THE GENERAL ASSEMBLY.

Evening Star, Issue 3309, 27 September 1873, Page 2

THE GENERAL ASSEMBLY.

[By Electric Telegraph.] Wellington, September 26. In the Upper House, the Colonial Secretary moved the second reading of the Auckland Loan Bill—Mr Campbell opposed the Bill The Colony was asked to sanction a Provincial loan which it would ultimately have to pay. The schedule of the Taranaki Bill gave absolutely no security. The Provincial bonds wou’d ultimately fall into the hands of speculators in bonds. The Colony was borrowing L 2,050,000 at four per cent., while the Provinces would be borrowing at six. The amount the Provinces were to borrow between the passing of the Acts and the end of the year 1874 was L 293,000. This was done to enable the Colony to borrow a loan at Home. He was told that some of the land in the Auckland schedule was not worth more than a shilling an acre. In the Hawke’s Bay Loan Bill the jetty dues were set apart as security, although the breakwater was not yet built The members of the Lower House voted for the loans to please their constituents. He believed the whole Colonial estate was already mortgaged as security for loans, and they were now mortgaging it a second time. Was this honest? —Mr Hart opposed the Bill If the Provinces made default the General Government wou’d have to pay the money.—Mr Waterhouse opposed the Bill It was not desirable in the present state of the labor market that these works should be commenced. It would become necessary in the course of time for the Colony to take over the Provincial bonds. He would move an amendment to the effect that the Council declined to sanction the renewal of Provincial borrowing, but would be prepared seriously to consider any proposal by the General Government for Provincial loans upon the security of the Colon y, and for the public works initiated by the Public Works Act, 1870. —Dr Grace opposed the Bill Colonel Whitmore would be in favor of annual loan Bills. The present Bills were not a necessity for the Colony, but for the Treasury. They were designed to make a heaven of the Treasury benches ; and were to maintain the equilibrium between the General and Provincial Governments. The members of the Lower House voted from Provincial and party obligations. The House adjourned till 7.30.

lu the evening, Mr Sewell said he would give his reasons for not recording a silent vote. He agreed with the manner in which Mr Waterhouse supported the motion. JJe regretted that he was unable to support the proposed measures. It was too late in the session to reconsider them, and he hoped every member of the Council would give unhesitatingly an expression of disapproval. The Hills were brought down to the Council in the most obnoxious manner possible. ICvery Bill had to be considered on a general policy, and there could be no chance of their being accepted. U was possible that a measure would be brought down at the last moment that they would bo obliged to swallow, The measures reflected disgrace on the Ministry, from which Dr Pollen should bo excepted. Dr Pollen told the Council that the .Bills were of vital importance to the country, and were recommended by all the influence of the Ministry ; but the Bills brought down ought to have been of an honest character, and ought not to have been brought into the Council in the present manner, disgracing the Government and the Legislature. Xu the House, the Otago Reserves Bill was committed and reported. The Interpretation Act Amendment Bill was read a second

time. The Railways Bill was read a second tim«. The Civil List Amendment Bill was considered in Committee.

September 27. In the Upper House last night, Mr Sewell said the securities in the Provincial Loans were bad. The total number of acres in the schedules was 1,900,000, valued at L 1,500,00 acres of this were valuele-s. There would be no income from the securities, the only value of which was derived from their Colonial endorsement. The Bill should provide means for rating, but the measures were only introduced to keep the Government in favor with the Provinces. Blocks of land had been set apart as security, which were already tapued by the Imperial Guarantee Act, 1867. Loan and interest were then marie changeable upon the Waste Lands of the Crown, vhile the revenue arising therefrom was territorial and ordinary revenue. The Imperial Government stipulated at the time that any measure affecting that security was to bo* reserved for the assent of the Queen ; there* fore, the Provincial Loan Acts were worth nothing.—Mr Pharav.yn said much of the land offered as security was not worth a shilling per acre. Provincial borrowing must cease. The passing of the Provincial loans would have a bad effect upon Colonial securities at Horae. The Upper House was not opposed to direct taxation.—The Hon. J. Bonar said there was a balance of L 184.215 to be expended on roads and bridges in the North Island, out of i 215,789 voted. Out of the four millions lorn, only L 545.102 had been expended up to the thirtieth of June, and after deducting for plant and rolling stock, |L2,441,798 was still unexpended on the railway account. There was, therefore, no immediate necessity for Provincial borrowing. The labor market was scarce—all the available labor was absorbed. Large owners of property were willing to bear a rate on property, because it would show the people the burdens they were taking upon themselves. He would vote for the amendment and against the Bill, because there was not sufficient security, and no rating clauses. He said the Colony must ultimately become liable. The credit of the Colony would be injured at Home by Provincial borrowing. He defended the Council against the charge o£ selfishness. The Colony was indebted to an extent beyond which it was not wise to go at present. Loans for L 2,750,000 by the General Government were already before the House. —Mr Rhodes opposed the Bill. Provincial borrowing was a reversal of the Public Works Scheme.—Mr Holmes opposed the Bill. There were too many changes in legislation. Mr Vogel’s policy was sensational. He would support the amendment.— Colonel Kenny was opposed to Provincial borrowing, because the practice was opposed to the Consolidation Aet, 1867. He would support a loan for the Province of Taranaki on the Colonial security. It seemed extraordinary that Auckland should want an estate purchased for her under the Immigration and Public Works Loan Act, when it was represented in the schedule that she had a landed estate of 250,000 acres. He referred to the absence of rating clauses. —Dr Pollen replied, urging the necessity of the loans to pnsh on Provincial works. The Council then divided on the motion for the second reading as follows Ayes, 6—Dr Pollen, Messrs Baillie, M'Lean, Richmond, Scotland, and Taylor. Noes, 24—Messrs Ackland, Bonar, Campbell, Chamberlain, Edwards, Fraser, Grace, Hart, Holmes, Johnston, Kenny, Labman, Mantell, Miller, Nurse, Peter, Pharazyn, Abodes, Russell, Sewell, Stokes, Waterhouse, Whitmore, Wigley, The other Provincial Loan Bills were thrown out on the voices. ______ (FROM our special correspondent,)

The Government have come to no decision as to their policy, and will not do so until Monday. Many supporters urge the idea promulgated in the Independent, relative to introducing a different class of men into the Council, proposing the dissolution of the Lower House, that the Lords’ honorarium should be stopped, a fresh creation made, and another session called togther three mouths hence. They say they can carry this resolution against the Government, should the Government oppose it. The Cabinet meet this day at eleven. There were very strong expressions of opinion in Bellamy’s last night that the Lower House should be unanimous in appealing 'to the Home Government to alter the Constitution Act. The Government and their supporters will push an analagous measure through in the same manner as the others. It is useless bringing in a measure to alter the constitution of the Council, the Government say, because the Council will not pass such a measure.