POLITICAL NOTES.

Wanganui Chronicle, Volume LXXVI, Issue 18019, 6 November 1920, Page 5

POLITICAL NOTES.

LOCAL BODIES’ REQUESTS FOR LOANS.

MR MASSEY’S WARNING. (By Telegraph.) (From Our Parliamentary Special.) WELLINGTON, Nov. 5. Reference was made in the House to-day to the difficulty experienced by local bodies in securing loans at u -,a per cent. The matter was raised by Mr Young, who said the Hamilton Borough Council was unable to raise money required for urgent, drainage work. The Prime Minister: I will be very glad to look into the difficulty. As a matter of fact. 1 have had a number of communications from other local bodies on the same point. There are so many applications for loans by local bodies that there is not enough money to go round. Only a day or two ago one of his officers had informed him that ten millions worth of applications had been made to the Treasury from local bodies. It was not possible to find the money. There were. In addition to this amount, loans in connection with which promises had been made previously. Mr Reed: How much in the Public Trust Office? Mr Massey: Ido not know. That is in addition.

Mr T. W. Rhodes: Probably I. wen ty millions. Mr Massey said it was not possible for him to give an approximate idea of the amount sought from the Public Trust Office, but the position into which the country had got was that local bodies were actually competing with eac:t other for money, which might or might not be available. If that went on it would mean that instead of money being available at 5 to 6 per cent., it would go up to 8 or 10 per cent. He impressed on members rhe need for informing local bodies of the position, and for urging them to hold over all but urgent works. There was not likely to be enough money for their needs for another six months, or probably longer. The allocation of £50.000 for increases in pensions was referred to by Mr Poland (Ohinemuri) in the House to-day. He said he had worked out figures and found that to grant an increase of 5/- to old age pensioners would cost £259,000; 10/per week to widows would cost £89,000; and 10/- to miners would cost £lO,OOO. These increases were not more than should be granted, and was £50,000 the whole sum to be allocated to help?

The Prime Minister said he wished to say at once that it was absolutely impossible to grant the £358,000 referred to by Mr Poland. “I am not going to be one to assist in running this country into financial difficulties. I do not say that we are getting into financial difficulties, but that iff the direction in which we arc tending. Mr McCombs: You are to get a million more from the Customs than you expected.

The Prime Minister: I know my own business in connection with finance. Parliament, and the country must learn to be as careful and as economical as it was possible to be under the circumstances. The Prime Minister said that he saw the first draft of the Finance Bill this morning, but the pensions clause was not in it. It had yet, to be inserted. He did not expect to have it down tomorrow. WORKERS’ COMPENSATION The old question of whether coin pensation for the death of a worker caused through the negligence of a fellow worker should be limited to the maximum fixed in the Workers’ Compensation Act (now £750, irrespective of whether action is taken under that Act or at common law) was raised in the Legislative Council to-day. On the order paper was a Bill introduced by the Hon. MacGregor for the purpose of so limiting the compensation. Apparently he realised that at this stage of the session it would be almost impossible to get such a contentious matter through both houses, for although the second reading was carried by 20 to 4. he prevented it from being dealt with further this session by asking that the committal be made an order of the day for to-day week. The four opponents of the Bill were the Hons. Barr. Sir Wra. Hall Jones, Nerheny, and Smith.