THE GENERAL ASSEMBLY.

Evening Star, Volume VIII, Issue 2242, 14 July 1870, Page 2

THE GENERAL ASSEMBLY.

READJUSTMENT OF PROVINCIAL BOUNDARIES. On the Gth inst. Mr Reynolds moved his resolutions on the abve subject. Ho said.— Sir, in moving the resolutions whicli stand in my name, I CM the responsibility 1 have taken upon myself, and although I am aware that I shall not be able to do justice to so important a subject, 1 wil not shrink from tho task. 1 know that I shall be expected to combat tho prejudices of some honorable members, who, from various causes, will nut be satisfied with anything b ss than the entire abolition of Provincial institutions, and the formation of one central Government for the whole Colony. Another class, who consider themselves heaven-born politicians, will not accept any measure, be it ever so good in itself, that does not emanate from one of themselves. But, Sir, although 1 may not succeed in securing the support of those honorable members, I feel confident that in proposing these resolutions, I am advocating the interests, and I believe the views, of a large section of the inhabitants of this Colony—a section who will no longer submit to be misgoverned by those whom they send to this House to represent them I do not maintain that these resolutions are perfect or incapable of amendment. On the contrary, I shall be quite prepared to accept any suitable amendment which nvey be pro posed, provided itafibmsthe principle laid down in them. 1 seek now only toaffimi the principle: this done, further legislation must tollow. A Bill will have to lie introduced, filling up the details I think 1 may safely affirm that a very general opinion exists, both inside and outside these walls, that a change is imperative—that the legislation and administration of this Colony is not at all on a satisfactory basis. On the the one hand, the present provincial and county system arc ill adapted to some of the smaller divisions of the Colony; while, on the other hand, one central legislative and administrative body would prove most injurious to the interests of both Islands. There really exisls little or no community of interest between tho two Islands on any one subject involving the settlement of the country. Different - in some respects opposite laws are required for each Island. 1 need not qu te honorable members’ speeches to prove this, as those speeches, delivered in past sessions, are still fresh in the memories of many honorable members. The representatives of this, the North Island, have over and over again, for years past, attributed all the ills that have befallen them to the interference in legislation of the re rcsentatives of the South island, and have as of en affirm°cl that had they been left to themselves to deal with all Native questions, they would have been prosperous and happy. Then, again, we hear ic asserted in the South that this Legislature is so occupied with Native affairs, session after session, as to exclude all necessary domestic legislation ; and further, tint our heavy taxation and general depression is to be attributed to our connection with this Island. I find the indebtedness if tho Colony, exclusive of provincial bans, amounts to L 4,215,113, with an aauual charge for interest and sinking fund of L 269.652, almost /the whole of which has been expended in , and on behalf of the North leb.nd. This indebtedness throws a liability on the Colony of nearly L2O per head of the population, and involves extra taxation to the extent of over LI per herd per annum : thus throwing on the Soutiem Island a liability of somewhere about 12,5(34 oGO, and an annual payment for interest of LIGO.IGB. But, Sir, I wil' not dwell firfchcr on the “ miserable past.” I say le* bygones bn bygones, and let us endeavor to prevent therecurrenee of that “ miserable pad” for the future. In my effort to show the advisability of adopting these resolutions I will, as far as possible, confine myself to the financial policy of the Government as submitted to the House on Tuesday by the’ColonialTreasurcr. L there find tlnyMpiilation of the Colony estimated at souls ; 97,800 in the North Island and 152,200 in the Middle Island ; and the revenue of the Colony for the year 1870 - 71 at LI 051,500 ; -which, taking for my basis the last complete R itistical returns, would give about 1.418,000 for tho North Island and LG33, 500 for the South. Tho proposed expenditure for the current financial year for tho North Islard for special purposes amounts to L1,044,1D5, made up tuns : L 400.000 for roa-bs ; 1.200,000 for purchase of land ; LI9S,C(M capitation allowance ; Li9,5(30 proportion oi U)f) 000 for road districts ; L8,0 ; d0 accouit of Native population in island ; 1480,000 fir defence ; L 7,000 for Native schools ; Liß,-2'2 for Native charges under Class 6—Gcnaal ; L 7.000 balance of purchase of steamer Luna; L5,01G general charges Militia, Voludecrs, and Armed Constabulary total, 1,1344 598. The allocation to the South Islaid, also for special purposes, is ; L 400.000 : or railways ; 1,3 375 special rate to Weatl.nd ; LU0,440 proportion of special rate for district roads ; L.304,400 captitation allowance ; total, L 738,215, as against 11,044,598, But this is not all. It is also poposed to hand over the confiscated lands fo the North Island.

