The Globe. TUESDAY JULY 16, 1878.

Globe, Volume XX, Issue 1378, 16 July 1878, Page 2

The Globe. TUESDAY JULY 16, 1878.

It may ho taken for granted without impropriety that the statements made hy the New Zealander touching the surplus land fund of Canterbury embody the views of Ministers on the subject. The facts, as far as our contemporary can understand them, are as follows : The Government undertake, at the request of the Superintendent of Canterbury, to provide funds to pay to the Dank a sum of £IOO,QUO advanced on the security of debentures intended to be issued under the Lyttelton Harbour Board Loan Act, 1872. It was never understood that the colony was to be liable for the debt, and if the debentures had been issued the interest and sinking fund became a charge on local revenue. This would seem only reasonable. What rigat had the harbour of Lyttelton any more than that of Dunedin to s ddle (ho colony with the cost of its works. Sir J. Vogel, however, in 1876, in order to bar any claim whichymight arise out of complex negotiations distinctly conveyed in writing the understanding as far as Government are concerned, that the colony should not be subject to any liability in the matter whatever. The Bank received the money, and {iq it had beoa unprovided for by the Leg«’

laluro, the Government had no alternative but to deduct it from the surplus land revenue of Canterbury. It has been observed that an arrangement was made with Mr Rollcaton that the amount was to become a provincial liability, and that this was a great modifier of that patriot, in the session of 1870. However this may be, the money was not included among the provincial liabilities, and as it was not. voted, it was only by inference that the debt could at all be assumed as a colonial liability, but it will probably be found that the Government have both law and equity on their side. The only other amount in dispute is the sum of £124,000, the estimated amount of arrears of survey in the provincial district of Canterbury. It must bo remembered that these arrears are on the accoun* of land, the pro needs of which have gone into the provincial chest, and been appropriated and used for provincial purposes, only this sum was unprovided fo r among the liabilities of the province, and was recoverable only from the land fund. There are two points raised in the above extract. First, there is that o£ the right of the Government to deduct the amount of the Lyttelton Harbour Board loan, authorised to bo raised under the Act of 1872, and there is the question of deducting the sum of £124,000 for arrears of surveys. As regards the first point, it will ho observed that the Government paper assorts that it tens never understood that the colony was liable for that debt. This statement is utterly devoid of truth. Not only was it understood that the loan was to bo a colonial liability, and taken over when abolition came into force, hut a special clause was inserted in the Financial Arrangements Act, 1876, which ran as follows : “ Notwithstanding anything contained in the Lyttelton Harbour Works Loan Act, 1872, when any moneys shall be borrowed and raised under the said Act, the same shall ho and he deemed to ho a portion of the permanent debt of the district of Canterbury within the meaning of the sixth section hereof, and shall cease to ho a charge on tho duos rates and charges specified in the 18th section of tho said Act.” It will thus bo seen that it was distinctly enacted that when tho £IOO,OOO, authorised by tho Act of 1872, was raised, it was to become a provincial liability. When tho Abolition Act came into force the powers, &c., of the Superintendent became vested in the Governor. Although the Ministry did not find it convenient to place the loan on tho market, they gave the money to repay the hank the amount advanced on the security of the debentures. What is more, the appropriations for tho year ended June 30th, last, contain the following item, under the heading of Permanent Charges : —“ Lyttelton Harbour Works Loan Act, 1872 Inlerest on £IOO,OOO, at 6 per cent., £6000.” The Appropriation Act, in which the above item is included, was carried through the House by the present Government. There is, therefore, not the slightest doubt whatever that it was thoroughly understood that the sum under discussion was to bo a provincial liability. It is true that it is not included in tho Loan Act of last session. If the omission was intentional, as it most likely was, this is but another instance of tho deception and disgraceful double dealing which is so marked a characteristic of the Grey Government. The attempt to deduct £124,000 to provide for tho arrears of surveys is equally illegal. The Financial Arraugemouts Act is explicit on this point. It authorises the deduction of certain sums from the land fund of each district. Those items are so deducted in the accounts of tho Colonial Treasurer, published in January last, and after being subtracted there is still a sum of £315,000 available for distribution in Canterbury. This claim to retain £124,000 more is an outrageous attempt to plunder this district. But we have to thank Mr. Montgomery, Mr. Evans Brown, and Mr. Fisher for what is happening. Had they had a truer conception of their duty to their constituents, we might have been saved the sight of our local bodies having to appeal to the law to compel the Go. vernmeut of tho country to give up money which was given to them in the belief that it would ho honestly dealt with. Had tho gentlemen we have named been actuated by the high-minded motives of the other Canterbury members, the present Government would never have been in power, and our land fund would have been saved from the hands of “ highway robbers” now ou the Treasury benches.