LOANS TO LOCAL BODIES.

Stratford Evening Post, Volume XXXIV, Issue 39, 9 October 1912, Page 6

LOANS TO LOCAL BODIES.

TAKING EVIDENCE BEFORE THI COMMITTEE.

(Per Press Association.) Wellington, October 9

The Public Accounts Committee me

to-day to consider the question of the allocation of loans to local bodies under

the State-guaranteed Advances Act

Tlie Hon. Mr Allen said they desired to give Sir Joseph Ward a perfectly free hand, and lie could summon any witness he desired.

Sir Joseph Ward said he wanted the question of political influence by Ministers having been exerted enquired into, and whether the money had been squandered.He desired to call Sir John Findlay and the representative of any district to which a loan had been granted. In the general interests of the community he wanted to clear up the statement that ho had used a groat State Department for political purposes..

Mr Allen said he wanted to have the whole of the statements proved that had been made in the House.

The lirst witness was Mr J. Poynton, Superintendent of the Department, who produced a statement giving details of operations of the Department since loans to local bodies came under Ids administration. In the course of his statement, Mr Poynton said no Minister or member of Parliament had personally or by agent at any time either by persuasion or suggestion or by any communication approached him with the intention of influencing him to grant or refuse any application for a loan. Cases in which Ministers or members appeared at all in connection with loan matters had been remarkably few considering. Local bodies, of course, look to the member for the district to help them in these transactions. If one member of the Board disagreed, the loan was declined. All loans granted wore an unanimous vote of the Board. No loan had been granted without proper •ccurity.