Now, sir, I have no doubt that I shall bo met by a statement than it is proposed to recoup to the Colony the sum of L 200,000 for purchase of land, but I do not put the slightest reliance on such an engagement. We have the experience before .us that all engagements so entered into with the North Island have been repudiated in succeeding sessions, and 1 for one have no intention to run similar ricks tor the future. Sir, it may be supposed from my remarks that I am making an onslaught on the Government policy as brought down by the Colonial Treasurer ; such, however, is not my intention. I consider the statement as one of the most aide, if not the most able, that I have heard in this House. It is, however, a little too one-sided to meet with the ent.re approval of the Southern Island. If dovetailed on to the resolution I am now submit ting to the House, the policy enunciated would, I believe, recceive the support of a large majority of the inhabitants of the Colony. I fully appreciate the difficulties under which any Colonial Treasurer must labour until there is a complete separation of the liiianccs of the two Is ands. Is it at all likely that the Southern Island will quietly submit to contribute its revenues, as it has been doing, to the North Island? Teat it will quietly consent to submit to contribute for spccia l purposes to the North Island the sum of L1,044,51)8 as against L738,2J5 to hers l If, while her contribution to the colonial revenue is somewhere about LG33.500 as against L 418,000 contributed by the North Island. Then again, as I have already indicated, she cannot but complain that session after session all domestic legislation must give way to the Native question. Sir, it is full time that the North island should cease to legislate on the domestic ail’airs of the South, and that the South should cease to legislate on the domestic affa ra of the North —in which I of course include Native subjects ; and it is with this view that 1 have brought' forward these resolutions. By the lirat i seek to affirm that the present boundaries of tho Provinces and Comity of Westland he abolished, and that each Island be formed into one Province, either under a Lieut.-Governor or Superintendent, I do not make this proposition because 1 have lost faith id tho provincial institutions of some .of tho larger Provinces ; but it must bo admitted that some of the smaller must cither be ruined, or become a burden on the Colony for ’ ears to come. If the Islands were divided into two Provinces, the cost of legislation and administrate n could be reduced by somewhere about LGO.OOO per annum, and each Legislature would be able to devote its whole attention to the settlement (if the country and to domestic legislation. Northern members would no longer have reason to cm plain that the mismanagement of the Natives was attributable to the interference of the South ; and in like manner tho Southern members couid not accuse the North of impeding their progress and general prosperity. The second resolution is intended to specify generally the subjects to which the Colonial Government is to devote its addition, both as regard legislation and administration. Tho Bill which would have to be introduced would require to be very distinct, so that there could be no doubt hereafter as to the functions of each Legislator e. 1 think, sir, that the depaxtmei ts indicated in this resolution are of' Colonial rather than Provincial concern, and should, therefore, be dealt with by the Colonial Legislature. It might be necessary that some of the Acts required for each Province, in connection with justice, should, in the first instance, be passed by the Provincial Legislature and afterwards validated by the Colonial. These exceptions, howevi r, would more particularly apply to Native questions. With regard to the Postal Service, there can hardly be two opinions that it is purely of Colonial con' ern. It would be folly to suppose that any one member of tho Hons : would take any other view of the question. Under postal I include the Telegraph Department. The Customs is another department which I consider ought to be under Colonial rather than Provincial control; were it otherwise, it would bo next to impossible to prevent smuggling between the two islands. I do not exactly know how my views on the tariff meet those of the persons most interested—tho taxpayers ; but I do not hesitate to state my own opinions. I am in favor of reducing the Customs duties on all commodities of general consumption, excepting such as are luxuries, and such as we can produce in the Colony, to the verv lowest possible rate. I hold that the Customs duties should only be maintained to such an extent as would provide a sufficient sum to meet the Colonial charges, including those indicated in this resolution, and that the Provinces be required to levy special taxation for Provincial purposes, either by an income or property tax, or both. No doubt oven under this arrangement either of the islands might receive a small share of the Customs revenue, as one island might require a larger Provincial expenditure under these departments than the other ; still it would he so small as not to affect the principle. 