BARK, BUT NO BITE.

Dominion, Volume 6, Issue 1830, 16 August 1913, Page 6

BARK, BUT NO BITE.

THE MINISTER GIVES FACTS, TQ JUSTIFY THE BUDGET. Tho Hon. J. ALLEN (Minister for Finance) congratulated the member for Avon on his good torn in his speech, ivhioh had been moro lark than bite. There had been no bito to hurt tho Government at all, but a great deal of bark. Tho member for Avon had said the Govern-, meiit were "dressed in brief; authority." Certainly their authority was brief just yet, but none could say how much longer it would, go on. There was a much letter instance of "brief authority," and tho lion, gentleman had experienced it. (Laughter.) Tho Opposition had claimed to have a policy for 20 years. They had a policy once, but they worked it out ten years ago, and they had been casting round for another, borrowing from the present party in power. Mr. Witty: AVliero is your policy? Mr. Allen: It was declared in last year's Budget, in last year's legislation, and it is declared in this year's Budget. Ono of the admissions of the member for Avon was that the soundness and prosperity of tlie country was evidenced in tho Budget. This had likewise been admitted

by tho member for tho Bay of Plenty. And this soundness and prosperity was said to bo duo to tho administration of tho luLo Government. Was that tho result of tlio little brief authority of tho hon. gentleman and his friends for threo months? (Laughter.) Had they left tho country financially sound? > They had left the Government a loan of millions to repay next year, when another shortdated loan was falling due. "Was this sound finance? Ho- (llr. Allen) was convinced that this was a disastrous piece of finance. The "Conservative" Cry. It was not correct to say that the Government v.a- Coii:'" MTu t . It was truly Liberal, and had brought in more reforms last year than any previous Government in any 0110 yeai'. It was not a fact that the prosperity of tho country had beeir chccked by the coming into office of tlio Reform Government. The statement was made wildly by tho member for Avon, unsupported by any evidence. Ho (Mr. Allen) had evidence, and ho proposed to give it in order that people in the country and out'of it would know that tinder a stable Reform Government'tho country was moro likely to prosper. For the six months ending Juno 12, the exports wero .£20,126,000, and for tho same period in 1913, ,£23,500,000. The imports for the six months in 1912 wero <£20,530,000, and in 1913, This showed at least

that tho trade of tho country was growing and prospering. In spite of the reproaches against thq Government for stopping expenditure on railways, it was still a fact that tho total expenditure—new construction' and addition to open lines—was • tho highest for the last seven years. Electioneering Finance. During tho time tho present Government had been in office the expenditure' upon roads and bridges had been the highest for soven years, except for two years. Honourable gentlemen opposite knew perfectly well why it was that these two years showed so heavy un expenditure. The years were 1908-3 and 1911-/ 12. Tho amounts spent upon roads and bridges in these years were respectively ,£513,000 and .£520,000. It mis impossible. to keep up expenditure upon roads and bridges at the rate which had obtained in thess election years. It was a curious part of tlio finance of the Government that had gone out of office, during recent years, at any rate, that expendituro upon roads and bridges in election years had been abnormal.

Mr. Russell: You said that your expenditure upon railways was more. Mr. Allen: That was not in election year. There was tho fact, ho continued, that excluding these two years, which were abnormal, expenditure ujion roads and bridges during the' time ot 'tho present Government had been larger than ill any of the seven years ho hail mentioned. Honourable gentlemen opposite mado two complaints.: They said that tho Government did not spend enough money and that it borrowed too much. These complaints were inconsistent. If tney had oncv they could not have tho other. It could not bo said that settlors and those in noed of roads and bridges had been neglected by 'the present Government. On the contrary, notwithstanding tho financial stringency, mid notwithstanding the financial difficulties left as a legacy by its predecessors, the Government had met tho needs of settlers as for as it could be expected to meet them. Tho llouso and tho country could not expect that tho abnormal expenditure of election vear should be maintained. Ho had shown that l.ho railway expenditure was heavier than at any time within the preceding six years. Posi Office Funds. The member for Avon had spoken of a shrinkage in Tost Ofliee Savings Bank funds, but deposits this year exceeded by i; 100,000 those of tho preceding year. Mr. Myers: What twelve months. Mr, Allen said that he had compared tlm years ending December. IIHI, and jjocemboi. lSl'i What Jjad hanooued in

regard to tho Post Office Savings Bank? it was not that depositors had lost confidence in the Post Ofiico Savings Bank. The fact was that, owing to tho prosperity of tho country, mul owing to tho high rate of interest obtainable, people had withdrawn their deposits from the Post Ullico Savings Bank. No doubt these funds had been invested in' legitimate enterprises, which added to the stability of tho country, and assisted its development. Ho did not regret this, except that, in his capacity of Finance Minister, it imposed certain difficulties upon him, because those who preceded tlio Government had relied upon these Post Ollico Savings Bank funds. Instead of making provision tor their ' commitments they had speculated upon tho future—upon these Post Office funds. Had they been wise financiers they would have made definite provision for their commitments. Did tlio hon. gentleman who had preceded Qiim for a moment suggest that either tho preceding Government or this Government was responsible for the inore.uo in tho rato of interest?

