FINANCE AND DEFENCE.

Dominion, Volume 2, Issue 501, 7 May 1909, Page 6

FINANCE AND DEFENCE.

MR.\ J. ALLEN, H.P., INTERVIEWED. ' REPLY TO THE PRIME' MINISTER. [»r TBLKOIUPII—PaisS IfISOCtiTIOHJ • ' Dunodln, May 6. To-day Mr. J. Alloa wasinterviewed ror , garding tho Prime Minister's Invercargfll 'speech. ...'' ■ •''-'.'-'■'. '■'■'. ,V ; . Touching on Finance, Mr. Alien said tho speech was to him a- disappointment, and so, it must v be.to every person who oonsid- ' ored tho situation. Apparently the whole of tho extra railway" earnings, amounting to ,_ £83,507, had been;.expended; as tho'. •.-' Prime Minister 'stated that.'a saving, on votes of £176,340 had boon effected. This ' remark should, bo carefully, noted,:. bocauso,( without.this saving on appropriations, thero' would practically navo been no surplus at','all. ' •.•.,.■:'■ ■ ).. ' ! ■ ■'•■.: It was somewhat startling to read in tho speech that the expenditure of the Consoli-. ; dated Fund for the year had increased by" £571,000. The -Prime Ministor v now: admit- : ted that a quarter : of' a million could•> bo saved' by amalgamation' and economy,. This' was all very well,, but if that saving could . be made this year, it could havo been- mado in- other years,' and- the; money used on ; : " roads, railways, etc.'- . ' .-.-■' r"> The increase m roveriuo in three years bythe Ward Administration was,; ho admitted, • s ' £1,416,826, but the increase.in expenditure ■'■■'■ in tho same torm 'was V £1,663,173. - In 1906-7 the revenue rose by £814,000, and in--1907-8 by £655,000; but in 1908-9 thero was: a,drop of £54,761, ,and ; in tho same year-■:.''■ the' expenditure had; increased by~/Over half a million. ;,-; : - .. ; .. •■ '..'/,. '•..' ■Last year 0n1y,79 per cent, of the railway vote, and 73 per cent., of. the v road voto,- was expended. In' tho current;year ho'anticipated ,it would, be necessary, to raise 1 , a loan .-.'.: greater than the million and a quarter of-' last year.. .v.'.'.-'\ ;: !.-'.i:.\ ,'-.;-'-. ■'• '-'■'__■.'/■' ;-\ ,' ...pealing, with'general matters,' Mr.'.Allon;' ' said it was satisfactory, in. one sense, to ■: . know. that tho ; Prime Minister had been - . able to arrange for loan renewals. ■;, At. ■ tho '.' same time it was the. duty of..' every, : politician to warn the , constituents and . tho country generally that this -practice- of.hav-. uig'to renew a large amount, of shortdatod, debentures, every ;< now and then becoming '..'.'.' due.was a' very,hazardous ono.; It-was weS , 'known;that /short-dated .'■ debentures'..-.:'were ; ', nearly all high .interest-bearing, loans,', and':'.;' to llave ronowed them at a high interest . rate for longer terms, than originally., was not satisfactory,; ahd.'was-conteiniiatpry. of ' the prinoiolo.of 'short-dated; debentures.' .It '■'■'-. was not right' that-tho Government should .'- have-to /renew or\ provide for, .within a■'■; period of three years nearly eight minions ,~ of debentures, and that it should have-to ■'.';■ provide,. in tho .current year, for another r £2,613,899.. ..-:';.■ ;- .':,;>, .-'• -'.: -',■■'■ :,'.; '.--.. '.v.:.; ' L ; TV*ith respect; to Natrvo lands'.; ft-''seemed: ' hopeless to expect any'improvement from tho ■ "■ present administration. Indeed,: with ' tho' imown proclivities of Mr.. Ngata and' 'Mr.'' Ciarroll,; arid; their influonce' ; m-the Cabinet," European settlement of those Native lands would . -to..' av largo ;: extent 'be • blocked. '5 Southerners did not realise how muoh Native-.' land, was looked up unused by : Natives, and - becoming -in, some instances a menace from weods.r Southern members .ought to i; givo it,, helping; hand'.'to tho north' in. order'to-' : make- provision• that Native; lands : shall bo ' no longer unused. If tho Natives do not uso- ' them themselves, they should' bo opened for V;" European settlement..;' ■, . .';' '";, : .J_Two' main policy measures that'the Prime''•'■■ ■ Mmister- indicated were national anffimtios,and- land settlement finance scheme.' Sir ■ - ' Joseph Ward-might have had tho latter on ? the; Statute Book last, year,, for. tho. general; * •'. principal :of it was approvedby fie Opposi-j tion. Asto national annuities, tho principle of •solpJiolp was one that tho; Opposition per- . 6istently adyocatod.-fro'm .thevery earnest days. 'Even' in Sir; Harry Atkinson's timo : . he placed-.bpforo the- public,a ',scheme,.-for national annuities. When the old ago pensions ; sohemo came, down,- the' Leader' of ,tho.Opposi- ■'•'.• tion at.' that time,-urged,! that; it.might bo .' ;■ made; into scheme. Whafciho feared in-respect'. to tlie '': Prime'Minister's.,proposal was that it-would;, v.; not be,on a .sound, financial .basis.; • ...

On tho question, of. defence, tiie'cormtry ..»; was .ripo for. a- change; and membera had l f Urged: ; upon. Parliament, .the necessity. .. for'' tills- change, in no. party -spirit .whatever. Sir Joseph Ward hod the opportunity to make"'.' a ohango if lie had the will, and it was. to be' hoped before Parliament came to- a conclusion , ; that something: would 'bo done \to put our - defence in a more;satisfactory, position. -The •.' volunteer 'system, stood 'condemned as, a ays- !: -'; torn. 'Those who had .entered it had done their'duty., to tho country, but others had not, and, the law. must bring tliohr into linel. The '■ ': matter was too'serious to;'delay any longer.'' Our country and the Pacific wore absolutely" at the mercy of' Eastern nations, and .though we might bo friendly .for the time 1 being, it touched his pride,to think'ho had'to rolj.'" iipon the' Japanese for safety.' ■'.'.' "'. V"■': ' "'■■'■'