The Rebate of the Gold Duty.

Cromwell Argus, Volume V, Issue 244, 14 July 1874, Page 6

The Rebate of the Gold Duty.

Having given a Nelson and Westland opinion of the late action of the Otago Provincial Council in passing this Ordinance, we now give an Auckland view of the matter. It seems a very strange proceeding that the Southern Mercury does not quote any of these opinions. It strongly advocated recourse to this devious step of swelling the bank coffers and increasing dividends, and setting the Colonial Government and the interests of the other provinces at defiance. We believe in the total abolition of the duty as both an unjust and an unsound tax, and extract from the Premier’s journal, the Southern Cross, the following remarks, which bear out our own argument:—“lt is a curious arrangement which the Provincial Council of Otago has resolved upon by way of making a reduction of 25 per cent, on the export duty on gold shipped from that Province. By resolution, the Council has decided upon returning 6d per ounce of the duty levied by Act of the Assembly. The proceeding is by no means straightforward, and seems very like an attempt to upset the law of the Colony, Practically it is, as it seems to us, a breach of the Constitution Act, as it is in effect an interference with the Customs duties, which are solely under the control of the General Government and the Parliament of the Colony, and which Provincial Legislatures are prohibited from touching. It is unjust to the other provinces where goldfields exist, and whose revenues may be seriously affected if such an act as that of Otago is intended to force on the Assembly, by the ad captandum cry, a further reduction of the gold duty, about which, as a rule, the practical miner cares little and would benefit less. If the other provinces could dispense with the money so proposed to be sacrificed they readily would ; but, as a rule, the effect would be in Auckland and in Nelson, by so much as is remitted, to lessen the amount of money available for expenditure for the services of the goldfields. It is true the revenue from gold duty, although colonially levied, is applied to provincial purposes ; but it comes to be a question of serious import as to whether any province is justified in paying away its revenue by gratuitous distribution of this kind. What are the services rendered for the moneys thus proposed to be so freely disbursed ? Literally none. Moreover, it may be asked, under what authority are these remissions to be paid ? Are such presentation payments to be authorised by a special vote contained in the Appropriation Act of the Province ; and if so, will not the auditor be bound to ascertain whether any, and what, provincial services have been performed ; and if no service has been performed, will not the Audit Act prevent his authorising payment ! Nay, it is a question whether the fact of such an item appearing in the Appropriation Act —as it appears it ought to do according to all rule of legitimate dealing with public moneys —seeing that the expenditure was to be made without any equivalent or return whatever, would not imperil the Appropriation Act itself, and warrant the Governor in withholding his assent to the same. It is by no means a satisfactory course of action on the part of any province, and, as an interference with what is really a colonial question beyond provincial powers, is an unwarrantable proceeding.”— Wahatip Mail.