THE MINISTER OF FINANCE.

Press, Volume L, Issue 14980, 29 May 1914, Page 7

THE MINISTER OF FINANCE.

SPEECH .AT LAWRENCE

THE MINISTRY'S POLICY

AND WORK

A COMPREHENSIVE--REVIEW.

(PRESS ASSOCIATION" TEI-rGRJUI.)

LAWRENCE, May £S.

The Hon. James Alien addressed a meeting of his constituents to-night, when there was a goal attendance, notwithstanding that the weather w.is \ory cold. Ihe Mayor (.Mr Robertson) presided.

After thanking the meeting tor the cordial reception accorded him, :»lr Aden went on to mt that at Milton he iiad. stated that tho surplus approximately was £-100,000. Now that tiic accounts were completed, ho migtu say that it was £4:h>,yO3. All *n» items of the revenue, showed an increase- except tho territorial revenue, and this aiu> would have shown an increase if he (Mr Allen) liad continued tho ovil practico ot years gono by. Tho cask derived from sales of land aiU from deterred payment, sales was notincluded in the revenue, as it had bco-i till ho camo into office. All tho cash from sales of land had boen credited to the land for settlements account, the gain being over £135,0U0. Tho public would thus see how much stronger the lands for settlement account was than it had ever been before. THE LOAN PROSPECTUS. Regarding tho remarks made By the Leader of tho Opposition about the memorandum accompanying tho prospectus for tho Now Zealand loans, tho Minister 6aid that it was not his purpose when jn London to draw the attention of tho London financiers to the fact that New Zealand, up till tho time ho had como into office, had carried out tho evil practico of selling lanS ciipitai and adding the proceeds to tho ordinary revenue. Whilst that prnctice continued tho surpluses wero unsound. Aα a matter cf fact ho (Mr Alien) hau little or nothing to do with the memorauduni accompanying tbo prospectus regarding tho loan; it was prepared at tho High Commissioner's office, and no (Mr Allen) lot it go. Nor was it his purpose to draw tho attention of London financiers to the fact that Ne\\Zealnnd had built buildings out ok capital, and when they wero burnt down replaced them out of capital. That added to tho surplus of previous years, and that had boen now reformed. "I do not know," said Mr Allen, "why the Leader of tho Opposition should try to compel mo to advertise his unsouud finance. Tho curus of tho year, if tho cash land sales had been included, would have boen greater. I have already alluded to the smallpox, the strike, and tho decrease of railway revenue duo to the strike. The increased expenditure was very largely duo to the increaeo in interest and.sinking func amounting to £171,000. There has been an all-round- increase in pensions of £32,000, and those of the public who are interested in tho old military pensibners will bo pleased to know that tho present Government has made provision for them involving a total of £20,4-15.

FINANCIAL. "As for those who cry out about tlie defenco expenditure, 1 am suro they will be pleased to hear that thero has been a decrease in the expenditure this year of £16,608. I may with pardonable pride, alludo to the very much stronger position financially of the Public Works Fund. At the beginning of the year 1912-13 the balance of the fund was only £82,580. In tho year 1913-14 the balance, after tho deduction of £249,776 for tho redemption of debentures, was £376,965. At the beKinning of the year 191-1-15 the Public Works account had a balance of £1,178,584. During tho year there has been an increaso in the expenditure on public works over tho previous year of £43,268. This was largely owing to the increased telegraph extension, the increase thero being £141,000. I note that the Leader of tho Opposition has been criticising tho expenditure on public buildings. Wo inherited a large responsibility from his Government for public buildings. I am pleased to be able to say that during the year there was a decrease in the expenditure on them of £70,542.

