GENERAL ASSEMBLY.

Globe, Volume I, Issue 45, 22 July 1874, Page 2

GENERAL ASSEMBLY.

(j ?er Anglo-Australian Press Telegraph Agency.') Wellington, July 21.

In the Legislative Council,

Mr Menzies asked the Government whether they proposed to introduce a Bill to provide for the revision and correction of provincial electoral rolls. He said the provincial rolls were full of mistakes, and very liable to errors. The Colonial Secretary said the Government had no intention of bringing in a Bill, but would give their best attention to the subject. Hon R. Campbell moved that a Surveyor General should be appointed to inspect the surveys of the whole colony. Ho said the need was very great. So that if a SurveyorGeneral with a good stall was appointed to go round the colony and inspect the surveys, every necessary reform could be effected.

The Hon Colonel Brett said it would bo a very great expense, and new surveys entirely would have to be made. The Hon Mr Waterhouse said a complete trigonometrical survey would be necessary for a reformation of the surveys. He thought the whole question should be referred to a Select Committee, whose evidence would be overpowering. The Hon Dr Menzies approved of the plan, but thought it required considerable amendment.

The Hon Dr Pollen thought the Council and the public were indebted to the action of Mr Campbell. The Government last session had endeavored to pass a vote of £SOOO for surveys, but it was negatived. The Government would gladly see the spirit of the motion agreed to, reserving to themselves the right of not adhering strictly to its terms.

The Hon Mr Campbell in reply, thought there would be no conflicts between General and Provincial Survey Departments. He had intended only to indicate to the Government a course it was allowable to pursue. The motion was agreed to without dissent.

The second reading of the Westland Loan Act was postponed till Thursday, and the third reading of the Inspection of Machinery Bill axed for Friday. The Supreme Court Judges and !Post Office Savings Bank Bills were read a first time, The Council adjourned at 3.30.

In the House of Representatives, Mr Fox has presented a petition for the incorporation of the Colonial Bank of New Zealand, and a Bill to that effect has been introduced.

Mr, O’Neill has presented a petition from the Thames engineers, asking for an introduction of the eight hours system.

Mr Pyke has given notice of his intention to ask whether the Government intend to take any steps to remove the restriction upon the importation of timber made by the Southland Land Board. Mr Reynolds has given notice of his intention to move as to whether the motion for increasing the excise duties was a breach of faith, or whether it was desirable to abolish distillation.

The following Bills have been introduced and read a first time; a Bill to amend the Goldfields Act, 18GG (Mr Curtis); the Waterworks Loan Bill for Nelson (Mr Curtis); a Bill to amend the Licensing Act, 1873 (Mr Vogel.) The Civil Service Act Amendment Bill, and The Government Insurance Annuities Bill were reported with amendments,

Mr McGLASHAN asked the Minister of Justice if the Government have taken into consideration the punishment awarded to confirmed inebriates in the various magistrates’ courts, in sending such persons to gaol, in so far as such punishment docs not meet the evil by effecting a cure, and if the Government will propose such alteration in the law as will provide that such persons may be treated as lunatics instead of being sent to gaol. Mr O’Rorke could not. see that the general Government had anything to do with the matter, and their attention had not been called to it. The question of lunatics was one exclusively dealt with by the provincial authorities. Still as the Government had its attention called to the matter it would give it some consideration. THE POLYNESIAN SCHEME. The Premier laid a large batch of papers regarding the Polynesian Islands upon the table. In doing so he said these papers would naturally suggest to bon members to ask what course Government proposed to take upon the subject. Hon members would find the papers exceedingly interesting. They were a compilation of reports from official sources on the South Sea Islands. Some of the papers had been published before, but were now collected together. There was also a useful map, and various Ministerial memoranda regarding the islands, besides a variety of other matters relating to the subject, altogether being the chief of the information obtained upon the subject. As he said before, the question that would suggest itself to hon members’ minds would be as to what course Government proposed to take in reference to the papers which would be found in the blue book, upon the question of establishing or encouraging by way of subsidy, the establishment of a commercial company to trade between New Zealand and the Polynesian Islands. Whether or not the Government would proceed with the question this session he did not know, but he did not hesitate to express an opinion that it was a question of very great importance to New Zealand, and one which deserved the consideration and attention of members. He was quite aware that any proposals of this kind were open to objection, and fears were sometimes entertained of Government engaging in things which private persons could carry out. There was also the theoretical objection that trade could not be controlled, but for his part he considered that the maxim was one which every day experience contradicted. There was nothing in proposals shadowed forth in papers which the Government were ashamed of, and .they were quite prepared to leave the question to stand upon its own merits before the House. He believed that the question if rightly dealt with, was one which was hardly second in importance in its effects to the Public Works and Emigration scheme upon which the colony had embarked. It was necessary to avoid the mistake of only giving to the colony one kind of occupation. They must provide the means for the energies of those whose inclination directed them to commercial pursuits, and give them scope to carry them out. All were not content to till the soil, or these beautiful islands would not have been discovered. In these islands they had means open to the young men of New Zealand to carry out commercial operations which could not fail to hare a beneficial effect upon its commerce. He did not hesitate to say' that the day was not far distant when New Zealand would become the centre of Polynesia, and when the Governor of New Zealand would be also Governor-General of the Polynesian Islands. This question was not one of parties, and whether Government would proceed with it or not this session would entirely depend upon what opinion members would form upon the subject. The risk they would run upon entering upon any scheme of the kind would be trifling, as compared with the results which must arise by making New Zealand a great and productive country in respect not only to its interior but outward resources. [Applause.]

