LOANS TO LOCAL BODIES.

Colonist, Volume LIV, Issue 13567, 7 November 1912, Page 5

LOANS TO LOCAL BODIES.

REPORT OF PUBLIC ACCOUNTS

COMMITTEE,

POLICY OF ADVANCES BOARD

CONDEMNED

CHANGE IN PERSONNEL URGED

[United Press Association.]

Wellington, Nov 6. Tho Public Accounts Committee's report on loans to local bodies was read m the House of Representatives last night as follows:—

''The Public Accounts Committee, which was directed to inquire- fully into all the loans paid, or applied for, or provisionally or finally approved, for locai authorities under tlio New* Zealand State Guaranteed Advances Act since its inception, and to report on the losses made- (if any) the Act came into operation, commitments and available means and unexhausted loan authorities as at 31st March 1912, and 16th September 1912; also on tho letter of the superintendent of the Now Zealand State Guaranteed Advances Department of 30th September 1912, to the•Minister of Finance, has the honour to report as follows: (1) The loss sustained by the local authorities branch t.f tho Now Zealand State Guaranteed. Advances Department since- its inception up to 31st August, 1902, was between • £22,000 and £23,000, and was incurred owing, (a) to the Board's difficulty in finding- immediate investments far the funds at' tho credit of the loans to l^cu'l aiithor-ities accounts; and (b) to the remission of 10s per cent allowed to the Department being insufficient to cover the expenses and loss of i nicest, uiiU:.-t tho moneys remained uninvested. (2) 'Iho commitments on 31st Idcz. were- £82-0,320, and th« commitments on 16th September 1912, were £651,310. (3) The available means, and unexhausted loan authorities at 31st March, 1912, were- as follows : Credits in bank, £163,----643, unexhausted loan authorities £778,000. (4) Tho availamVmeans and unexhausted loan authorities at 16th Septembor, 1912, were as follows: Credits at bank £27,550, debts £30,000. debits exceeding credits by £2450; unexhausted loan authorities £825,000."

Tho Committee's finding was: "In regard to tho superintendent's, letter, written on behalf of the Advances Board, alleging that statements were made in tho House of Representatives on 28th September 1912, to the effect that loans had been granted by the Board to local'authorities-undor political influence, and with a view to influencing the general election of last December, no evidence was submitted substantiating ■:, tho super in tendent's written statemen'tjp'and the Committee consider that the iadmbers of the Board were ill-advised in accepting the headlines in the Press reports as sufficient grounds for writing to the Minister in charge of the Advances Department in the terms used in the letter."

Tho Committee's recommendation was: "The evidence has led the Committee to tho conclusion that insufficient control was exorcised in administering ]nr.v" J--\ local authorities, especially in c ■)!;!!;■! ting tho Department to advances i;i.- v ;ars ahead —an action which tho C■:••'■;.•! ':-toe is-advised was contrary to

!;.• ■/.. Your.Comtnitteo therefore, strongi,. ■ -r-jmmend a change in the personnel f-,1" -i 130- Advances Board. ._ ', .. "J. B. Hine,-chairman.**