STATE ADVANCES. "I have another announcement to make which will be pleasing to tho country genorally, and even to the Loader of the Opposition and Mr (*. W. Russell. The finances arc so strong that I am able to announce that tho Board has been ablo to .increase the amount that may bo lent to 6ettlers for tho redemption of mortgages on freoholds from £500 to £750, and that it has also been able to increaso tho amount that may be lent to counties from £10,000 to £15,000, and to towns and smaller boroughs from £5000 to £15.000. „ x . "I tliirik it is just as well to put on record tho story of Stato advances with regard to the local authorities' branch. A resolution was passed on January loth, 1912, to reduce tho amount to £5000. -Mr Massey came into offico on July 10th. 1912, and found this limit of £5000 prevailing. He found, also, thafc tbo liabilities for local authorities amounted to £50.wu. Ten days before he camo into offico tne available amount to meet liabilities was only about £1700. It was imperative t<i decline altogether advances, but on May 17th, 1913. advances up to £1000 were authorised ; on June 30th advances went authorised up to £iO0O; on i'eb-rtiai-v nth, 1!»H. -up to £50C0; on April 6th ~1914, up to £10.000 to counties and £5000 to townships. Now. on May 18th, this has been raise to ilo.wU for counties, towns, and smaller boroughe. * "With regard to tho Advances to Settlers' branch a resolution was passed to reduce the amount to £500, and to decline to entertain applications foi tho purpose of repaying existing mortgages. This was in April, 1912. before wo came into office. On May 15tn, "1913, it was resolved to niako advances to Crown tenants for the purpose of releasing n-ortgages. On -May •3th. 1913, the limit of *500 imposed by the. previous Government was raiwi, to £600, on June 3Cth it was raised to £750, and on February 9th to £IiXX). Od April 6th, 1914, it was resolved to accept applications up to £iOO to redeem mortgages on freehold. Now, on Jfnv 18th this £500 was raised to

£7-30. "With regard to the workers' branch it is true that we had temporarily io reduce tho maximum. bnfc on February &th. 191<i, it was announced that v.o were able to increase it to £150, the limit allowed by law.

THE GOVERNMENT'S POLICY. •'I promised at Milton to deal with the question of ]-oUcy as indicated before Mr Masscy came into office, and to s««.y how far that policy had been carried out. Now 1 may bay that tho public lack? any indication from the Leader of tho Opposition as to his policy. That- i& not following the lea:l given to him by Mr Massey. When in

opposition, Mr Massey declared his policy straight-out to the public. Tho platform placed before a great mooting iv the Town Hall in Wellington by Mr Maecey on July 7th. 1911, included reform of the financial system of tho Dominion. As I havo be*m largely responsible for the I am able to say that this reform has, to a largo extent, been carried out. Tho finances are on a much sounder footing to-day than ever before. There is no need to go into details, which havo been published. It is true that Mr Massey laid down a policy of reduction in taxation wherever possible in order to lessen tho cost of' living. Tho responsibility left by our predecessors .is regards expenditure has boen so heavy that it has not been possible materially to reduce the taxation so far, but we have done several things xo make- tho burdm of living easier far those who find themif.lves in difficulties. For instance, provision has boon raado to cive the land

tax Commissioner power to grant, remission from the land tax to widows with children. This is now working excellently, and remedying cases of distinct hardship. Provision has also been made iv regard to tho income tax, for additional exemption 01 £2-5 for each child dependent on tho parent. The taxation on flax lands was amended and roots aro now .assessed for tho land tax and recurring crops. Tho loans for depreciation on machinery and plant hnvo bern increased from pi to 5 per cent.; thus removing a legitimate grievance. Local bodies in the back blocks have been able to get loans at a cheaper rate because tho present Govern mont provided for their beiug assisted to the extent of ono per cent. per annum for the first ten years, and a half per cent for the next ten years, and the payment of interest and sinking fund. These reforms should tend to reduco the cost of living, to some peoplo at any rate. The public must not place, too much importance, on tho reduction of Customs duties as a means of reducing the cost of living. This i≤ very' largely an electioneering cry. THE LAND SYSTEM. "Mr Mas&ey promised to reform the land system ox tne -Dominion, fuisui, all the twenty and odd years that the previous Government war; in v uever earned through such, important reforms in land legislation as Air Massey had done during his two years, nor did tho previous vjovernment art minister the lands in this country witn tho tamo determination to assist the settlers and increase settlement, as ha* Mr Massey. Wo increased the gradu ated land tax for tho purpose ot a. sisting in breaking-up tho estates, aiyl in tho Hawkc's Bay district alone in the twenty months ending March 31et : 1914, 37,500 acres of freehold ruraj land were bubdiviled and disposed of, tho number of subdivisions being 33L>, of 111 acres per subdivision. Regarding lands for settlement, smeo wo hay.} been in office acres hnvo been purchased at a cost of £31-1,530, and in order to show how progressive this policy h.i-s been under Mr Mnssey's control, I give tho figures relating to the land finally acquired for tho last live yeais. In the year 1909-10 there were acquired 42,805 acres at a price of £260,793. in 1910-11 there were acquired 14,399 acres at a price ot £108,79G, in 1911-12 41,447 acres at price 6f £351,453. Then, when M*Maesey came into power, in tho year 1912-13, 52,098 acres were acquired at a price of £428,044. and in 1913-14 141,0f>2 acres at a price of £560,708. Tho Native land purchases tell tho same story. In 1909 tho price of theso was £39,095, in 1910 £30.566, in H. £123.437, in 1912 £254.892, in 1913 £61,029, and in 1914 £257,701. This is a complete answer to tho critics both as regards the carrying out of our land policy and an to tho administration of land for settlement, both Crown au i Native land.