THE FINANCIAL STATEMENT.

Mr Vogel made his financial statement last evening. We are indebted to the Government for the following abstract of it. The amounts are stated in round numbers. Mr Vogel said that the statement would not only be shorter than usual, but it would be unprecedented, on account of the prosperity which it evidenced. The statement was made at an earlier period than had been customary—a result for which he was indebted to the untiring exertions of the Treasury officers in preparing the accounts. Last year it was anticipated that the actual results of 1872-3 would leave a surplus of £3BOO, with which to begin the year ; but it proved that there was a difference of £6OOO as compared with what was anticipated. This arose partly through under estimating outstanding liabilities, and partly from some assets not being realised, the result being that instead of a surplus of £3BOO there was a deficiency of between £2IOO and £2200. As to the loans, it would be remembered that during the last session an announcement was made that 5 per cent debentures to the amount of half a million had been sold at £2 10s premium. In January last the loan agents invited tenders for one million pounds at four and a half per cent. He had been favorable to the change to 4 per cent, but he approved of the action of the agents since they had inserted a condition that the debentures might be retired at any time after five years. The half million borrowing at 4£ per cent interest realised £9B. Making allowance for redeeming the discount, this was tantamount to borrowing at the rate of £4 12s Gd per cent. It was originally calculated that money for the Immigration and Public Works policy would have to be borrowed at per cent. It was gratifying therefore to know that the average rate of interest on the loans for those purposes yet negotiated, including allowance for recovering discount, amounted only to £4 14s lid per cent. It was right that he should say that the market for colonial loans was n< t so favorable last year as seemed to be then promised ; thee was now no demaul for such debentures in the colonies, 'i his arose through the demand for capital for local enterprise, but it had to

be borne in mind in considering the question of the borrowing powers of the colony.

The aggregate amount of the public debt after deducting the sinking fund accrued was £12,500,000, and the annual charge was £777,000, of which £554,000 had to be paid by the colony, and £223,000 by the provinces. After explaining the position of the various loan accounts, Mr Vogel referred to the land fund. This, he said, showed a remarkable progressive increase. During the year 186970, the receipts, exclusive of gold revenue, wore £209,000 ; during 1870-71, £208,000 ; during 1871-72, £326,000; during 1872-73, £889,642 ; during 1873-74, £1,038,000. The Post Office Savings Bank account showed an increase of deposits of £137,000 ; the total deposits in those banks being now £682,000. The revenue of the past year exceeded that of 1872-3 by £300,000, and it exceeded the estimated amount by £239,000. This result was very large when the proportion it bore to the whole amount of the revenue was considered.

He could not state accurately the increase that had resulted from the substitution of ad valorem for measurement duties, as there had not yet been sufficient time to classify the returns, but there could be no doubt that the new duties produced more largely than the measurement duties. He was glad of this, both on account of the result and on account of the testimony it bore to the honor and truthfulness of the commercial classes of the country. He emphatically expressed the opinion that taxation had not pressed heavily on the bulk of the people, and that under the new system the duties had been more evenly distributed over articles of luxury than was the case formerly. After deducting expenditure and liabilities, and allowing £20,000 for liabilities yet to come in, and paying off £15,000 of Treasury bills, there was a balance at the end of 1873-4 available for the service of the current year amounting to £207,000.