Mr. Russell: I consider you wero responsible for it.

Mr. Allen: Unfortunately for tho hon. gentleman it took place before we came in, during tho time of the past Government, but I am not such a fool as to say that they wero responsible for it. Noitlier this Government' nor any other Government was responsible for tho rise ill tile rate of interest. No country was borrowing at the rate of 3J per cent., but tho lion, gentleman wanted to malco political capital by trying to make people believe that the Government in office was responsible for the rise m the rato of interest. Unemployment, As to unemployment, tho Minister remarked, it was no unusual thing to have an unemployed difficulty at this time uf the year. In the time of the previous Government thoro had been an unemployed difficulty almost every year, and tho Government had found it necessary to spend money upon railways in order to get rid of the difficulty. This Government had conserved funds with which to meet tho unemployed difficulty, and although possibly soino unemployed remained in the towns and refused to go into tho country to get work, that was tlileir affair. A largo number of men had lately been employed on publio works, and tho. unemployed difficulty—such, as it was—had been relieved. To magnify tho difficulty as tho hon. gentleman had dono was' only to cry "stinking fish." Tho cry had been raised more than once during the session that the amount lent by tho Advances Department last year was less than in the previous year. This was quite true, for tiio late Government had lent over two millions in one year.

Mr. Russell: Hear, hear! That was the way to steady tho rate of interest. .

Mr; Allen: The year in which over two millions was advanced was election .year! The amount which could legally be advanced in one year (with accumulations) was . .£1,500,000. Tho country could not go on at tho rato of two millions a year.

Mr. MacUonaid: The money was there i - investment—from the Post Office.

Mr. Allen: The money was not there, unfortunately! Mr. Russell: Only after you took offico. Mr. Allen: Before wo toolc offico. It mas tho previous Government that reduced tho amount to bi> lent by tha Advances to Settlers branch to .£SOO. This Government has raised (ha amount to £750, and it is now providing far tho renewal of mortgages for Crown leaseholders. Tho previous Govern .nent, too, ho continued.

had reduced the _amount to bo advanced to local outhoritics to £5000. This had come about because of tho plunging in tho yca.r preceding election year. In this way the late Government had landed itself and its successor iu difficulties. Humanitarian Legislation, Tli'o political opponents of tho Government Had taid .luit when it came into power it would U'pral tno pensions legislation, Mr. Russell: So you would if yo-u dared. Mr. Allen: Tho pensolis liavo not been dona away with, but have been increase! and made moro liberal. Tho Government had provided for pensions upon a much moro liberal scale than tho lion, gentleman had ever attempted or even tnougiit of. Military pensions had been intro.luced sinco the preheat Government tamo into offico, and, undor legislation of last session, widows who suttiered hardship under tho land tax had been afforded relief. Tho hoii. gontleman had to iaco the iacts, and the facts wore there bi'icra him. Some portion of tho Government's policy was to bo found in tho Statute Book of last year, but tho public was less interested in tho policy of past years than in the .policy of the present. Was tlie.ro no humanitarian policy before Parliament this year? The pension was to bo granted to women at CO, instead of 05, and old age pension concessions equivalent to an annual charge of A70,0(H) a 'year were proposed., Was there nothing in the Buuget about land legislation?

Mr. Russell: Is that 'humanitarian ? Mr; Allen said tint it was humanitarian legislation of tho very bust typo to cnablo the needy settlor to sit down under his <.wn viiiu and ng irce. As to the gum lands, ho hoi:sd that they would mako ninny happy homes upon the gum lauds. Tlio Minister dealt in detail with tho subject of increased expenditure. Generally, he said, it had been incurred in meeting tho liabilities oroated by the late Administration. l)ec.aus> the previous Government had shirkod its resiionsibilities in connection with superannuation funds, tho present Government, oil coming into ofliee, had lound it necessary to pay ,£33,000 into these funds. Additional expenditure on working railways totalled .£20;),000. Mr. ltussell: "Which. swallows up your increase in revenno.

