to the Board Ato discriminate amongst different classes cf local authorities; (b) had the Board done so and accumulated funds while certain classes of local bodies entitled to them wore refused loans it would have been properly condemned for—(1) Favouritism, (2) losing money through having funds uninvested while local authorities were refused loans; (3) breaking the law by assuming powers it did not possess. No proper application by any local body was refused, so long as funds were available.—(Signed) J. W. I’O Y NTON, Superin ten dent.” In the House of Representatives this afternoon, Mr. Wiiford gave notice to ask the Prime Minister if lie will immediately cause an enquiry to be held in regard to the grave allegation!? of the Minister of Finance in relation to alleged political influence re the granting of loans to local authorities hv the Stateguaranteed Advances Board, \ and if he will request a Judge of the Supreme Court to l hold such enquiry in open Court, with the press present, so that' the public may judge for themselves whether there is anything in the serious charges of jobbery and corruption levelled by the Minister of Finance against the Board, the members of which are of high character; and if lie will not order a public enquiry, will ho repeat the statements made against the Board outside the House of Pa. l amont, so that members of-the Board may have an opportunity, through the Courts, of proving their innocence of the serious and 'damaging indictment made ufider the shdici of Parliamentary privilege against them? Sir 'd 1 . G. Ward gave notice of a .motion for‘a return giving full details of th® .loims granted} to boroughs, bounty- councils, and other hoards," together with, the rate of interest, etc.. In theHTouso in the evening, Sir Joseph Ward raised a question of breach of privilege in connection with an article* in the “Dominion” pewspaner, yesterday,- .which he declared contained ‘ a statement absolutely contrary to fact. It was. he said, a singularly remarkable thing that reflection should he cash on the Stateguaranteed. Advances, Jloard and public office)N}iiy a Minister of the Crown. The charge was calculated to injure the credit pf tjm country,hoped that tlie Minister wouldffigree to refer ’Tie matter tcT'tho Public .Accounts Committee. ‘ If that did ; mot satisfy the Prime Minister, ho would he willing t-o agree to a committee nominated from the other side of the House .or to an enquiry bv a Judge. He averred that counties, road hoards, and town hoards had received as much in one year as others had in three years. The article in the “Dominion” had implied that a State institution was, at last election, used for political purposes. In the Prime Minister’s constituency a board had received more per head of population than had Timaru. Two boroughs in the Minute” For Railways’ district had received loans. Was that, he asked., spoils to the vanquished? Money ,had gone to Onehunga, New Plymouth, Waitema+a and Eden, all of which were represented by his political opponents. Members of the Governmoqt were endeavouring to eonvev the impression that councils and road hoards had been starved, and a vailable' money so pandered for political purposes. There was not a tittle of truth in tlie statement. Counties and road hoards had received more in the past two years than they could under the old system in fifteen years. A hoard in his electorato had been refused a ]onn. He wanted the matter to ho cleared up under oath, and if the charges were proved the officials concerned should he swept out of office. Ho moved that' a breach of privilege had been committed by the “Dominion” in the publication of the article dealing with loans to local authorities, and that the same he referred to tlie Public Accounts Committee, with power in call for persons and papers, and to enquire into all matters in connection with the said loans. Mr. R. McKenzie seconded the motion.

Mr. James Allen Imped the Prime! Minister would accept that portion of the motion relating to' an investigation of the affairs of the Loans to Local Bodies Department. His grievance was that the previous Mini-try had mitered into a policy of plunge. Ho had 'o fare £650.000 ef eomn itmeuts, whieh ho had not made, and there was nothing coming in. All that was -v ila.i»la on September 16 was £27,550. Ho did not desire to shelter himself behind the Department. It was not their fault. The Department had to carry out the law, hut who made the law? His complaint was that the previous Minister of Finance had approved of £2,831,000 in two years. The result was that these bodies wore now comiitg to him for the money, and he could not give it, to them. Rich boroughs Hko Timaru should not come mi to the ■State, while the- State was losing on dm transaction. The charge ho made was against legislation, and the effect of that legislation. Payments to bodies hist before elections had an unwholesome effect, and may have affected the elections. Lie quoted a letter from the State-guaranteed Ofl'me ’•ogrottiiig the statements made in the House. Mr. Wilford suggested that an eneuiry he held by a Supreme Court Judge. Ho asked if Mm Ministe- would take the responsibility ef vetoing tiie Board.

Mr. Allan said that ho would if he 'bought it right to do so, or if he had not the money. Mr. Russell quoted figures to refute the charges that boroughs hap rs-

coivod nil the loan monies. Ho mentioned that more than half the population of the counties resided in boroughs. He agreed that the opening up of the back blocks was the veiy life blood of the country. Mr. Massey said that the debate had been a great waste of time. Sir J. G. Ward knew that there was no breach of privilege in the article quoted, and had merely used it as a peg to hang the latter part of his motion on. He (Mr. Massey) opposed that part of the motion, but lie approved of referring the whole of the State-guaranteed affairs to the Public Accounts Committee. The figures quoted by Mr. Allen on Saturday morning were absolutely correct. Ho declared that our credit had been seriously affected by some of the loans recently granted, and the work of settlement was at a standstill. Ho hoped, before the session ended, that ho would bo able to make better provision for back blocks loans than had been the case in the past. Massey mentioned that-' one borough had obtained a loan of £BO,OOO, the greater part of which remained in the hank on fixed deposit. He suggested that Sir J. G. Ward should drop the breach of privilege part of nis motion. Ho was quite willing to afford an enquiry into the working of the Guaranteed Advances Department. Mr. jsitt said that the Government had staked its position on the statement that the Advances Department had been used to corrupt electorates.

Mr. Fisher said that after twentyone years of office the Liberal Government had left a rotten financial po sition in the country. The first time an Opposition member had asked for an enquiry it had been unreservedly grantee!. Ho said that he believed that for the past twenty-one years public money had been used for political purposes. , Mr. Lauren son contended that the late Government had been attacked bv innuendo, and the public now wanted that innuendo justified. Sir J. G. Ward having replied, lie withdrew his motion on the Prime Minister undertaking to refer the whole matter to the Public Accounts Committee for fuH investigation. The motion was carried, and the House rose at 1.20 a.m.