1 may here remark that, under Colonial charges, I include in’ crest and sinking fund on all Provincial loans up to tho date to be Provincially charged. Tho Colony is liable for these items, and must therefore make provision for their payment. As regards future loans, I should be decidedly ag inst any borrowing by the two Provinces; but I would not object to the Colony borrowing for immigration and opening up the country by railways, roads, and bridges, upon its receiving security either over 1-md revenue or a special tax imposed by tiic Provincial Legislature. But in all such eases a Colonial Act would require to be passed, ratifying the Act of the Provincial Legislature. The third resolution defines what is to be Provincial and what Colonial revenue. It will lie seen frqin the rosqlutjou as I have ame Mod it exactly what is meant ; that after deducting tho Provincial charges, wh eh included the interest and sinking fund on Provincial loans, and also a capitation charge for the maintenance of the Colonial Government, the balance of revenue shall ho handed over to tho Province in which it is raised. Included in the maintenance of the Colonial Government, I of ciurs- include all general charges in connection with the fie >artm nts referred to in the second resolution. It wid lx; observe I here that in proposing a capitation charge I do not insist upon that charge being equal in both Islands. I should feel disposed to act liberally with regard to this subject. Although I do not for a moment admit that after the large expenditure in the North Island, a very large proportion of which to be paid by the Squth, the North is at all entitled to demand any further contributions. I think there is a moral obligation on the part of tho South to contribute for some definite period a larger capitation allowance to what arc known as Colonial charges. I know that many of my

Northern friends will reply that there is a great difference between the North and South, inasmuch as the one has litde or no landed estate, while the [other has a very largo one with which to supplement the Provincial expenditure. I will ad-nit this, but then it must hj - home in mind that intlie South the purchasers of land from IL- Government have paid generally from 1. 1 to 1,7 or LS per acre for rural land, while in the North, after deducting the cost of administration, the freeho’ders have acquired their land for next to nothing, and in many cases a gift. Under those circumstances, it would not be at all unreasonable to propose that such freeholders should contribute towards the revenue of the Province, by means of a landtax imposed by its Provincial Legislature, such sum as might be necessary for carrying out its Provincial functions. I would also propose, in this arrangement, to hand over all the confiscated lands to the Northern Island, which under careful administration, ought to bring in a very considerable revenue for provincial purposes. I now come to the fourth and last resolution. Seeing that the whole Colony is liable for the Colonial debt and the Colonial charges, I have deemed it advisable by this resolution to provide that the whole of the Provincial revenue should, in the first instance, he paid to the Colonial Treasurer, who after deducing the Colonial charges, and such expenditure as is Provincially charged, would hand over the balance of revenue collected in each Province to its respective Treasurer. I knew' that some of my Provincial friends argue in favor of the Provincial Treasurers collecting the revenue, and paying their respective contributions to the Colonial Treasurer. This course to my mind, would be most unsatisfactory. I can imagine a case where the Provincial Governments might overrun the cunstable, and expend not only their Provincial revenues, but also that portion which of right belonged to the Colony ; and that when funds were required for the pay ment of Colonial charge*, the Colonial Treasurer would find himself without the means to meet his liabilities. 1 can also imagine a case where either Province might desire to repudiate its Colonial liability, and might, by withholding its contributions involve tha Colony in financial embarrassments. To avoid either of these, or any other such contingency, I have submitted the rear • Union now under consideration as the only secure way of carrying out the whole scheme. I have heard objections taken to these resolutions as a whole, because they either do not go far enough, or else go too far—that they neither carry out the principles of separation nor union. My object in submitting them is to carry out the principle of separation as far as it is possible for thorn to do so, consistently with our circumstances. Supposing that 1 had proposed insular separation in its complete form, the liabilities of the Colony would have had to be allocated to the t wo is’auds by moans of a mutual understanding or arrangement. But, sir, I would ask would the Colonial creditor agree to any such allocation as might be fixed upon ? Would he not hold the whole Colony liable, and if one island failed to pay its portion, would he not come down upon the other to the full extent of his claim ? Again, separation, pure and simple, would require to be ratified by the Imperial Government, which might involve a delay of some years ; while the principles embodied in the resolutions now under consideration might bo passed at once into law. Tbe advantages to the smaller divisions of the Colony which would accrue through the adoption of the principle I am advocating, I think are so obvious that comment