THE COLONY’S FINANCES

Gisborne Times, Volume XIX, Issue 1541, 24 August 1905, Page 2

THE COLONY’S FINANCES

JTo.the Editor Gisborne .Times. Sir, —The Right " Hon, Mr ' Seddoo, Colonial Treasurer, in submitting bis teeth Budget to Parliament on July 25th, said that finance, is of paramount impoVt&nct, and the barometer by which the progress of the colony may be accurately gauged. In this remark all will agreo with him. Ia what might be called the peroration' of his Financial Statement, be eays that be h&s placed before members the position.of the colony in a well-merited rosy hue Opinions will differ as to the merit of the Financial Statement, and as to the present position of the colony in respeot to Bnanes, I propose, sir,.to take a few.- points in the Statement, and to consider them as briefly ' as possible.. k'.'V--'. The Treasurer says in the parly partof his Budget; “ The. transfer of £600,001] last year from the Consolidated Fund marks an epoon well worthy of note, sts-r. ing that this sum at 4 per cont is equal to a saving of interest to -tho taxpayer of £24,000 per annum.' 1 ~Noio the word epooh, and then think what alhtbis means. On the faoe of it it -looks’satisfactory; it has a rosy hue. But that £600,000 viu nearly the whole of last year's Consolidated Fund surplus of £649,741. What I with to point oat is that that surplus oame from the taxpayer, largely in direct and indirect taxation; Farther on in the Statement i table is given showing that from 1891 to 1905 the sum of £4,355,000 has been transferred from the Consolidated' to the Public Works Fund, with the result of a saving of an additional interest charge oi £143,800 per annum. This result we era expected to be 11 delighted " to hear of. To obtain a big surplus in the Consolidated Fund year after year, tbe subject is up to the hilt, and ithen the Colo9Ki Treasurer leads us to infer that by transferring this surplus to the Public 5 Works Fuud, the taxpayer is eased of his burdens. I do not thiok that many of ns'will be impressed by suoh reasoning.. It reminds one.of the story of Pat’s riding along with a load on the saddle in front of- him. To .ease his horse, Pat transfers the load from the horse’s shoulders to his own; and jogs along quite satisfied that his weary steed ia enjoying a well-merited rest. Poor deluded Pat and poor deluded taxpayer! In considering another table in the Statement, showing the balances of the two i funds, Consolidated and Public Works, for, I the last 14 years, it must be borne in mind that in each of the yearly balanoes of tho latter Is included the amount transferred frdm the former. Although we are told by the Premier that it is frequently written and stated by ignorant persons that nonexpenditure on pnblio works helps to swell the credit balanoe of the Consolidated Fund, and that there is no connection between tho two, yet wo mast not forget that of the balanoe or surplus of £861,000 in the Publio Works Fund of 1904-05, that £600,000 comes from the Consolidated Fand surplus, pad that the balance in the former fund is undoubtedly the great | amount it is through the non-expenditure oh much-needed public works. Yet we [ are asked to shake bands with ourselves on the strength of this big balane®. Really, slr,:there is not much joy'in the faoi, as most of the money should have been spent. However, the money is there, and there ia satisfaction in that, 1 but the soOner the authorised works are finished,and the balanoe reduced by that means, tbe better it. will be for the colony. ’: What is open to objection is that the Colonial Treasurer endeavors in hiß Statement to make politioal capital out of these big balances, and- that the unthinking are befooled into ' supporting a Government on account’ of these rsourriDg gm-_ pluses. The surplus of tHree-quartern of a million’ in the consolidated’fund surely indicates that in this ooruntry, where the cost of living is admittedly high, more reductions could be made, and ought to have been made ere this’in customs duties. The balance of nearly a million 1n the public works’ fund must bo nice reading to the back blocks, who instead of shaking hands with themselves will feel inolined to kiok themselves for , giving support to a Go. vernment that hang’s on to the oash go tenaciously, that it 'will not even spend the money on works authorised, by Parliament. , ‘

At the conclusion of the Statement tha Treasurer cougcatulates (the Statement is fall, of congratulations) himself, and thal country on the fact that" our exporimentsW’ have so far proved successful,” There nd doubt as to the present Government’s experimental legislation, but. the peopla' have had to pay, for it, It is all very we.J to be told that we are the envied of nations, and that our experiments have been largely copied by other countries, and that New Zealand is a fair oonntry, inhabited by a contented end happy people. These state* ments have a rosy hue; to honestly credit them one must look at New Zealand through roso-coiored spectacles. I think, sir, there are signs that a new Liberal Parly will arise out of the ashes of the old; not a party of bigoted extremists, for they cannot be styled true Liberals or ptogreesives, but a party of “ ardent reformers, not aspiring to position, and oaring very little for wealth,” who will carefully legislate and honestly administrate for the general good. , That there is need for, suoh in, I think, proved by a study of the finance of the colony, as shown by the Colonial Treasurer in his financial statement of 1904 5. —I am, eto.l ' WDXMPBr