After explaining at some length the position of the railways, Mr Vogel said that the revenue of the country was increasing so much simultaneously with the introduction of immigrants and the prosecution of public works, that there could no longer be any doubt as to the success of the policy, and the colony would be quite safe in taking over the main trunk lines of railway whenever it might be found convenient to do so, and in relieving the provinces from all liability on account of those lines. Apart from the revenue which it was now certain would be derived from the railways in excess of working expenses the consolidated revenue of the colony had during the last two years increased by £412,000 or within a few thousand pounds of the total annual charge which the railways, when completed from one end of the colony to the other, would entail. It must be pointed out, however, that further authority for borrowing, to complete the railways, would have to be given. However successful the Immigration and Public Works Policy might be, it must be remembered that it was necessary to meet the colonial requirements before straining the credit of the colony for other purposes. Consideration of the fact of the railways being pushed on more quickly than was originally intended, and of the fact that it was not desirable to encourage too largely the construction of other works, impelled the Government to decide not to renew their proposals of last year as to Provincial borrowing. The Government were prepared to allow a limited amount of assistance to provinces, but such assistance to be rendered through the. Colonial Government, and to be charged either against the amount for settlement of immigrants or upon the consolidated fund, but with power to the Government to issue treasury bills, if found necessary, to meet it. As to the assistance to be given to separate provinces, Mr Vogel said “ first, in regard to Auckland, the Government during the recess undertook to ask Parliament to allow the province to raise £50,000, to he advanced from time to time, extending over a period of about three years, for works upon the Thames Goldfields. The security in this case, besides that of the province, is of a specific and large nature, and .the importance of the object to be gained is not to be denied. The Government besides, agreed, subject to the approval of Parliament, to advance to Auckland, on the security of one half of the land revenue to be impounded for the purpose, £40,000 in sums of £6OOO every three months. The Government propose to ask Parliament to carry out these arrangements. We do not propose to ask for Auckland any further loan beyond the the power to devote some part of the immigration funds to objects directed to the promotion of the settlement of immigrants. Taranaki with its splendid lands offers a field for the location of immigrants second to none in the colony, and we shall ask for power to advance money to aid so essential a work. Similarly we propose to devote some funds to Westland and to Nelson. In respect to these four provinces, it is to be remembered that they have not as yet enjoyed so much of the direct benefit from the expenditure on immigration as they might be supposed to have the right to claim ; still for money expended on works we propose conditions for repayment, and may add also that whilst we shall require the approval of the Provincial Governments to any work undertaken, we propose that the works shall be carried out under the control or with the approval of the Public Works Department. What I have said of these other provinces iu rcsnect to immigration applies equally to Marlborough. We shall propose for works in connection with the location of immigrants, advances extending over two years, besides a loan of £4OOO to bridge the Clarence river. In regard to Wellington, hon members will no doubt have observed from the correspondence that the Government during the recess endeavored to induce the Provincial Government to reduce the amount of borrowed money they desired. We agreed to submit for the approval of the Assembly a proposition to allow Wellington to obtain an advance of £66,000 on 80,000 acres of land to be opened to the free selection 0 f small settlers. We shall ask that this plan be carried out. I may also mention incidentally that we propose to ask authority to construct proper Government Buildings in Wellington. Nelson’s case is the most difficult to deal with. That province has long lagged behind iu the race that other provinces have run. It requires useful works, of which it is singularly destitute, and we propose to lend to it on specific security £50,000 for works, which the Public Works Department approve. From Otago, also, the cry for borrowed money has come. We cannot see our way to at present sanction the sum that province asks for, unless by way of purchase-

of the Winton and Bluff lines. If the Provincial Government are willing, we will be prepared to propose to the Assembly to purchase that railway at a valuation, the payment to be made in four equal instalments : on the Ist February next and the Ist Feb-