is unnecessary ; and the advantages that the two islands would derive from the arrangement would be freedom from interference by each other in their domestic legislation and administration, a definite finance, and a saving of cost of legislation and administration. I feel convinced that if the bases of these resolutions were faithfully carried out, we in the .South would be in a position to double onr population within the next four or five years, and would thus reduce the whole taxation of the Colony. I also believe that if the North Island became self reliant and untramelled by the South, she likewise would have a similar career before her —that she would bo more prosperous, and instead of wasting her revenues on Native wars, sbe would utilize her Native population for the advancement of her own Provincial purposes. As representing a Province which possesses a larger liability than any other it will no doubt lie expected of me to show how the union of the various divisions of the Middle pr Southern Island would financially affect these divisions. I find the liabilities of the Middle Island to be :—Nelson L 70,754, and annual charge interest and sinking fund L 3.43 5; '-'arlborough L10,60(3, and annual charge, interest and sinking fund LBSS ; Westland L 198.961, and annual charge, interest and sinking fund L 12,477 ; Canterbury L 661.109 and annual charge, interest and sinking fund L 41,071 ; Otago L 726.778, and annual charge, interest aurl sinking fund T1.04,G4:7 • Southland L 442.908, and annual charge, interest and sinking fund L 27,222 ; but in order to arrive at a just conclusion, we must take tbe assets into consideration, and these can be best arrived at by fixing upon them the bases of Land revenue. We find that for the three quarters ending the 01st of March last, the Laud revenue amounted to —ln Nelson L 23.210, Marlborough L 4,775, Westland L 2,680 L3‘2 f G73 ; Cantorbnry L 31,930, Otago LI 19,247, Southland, L7.103—L158,280. Thus the laud revenue of Canterbury, Otago, and Southland for the three quarters ending the 31st March last, amounted to the sum of L 155.250, from which I will deduct the interest and sinking fund for the year against these Provinces, which amounts to L 122.940. thus leaving an oxce-s over these charges of L3d,340. IleaL ing similarly with Nelson, Marlborough and Westland, wo find the land revenue for the same period to_ amount to L 32.673, from wlneh deduct in lik<> manner the interest and sinking fund, amounting to L 15,778, and there is exe'-ss of L 13,903. Thus the •h’-ee divisions having the l.vgost liability have an excess of 1,35,340 as against Ll3,9o3—the excess of the throe divisions having tho_ lesser liabi'ity ; so that, in a financial point of view, the union cannot bo objected to by Nelson, Marlborough, and, Westland. Under the union, it would of course be absolutely necessary in the Act to make provision that all rights of' private parties should be given effect to by the Provincial Legislature This wo#d apply more particularly to the land regulations of each of tbe present divisions. It would bo also necessary to provide that there should bo one common purse for each Island, and that all expenditure should he voted by the respe -rive Provincial Legislatures, where the expenditure w;is not of a purely general provincial interest. I would advocate that the votes of the Provincial Legislature be

xpended under local control or supervision, ither under simple and inexpensive municipalities, or under road boards. 1 think, Sir, that I have now laid down the general principles of the resolutions. 1 do not expect that’/ carried, they would be brought into law tills session. I think the ipiesuon is too important to pr cced further with it than to affirm the general principle, leaving further legislation for a new Parliament, thus giving the electors of the Colony an opportunity, through the new elecUons, of expressing their opinion. On the affirmation of the principle I have a right to demand the votes of the Northern members, seeing that they have invariably deplored the interference of Southern members in Northern affairs. I claim the votes of Otago members because the principle has been frequrntly affirmed by the representatives of that Province in the Provincial Council. While I cannot on ihat ground claim the votes of members of the other Provinces of the Middle Island, 1 will do so on the ground that their constituents would bt nefit by the union. I have lately Leu i,> Southland and Canterbury, and as far as 1 could judge, as a stranger, of the feelings uf the people, I am led to believe that tee affirmation of the principle I have laid down would bo pretty generally approved of. have felt the difficulty of the task I have undertaken, but all I wish the House to Jo is t > affirm the principle that it is ad visable that these resolutions should be taken up by the new Parliament, and I expect the electors throughout the Colony will be able to indicate, beforeageucral election, if theyare in favor of the proposed change, and that tho next Parliament will indicate distinctly the view of the people of the two Islands upon the subject. I have to apologize to the House for the very imperfect way in which I have aldn ssed it. Although the resolutions have not been brought forward by one of the leaders of a party, I trust they will receive that attention which I consider they merit.