OTHER, REFORMS. "R-eform of the Legislative CouncU was also promised, and the Government lias done its best to carry out the .reform, and is determined this year lo see the legislation through. Reform or the Civil Service was promised, nnrt has been carried out. < The Public Ser vice Commissioners are in office to-day, and J, believe that under their administration wo shall get a better paid and a more contented service, even than before. A Bill dealing with local government reform will he brought down this year. In tho field of industrial and social legislation a reform has been made by making the qualifying age for old age pensions for women sixty instead of sixty-fivo years. Compulsory insurance against sickness and unemployment has not been carried; it is too big a question for this session, and it is wise to see how it works out in England and elsewhere.

"Reform of tho economic system of the Dominion was promised in the direction of promoting industrial peace and restoring public confidence to encourage local industries. There have been amendments to the law, and as you are aware, the Government has had tho greatest difficulty at times, with respect, to industrial poaco and strikos, that any Government has had to face.

INDUSTRIAL UNREST. "I desiro to dwell at some.length at tho question of industrial peace, in order to let the public know how much Mr Massey has done, and to draw attention again to tho shallow pretences of the Loader of tho Opposition. When we camo into office the heritage left us were the strikes at \V aihi and Reefton. Tho Leader of tho Opposition said that he could settle the recent strike in two days. Then why did he not settle tho others before "wo came into ofSco? You know the story of Waibi. As regards Reefton, Air Massey made every effort ho could to settle the strike. Then wo come to the question of the marine engineers. It seems to rue that the publio has forgotten the immense service rendered to the community by tho present head of tho Government in respect to tho onjrineere , strike. It was referred to Mr Massoy as an arbitrator, and ho settled it to the satisfaction of the engineers and of tho public generally.

THE RECENT STRIKE. "Regarding tho recent strike, the publie~must not bo allowed to overlook what happened in the early stages of the waterside workers' strike, but before I deal with that. I desire ito say something with regard to Mr Massey's attitude to Sir Joseph Ward's attempts to settle it. At the first meeting between tho Defence Committee and tho waterside workers, the committee offered to renew the agreemont for three yeax.i on a satisfactory bond being provided, or cash being put up. The reply of the workers was that the matter had been handed over 'to the Federation of Labour. Mr Massey himself met tho representatives of the watoriide. workers and offered Mr Justice Williams as arbitrator. That was not accepted. After all these efforts had been made to settle tho strike, tho Defence Committee declined to meet in agreement with tho unions not working under the Arbitration Act, and when tho last conference broke up, Mr Massey said to the Defence Committee, 'Get to work, open your ports, and I will see that law and order arc maintained. . What was the attitude of the Leader of tho Opposition, Sir Joseph Ward? Ho hampered Mr Masscy in every way he could; in the House ho misrepresented thingß that had occurred, and as far as I can judge, made a purely political patter of the strike, hoping to injure i»ir Massey and his party by so doing. Sir Joseph Ward J s account of what took place in Post Office square. Wellington, was biased and prejudiced. (Mr Allen quoted from the ' ; N.Z. Times" of that date to prove this statement).

'In tho early days of the strike," tho Minister continued, "the Waterside

Workers' Union had taiwn control of the wharves. An officer was attacked on his own steamer, gate* were broken down, shots were firoa, and tho whole thing was ono mass of wild disorder. Tho products of tho country lay idle in the trucks waiting for shipment, and liableto danger. It was this thnt brought tho country man iv to ship his own produce. 1 unhesitatingly say that Ssr Joseph "Ward made no attempt to as6ist Mr Massey in the maintenance of law and order. lie is now runniug this election, as far a* 1 can judge, hand-in-hand with the led Feds, who created the disturbance.

*'Xcw for Sir Joseph Ward's statement at Alexandra. " that legislation could havo been quickly passed to take a fccret ballot. Ho was 20 «dd years iv office, and why did he not pass legislation in times of peace to provide for a secret ballot, as Mr Massey has done? To talk about passing legislalioji cr a secret ballot at such a timo is to talk sheer nonsense. As for his suggestion at Alexandra regarding tho roadine of the. Kiot Act, 1 don't know whether the public realise what the reading v?' the Riot Act means. In all probability it would havo led either to imprisonment for twelv» months, or what 's quite, likely, tho use of bullet*. Dy patience and forbearaaic* Mr Massey has been able to .see tho strike over without any bloodshed, and 1 hope that now there, -will be permanent/ industrial poace.