ruary of the three following'years, the money to be devoted to the construction of branch railways. Otherwise, in respect to Otago, and in respect to Canterbury, and Hawke’s Bay, I have only to say, we propose to continue their trunk railways, and to aid them in locating the immigrants they so wonderfully absorb.” The Government proposed not to undertake any further goldfields works until Borne of those already begun had been completed. They proposed to appropriate an additional £60,000 for roads in the North Island, and to continue to the same plan as formally, by allocating to the Middle Island provinces a like amount. Out of the sums that would thus become payable to Canterbury and Westland, it was proposed to put the road between Christchurch and Hokitika into good order. As to the provinces, Mr Vogel said “ the case of the provinces is not to be dealt with by merely • exceptional advances for public works. There are three provinces which labor under the great disadvantage of contributing largely to the colonial revenue, for whilst they make the contributions they enjoy out out of their own revenues local expenditure. But the case of some provinces is simply constant contribution, a constant disheartening tendency to the result so familiarly explained by the slaughter of the bird which lays the golden egg. As a mere matter of policy, if it is wise in the midst of the immense increase of the colonial revenue, to specially remember some of the provinces which contribute it, and which are at present at great disadvantage as compared with other provinces, it is not wise to let parts of the colony languish under a sense of wrong ; to allow them to feel they are still becalmed, whilst the favoring breeze removes from their sight the vessels so generally becalmed with them. The condition of the three provinces of Auckland, Westland, and Nelson, as compared with the other provinces, is lamentable, and requires from the surplus of the consolidated revenues the attention of the Legislature. Auckland’s case is by far the worst; It will take that provincesome years to work itself round and to enjoy the future, which I firmly believe is still before it. Westland deserves great sympathy. Weighted with a great public debt, Jits Government, eagerly anxious to develop it, find themselves hampered in every direction. Westland has proved a mine of wealth to the colony, and it is folly to desert it. The west coast of Nelson is somewhat similarly placed. Nelson will, however, now have the means, as it appears its rulers have the inclination to use those means, to become a prosperous province. These considerations impel us to recommend that, out of the year’s surplus, a special allowance, in addition to that already provided by the scale of capitation allowances, be made to Auckland, Westland, and Nelson, at the rate of £25,000 to the first, £IO,OOO to the second, and £SOOO to the third. When lion members study the whole of the circumstances, they will not I think grudge the proposed aid.” Passing on to the expenditure for the curxent year 1874-5, he said that the essential principle of this budget was different from that of any previous one, its great object Being to prevent the Government recruiting the revenues by resort to borrowed moneys. In fact the present budget had for its object to relieve loans at the expense of the consolidated revenue. He proposed this year to take over and to charge upon the consolidated revenue all the cost of interest inclusive of interest upon works in course of construction, for which other provision had been made. He proposed, also, to bear on the consolidated revenue half of the Defence expenditure, and half the amount to be paid as subsidies to Road Boards, Further, he proposed to pay off an additional £IOO,OOO of Treasury bills.

Taking into consideration the number of officers of the Civil Service who were inclined to leave the service on account of opportunities to benefit themselves, and the hardship to which they were subjected through the increased cost of living, the Government had decided to recommend as a matter of expediency, no less than of justice, that a special allowance should this year be made of 10 per cent to all officers whose salaries did not exceed £l6O a year ; of per cent to all officers whose salaries exceeded £l5O, but did not exceed £3OO ; and of 5 per cent to all those whose salaries exceeded £3OO, but did not exceed £SOO. To do this would absorb £15,000 of the surplus. Adding these various items to the amount of the capitation grant, the

special allowances to the provinces, as well as the ordinary expenditure, permanent charges, the total expenditure for the current year would be £1,630,000. This would include £271,000 to be devoted to the reduction of Treasury bills current, and to the payment ©f amounts which might, under existing authorities have been charged on loans ; thus justifying the statement he had made that the main feature of the Budget was to relieve loans at the expense of the consolidated revenue, He would explain, when he made his immigration statement, the further votes that would be required for immigration and for railway purposes. His colleague, the Minister for Public Works, would, in a day or two explain the various circumstances respecting the construction of the main trunk lines. He must, however, state that

what he meant to include when he spoke of main trunk lines, which the colony would

be justified in accepting as a colonial line, ■were those lines which had been already authorised, together with such other lines as would complete existing gaps between Kaipara and Auckland, New Plymouth, Napier, and Wellington, as well as those necessary to complete thorough communica* tiou between Picton, Nelson, Hokitika, North Canterbury, and the West Coast. The total revenue for the year estimated with moderation was £1,496,000. Adding to this the surplusjwith which the year was commenced, there would be a total of 1,704,000, and deducting the total expenditure, there would be a surplus of £66,000. It must be remembered, however, that that surplus was liable to be largely trenched upon by supple--mentary estimates. In conclusion, Mr Vogel urged that while the country was confidently pursuing its policy of progress, they should wisely husband its •strength and not have larger recourse to borrowing than was absolutely necessary for -carrying out the policy which the House and -the people had adopted, Progress was reported, and leave obtained -to sit again, and the House was adjourned at half-past nine.