I.—llA.

" (d.) The delay was due to the local body's own fault, and the conditions to be complied with were pointed out in the telegram in reply, and the £10,000 asked for was declined. In this connection it should be stated that no money was paid over for six weeks after the telegram was sent, the first instalment being paid two days after the second ballot. " Rpcommendations. "1. Now that moneys may not be obtainable from the Post Office, which was the usual and only source of supply, the Act should be altered to make the interest payable by local bodies the same as that at which it is raised when the moneys are payable to the local bodies, plus a reasonable amount for costs of administration. " 2. As the amount authorized each year, £1,000,000, is now found not to be sufficient to satisfy all applications, preference should be given to local bodies whose financial position and difficulty of carrying on their works entitle them to preferential treatment. As this would place an invidious duty on the Board the Act should be amended in the direction of classifying local authorities accordingly." The motion being put, the Committee divided, and the names were taken down as follow :— Ayes, 4 : Mr. Craigie, Mr. Hanan, Mr. Myers, Right Hon. Sir J. G. Ward. Noes, 6 : Hon. Mr. Allen, Mr. Hine, Mr. Lee, Dr. Newman, Mr. E. Newman, Mr. Pearce. So it passed in the negative. Clause 1. Moved by the Chairman, That the clause be agreed to. The question being put, the Committee divided, and the names were taken down as follow : — Ayes, 6 : Hon. Mr. Allen, Mr. Hine, Mr. Lee, Dr. Newman, Mr. E. Newman, Mr. Pearce. Noes, 4: Mr. Craigie, Mr. Hanan, Mr. Myers, Right Hon. Sir J. G. Ward. So it was resolved in the affirmative. Clause agreed to. Clause 2. Moved by Mi-. Lee to omit the clause. The question being put, it was resolved in the affirmative. Clause omitted. Recommendation : Moved by the Chairman, That the recommendation be agreed to. The question being put, the Committee divided, and the names were taken down as follow : — Ayes, 6 : Hon. Mr. Allen, Mr. Hine, Mr. Lee, Dr. Newman, Mr. E. Newman, Mr. Pearce. Noes, 4: Mr. Craigie, Mr. Hanan, Mr. Myers, Right Hon. Sir J. G. Ward. So it was resolved in the affirmative. Recommendation agreed to. Mr. Hanan moved to put in a minority report. The Chairman ruled that a minority report could not be put in. Resolved, That the Chairman report to the House to-morrow. Resolved, That the minutes of proceedings and evidence be printed. The Committee then adjourned. Thursday, the 7th Day op November, 1912. The Committee met at 2.15 p.m., pursuant to notice. Present: Mr. Hine (Chairman), Hon. Mr. Allen, Dr. Newman. Minutes of previous meeting read and confirmed. Resolved, on the motion of Dr. Newman, and seconded by the Hon. Mr. Allen, That a vote of appreciation be accorded the clerks, Messrs. Ceilings and G. F. Bothamley, for their services. Resolved, That the Chairman be empowered to sign these minutes. The Committee then adjourned.

ii—l. 11a.

IX