AN AMENDMENT DEFEATED.

Colonist, Volume LIV, Issue 13567, 7 November 1912, Page 2

AN AMENDMENT DEFEATED.

Sir Ha nan moved as an amendment to the Public Accounts Committee's report :

That the findings and recommendations in the Committee's report be struck out, with a view of inserting other words. These are to the effect that the evidence taken by the Committee and the records of the Department examined by it conclusively prove—(l) that tho statements in the Board's resolutions that no political or other inf!r. snee was at any time used to influence tbo Board was true; (2) that the members of the Board were justified in asking for an inquiry into the grave reflections on their probity and administration mad© in the House and the Press of tbo Dominion that money was lent for the purpose of influencing the general election in 1911. The inquiry had completely exonerated the Board from having been subject to or moved by political influence in the discharge of its duties ; (3) that no discrimination on political grounds had been made in the granting or refusing of a loan to a local body in any electoral district; (4) that no losses had been sustained through want of security under the State Guaranteed Advances Act. Losses amounting to £23,000 were incurred, being due (a) to the Board's difficulty in finding immediate investment for funds at credit, (b) to the remission of 10 per cent allowed to tho Department being insufficient to cover expenses and loss ■of interest whilst moneys remained uninvested; (5) the losses referred to in clause 4 were a trifle compared with those made

under the old loans to local bodies system ; (6) that the commitments made for payments of instalments extending over; a period of years were . in accordance with the regulations under tho Act. The. Crown Law Officer having now advised: that such grants wero. illegal the Act. should be altered to permit of these instalments of advances being made as in the r>ast; (7) . that .1 had the Post Office fulfilled the promise made in June last to lend Government £1,500,000; there would have been more than sufficient tomeet all engagements. Recommendations^ —(1) Now that that moneys may not be obtainable from tho Post Office the Act.should be altered to make the interest payable to local bodies the same as that at which it is raised when moneys are payable to local bodies, plue a reasonable amount for costs of administration. (2) Preference should be given to local bodies whose financial position and difficulty of carrying on their works entitle them to preferential treatment, and the Act should be amended in tho direction of classifying local authorities accordingly.

Mr Hanan, speaking to the amendment, said if the Committee had desired they should have specifically stated that there had been no political influence in connection with the operations of the Advances Board. The report ought also to have stated that there had boon no losses through the lending operations of the Board..

Mr IsJtfr said the report was absolutely the outcome of party difference.

The House divided on Mr Hanan's amendment, which was lost by 39 votes to 28.