WORKERS , HOMES. "At one time it was said that- when wo camo into office we would not administer satisfactorily the legislation passed by our predecessors. I hav>i already alluded under tiia hoariiag ai finance during tho course of my remarks this evening to tho way in whioh we have widened and broadened tho Auvane.es to Settlers' Act. As fo. - workers.' homes, though tho previous Government passed legislation for this, tho credit for tho legislation is largely, if not entirety, duo to Mr Massey's advocacy. Ho first brought the matter up in the. House, and it is natural that his administration of that Department should be sympathetic. We came office on Jufv 10th. ICI2. and from July 12th. 1912, "till -March 31st. 1914. IP> dwellings wero erected at a total expenditure of £70.606. Tno work put in hand since March 31st Inst includes 87 dwellings at a-u estimated cost of £11,149, and 100 others have been authorised by Cabinet at an estimated cost of £49.475, the total beinc 3' dwellings of a total cost of £161,230. Of these 36 havo been and are to iw buiiTJings in country districts, on areas of about five acres- Compare that -with the workers' dwellings erected by previous administrations, from \\w beginning of 1906, when : tho Act of 1905 came into operation, till January 30th. 1912. Durinc that time they had only built 210 dwellings at a cost of £146,G22."

THE NAVAL QUESTION. A food deal of criticism, Mr Allen went "on to say, was boing levelled against tho Government in regard to naval matters. He had dealt with this question at Milton, but ho wanted to cay something about the criticism. "The Government's critics,' eaid Mr Allen, "do not give tho people the Government's policy on this question. Who has proposed to build ships and set up a toy navy? Our policy is lo train men for the Royal Navy and nothing else at the present moment. Mr Massey bus said that during tlw current year ho proposes, if the Admiralty will not carry out a portion ot the bargain it entered into m 1909, ana supply us with two Bristol cruisers,, to ask to New Zealand to supply™ cruiser at its own cost of from £4CO,UUU to £500,000, and to run it at somethins; under £100,000 ft year 1 have no doubt Mr Massey will not press that question this session, for this reason:—That wo now know that a, naval conference will bo called next year in London, and it is not light to enter into any policy of building ships until that naval conference has taKen place. (Applause.) The policy now on the Statute Book, and which Parliament has agreed to by a largo -majority, is a policy to train New Zealand nierv for the Royal Navy, and also to train officers, and for that purpose tho Admiralty has agreed to lend us the Philomel. She will be handed over.to tie in July, and Captain Hall Thompson is coming out here to take charge of the Philomel and to act as advisor to the New Zealand Government on naval questions, and to look after tho training, of Now Zealand men. Mr Allen went on to say that tho present day Admiralty and tho Pirst Lord did not see with the earn© eyes that we bad. tho responsibilities of the nations that "jived in this Pacific Ocean. The time might come when we would have to fight for our policy. The Australian and Now Zealand policy was a white New Zealand and a white Australia. (Applause.) The Australian and New Zealand policy was that white men in New Zealand 'should not bo subjected to .competition which was not fair competition for them to meet, and it was possible—ho did not say ifc was probable—that nations might como down to Now Zealand whoso methods of living were not tho methods .undor which our. people lived, and wi» could compete, and competo unfavourably, ■with our workmen. Our policy was to keep these men outside- of our shores. It was our duty, and the responsibility of our statesmen to advise the people that it was our duty, to look to the future And make provision to protect ourselves in carrying out the policy we had deliberately adopted, and which we were not going to abandon. (Applause.) If British statesmen would not look with the same eyes on this responsibility as we did, it was our duty to force British statesmen so to look. The only way to force them was to take certain responsibility into our own hands. Those duties were not duties that would lead us to anything else than an Empire fleet. It was said tho Government was trying to sot up a toy navy with tho object of breaking away from Great Britain. That was a statement t.haS had no foundation whatever. Every member of the Government ami every member who supported tho Bill, was'as strongly in favour of one'lnlpcrial navy as Sir Joseph Ward, and stronger. (Applause.) It was absolutely necessary that there should be oulv one control, and he was fighting and working for it. A vote of thanks and continued confidenco in Mr Allen and tho Government was carried unanimously.