Mr. Allen: Does the hon. gentleman object to tire increaso in wages to tho railway servants? Mr. ltussell: I wanted 'to force you to givo the officers a fair show and you would not do it. Mr. Allen: Tho officers aro going to -get a, fair show this year. "Would tlio hon. gentleman explain to the House and tho country how he was going to save these increases in expenditure? Tho Cost of Defence. Mr. Russell: Come down to ifilo3,ooo on defence. Mr. Allen said that he would bo glad to do so. Was tho lion, gentleman prepared to cut down tho Estimates this year for Defence? Last year's Defeuco listimates included non-recurring expenditure to tho amount of about .£IOO,OOO. This year non-recurring expenditure would account for over Jiloo,ooo. Almost overy penny of it tho Government had been committed to by its predecessors. He did not blamo them for incurring necessary expenditure upon batteries and other equipment. Tho Defence Estimates this year and next year would include non-recurring expenditure. Afterwards the annual expenditure upoii Defeuco would come down to or £450,000. Tho non-recurring expenditure would cover tho cost of batteries, mules, horses, etc., none of which ho had bought, although it was quite right that they should be. obtained. Regarding another statement by tho member for Avon tho Minister said that it might be perfectly truo that the revenue was under-estimated in the Budget, but it was a very difficult thing to get an accurate estimate of revenue, much more difficult than to estimate expenditure. The Special Train. It was true that several Ministers had come down in a special train from Auckland, but the mornlKu- for Avon had alluded also to a special train to Milton. This, said Mr. Allen, was a hit at him because Milton was in his constituency. It was triio that hp had spent an enjoyable evening at ifilton, but he did r.ot.go there ill a special train and neither did his colleague, the Prime Minister. Mr. Massey: Another mare's nest! Mr. Russell: The Auckland one was right? Mr. Allen: I said 60. That Balance-Shcet. A good deal had been said about the tablo showing tho position of the country on Juno 30, 1913. as compared with 1912. but what was the table put in for? Did the honourable member for Avon think ho cared twopence about what the other Government did before liimr (laughter.) Tho tiible was put in to let people know how the country had prospered since tho Reform Government had eomo into office. Mr. Russell: On borrowed money. Mr. Allen said tho nosition when the Reform Government came into office was shown, and the position then was that taking all the balances of all the funds th<ro was a deficit of ,£879,000. To make tho comparison fair, it was but just to soy that the linhiUly on nc«,nnit of tho Midland railway should bo deducted.

Mr. Russell: What about unexhausted authorities to borrow?

Mr. Allen: It amuses mo to hear tlieso honourable gentlemen talking about unexhausted authorities to borrow. What is tho uso of these unexhausted authorities if you can't borrow? Jlr. Myers had found tlio valuo of these unexhausted authorities when ho was Minister for Finance. Tho table to which he had been referring was really a rough balance-sheet of the country, and tho difference was that instead of a deficit of J:87!l,000, tho country had a credit balance of .£1,033,000. Tho reason why ho had not put in tho unexhausted authorities was partly because they were so large—over seven xnilions— that ho wag afraid to put them in, and partly because they froro useless. Tlio tablo showed that t!he Govcritmfcnt did not speculate with funds on which they could not rely, and did mako provision for the future. Ho hoped never again to commit tho country to liabilities which there wore no funds to meet. The honourable gentlemen on tho other side had

talked about policy, but there was policy in tho finance of tho Budget which was worthy of tho consideration of every mail in tlio country. Ho hoped tho country might redeem its credit by showing that it was prepared to live on nioro wholesome lines than formerly. ONE OF THE COMMITTEE, THE "HIDE-BOUND TORIES." Mr. G. LAURENSON (Lyttelton) said tho James Allen who was Minister for Fiii&n-cc wets £L very diiicrcut 1110.11 _ fi'OJii the James Allen who used to criticiso tho Government in former years. Ho said tli r 9 present Government had not really introduced any policy measures excopt the granting of the freehold, and the blackest page m tho history 'of New Zealand would lie the pago telling the story of tho turpitude of tho party who, when 111 extremis, offered the bribe of tho freehold at tho original valuo to Crown tenants. Accusing tho Government of being Tories, lie met tho argument of Mr. Anderson that many members of the party had been working men by saying tnat the worst kind of hidebound Tory' was tho man who rose from being a worker to a position of nfflucnco. He attacked the expenditure of half a million on defence. "What good is it going' to db for us?" ho asked. "Hero are wo on two little islands, 1200 miles from our nearest neighbour, and that neighbour of our own. kith and kin, and wo aro spending half a million on this scheme. What ia going to bo tho good of it?" Was it conceivable, he continued, that a foreign force would land in this country ? Mr. lusher: Who introduced thosoheme? Jlr. Lauivnson: I know. Tho Ward Government introduced it.

Mr. Hurries: Didn't you vote for it? Mr. Laurensen: I didn't vote for it, because it went through without u division.

Mr. Herries: Than you voted for it! Mr. Laurcnson saidi ho knew ho had let the scheme go through without a challenge, because ho thought it might be run' cheaply hero. He thought it was more or less useless, too, because ho believed that just as last ceaitury had seen tho sweeping away of slavery tins century would seo the sweeping away of war. Our first lino of defence, he urged, should be soma kind of naval defence, with forts at our seaports. If we must spend half a - million, the bulk of it should go by way of subsidy 'to the Navy, and the rest bo spent hero for the maintenance of the nucleus of a land force, specialised in musketry, lie olaimed that tlio laud tax Vas not nearly so large as it might reasonably be, while the Customs tariff on •articles in common uso was high. Ho suggested that the positions ought to bo reversed. He protested □gainst the wiclcod proposal to encourage immigrants to come to New Zealand.' There was at present a large unsatisfied demand for land, and the population was increasing quite rapidly enough without stimulating it by immigration scheme;;, 110 repeated tlio protest ho had frequently made on other occasion? againtt the iinpM'tation cf a railway, manager at -C3UOO a year.

The debate was adjourned on tlio motion' of Mr. 0. A. Wilkinson, and tlio lloiiso rose at 11.40 p.m.