PARLIAMENTARY NEWS

Globe, Volume XXII, Issue 1961, 7 June 1880, Page 3

PARLIAMENTARY NEWS

WELLINGTON, Jtne 5,

A long Cabinet meeting was held to-day at the Premier’s residence. While it was proceeding notice was sent to the civil servants, who were just about to leave the offices, that they must all remain during the afternoon. This caused considerable surprise, and much talk inside and in the lobbies, it being supposed to indicate some important change of plans on the part of the Government. Subsequently, however, it transpired Cabinet had decided that it was adyisab to recast the shape of the estimates in various respects, and it was therefore necessary to have all the officials at hand to make the necessary alterations in view of the approaching financial statement. It is now definitely fixed that, failing any unforeseen contingency, the Colonial Treasurer will deliver his financial statement at 7.30 on Tuesday evening next. I am also in a position to state that he will take that opportunity of announcing the intentions of the Government regarding the modifications of the Property Tax. There is a general j impression abroad that this will take the form of exempting personal effects and furniture, but not other personal property, at the same time amending the machinery of collection, X believe that the latter certainly will be done, but as to the former I believe I am now justified in saying that the Government will not consent to it unless on a distinct condition that the revenue thus sacrificed should be replaced by extending the operation of the tax in other directions, that is either by reducing the exemption from £SOO to £3OO, or even £2OO. Every penny of the tax, as it now stands, is absolutely needed, and the Government must have the money in order to make both ends meet. If the House will not support them in this policy of placing the finances on a sound footing, Ministers are quite willing to resign, but they will not abandon this cardinal feature of their financial policy, the restoration of soundness and solvency. The exemption of personal effects from the property tax would mean a loss of £40,000, so unless the House consents to restore that by an extension in other directions, the Government will resist to the last and, if necessary, stake their existence on that point. But they are quite willing to meet the views of the House and country so far as possible, provided that the soundness of their finance will not be affected thereby, but this is a vital point of policy upon which they are as firm as a ro«k, and from what I can see members are likely to support them in it, despite some little harmless grumbling. Of course it is early to judge, as all the members have not yet arrived, and no combined Opposition action is yet inaugurated, but this appears to me to be the present probability. Another point on which I am assured that Ministers are very firm, is not to have the Education Act altered, especially in the direction of school fees, to which several Ministers are resolutely opposed. Indeed, as I telegraphed some weeks ago, any wavering on this point would break up the Ministry, free education being a sine qua non with some of its members. I believe it is equally certain that no limitation of the present educational scheme and programme will be conceded. The chief topic in the lobbies to-day has been the debate in the Legislative Council last evening on Mr Waterhouse’s motion regarding the inscription of the loan. Mr Waterhouse alleged that by the conversion of the five million 5 per cent, loan into six million 4 per cents, the colony would lose £1,600,000 in compound interest, and one million more in principal, making a total loss to the colony on the transaction of £2,600,000 when the time arrived for the repayment of the loan. Ho also contended that the real price was only equivalent to £7B for every £IOO, while New douth Wales at the same time got £9B for similar stock. 001. Whitmore expressed the opinion that the price was equivalent to £B3, and might have been £9O, hinting at doubts as to whether Sir J. Vogel had exercised the power of conversion on his own motion, or that of the Government, observing that if the latter the Government were utterly unfit for office, and if of himself, then he was equally so. Sir E. D. Bell considered Sir J. Vogel’s conduct in the matter unexeusable, as from his experience he should have been conversant with the circumstances of the colony, and, moreover, he should not have had a pecuniary interest in the conversion. He further declared that Sir J. Vogel was to receive one-eighth (2s 6i) per cent, commission for the conversion, and denounced the arrangement as grossly improper. lam obliged to recapitulate all this, to make intelligible my explanation, which is this—lst, the net price of the five million loan, as converted from 5 to 4 per cent, stock, was just about £80; 2nd, the immediate floating of the loan was ' a matter of most urgent necessity, owing to the extent to which it had been anticipated by the Grey Government, and it was therefore necessary to offer any terms to secure the money. The Grey Government were providing even for interest by telegrams to agents to pay while the latter could not obtain any more advances on any terms. 3rd. If the floating of the loan had been delayed, even for a few days, the colony must have suspended payment at once, and it is now clearly proved that if it had only been possible to raise three millions, which at first was thought all that was practicable, payments must have been stopped before now. It was, therefore, essential to get the money, no matter at what price, and to offer the terms most likely to attain this end, hence the extra two millions. If correct that this is the coat, it will be another item to the expense of two years’Greyite rule. 4th. As to Sir J. Vogel’s commission, it was loudly asserted in the lobbies to-day that he was to get one-eighth per cent., and that there was a distinct agreement to this effect on the part of the Government, consequently several members and “specials ” of financial or arithmetical turn of mind calculated how much Sir J. Vogel would make by the transaction. The first shot was £70,000, which by degrees dwindled to £30,000, and, lastly, to £6250. It did not occur to any of these gentlemen apparently to ascertain if their premises were correct, but it struck me as worth while to ask, when I speedily ascertained that, although it was quite true that Sir J. Vogel had claimed commission, the amount he would actually receive would be nil, the Government having declined to recognise his claim, on the ground that the matter came within the scope of his duties as Agent-General. I believe it is understood that in the case of future loans he would receive one-twelfth per cent,, but in no past loans is any commission to be paid him for carrying out the process of conversion. There is such a widespread misapprehension on these important points that I deem it advisable to send this explanation. The Hospital and Charitable Aid Bill was generally very well received in the House last evening, and criticisms wore mostly highly favorable regarding the principles, while in certain details there is much difference of opinion. It will doubtless undergo considerable modification in committee. There is much diversity of view as to the Licensing Bill, prevalent ideas seemingly being that it is exceedingly stringent, and it is thought that vigorous attempts will be made in committee to tone down some of the hardest provisions, while such attempts will be strenuously resisted by Sir W. Fox, Mr Saunders, and other temperance advocates. A story is afloat to the effect that the Civil Service Commission, in their intense zeal for economy, have chartered two prisoners in Wellington gaol, whose handwriting is exceptionally good, to make a fair copy of all evidence taken, in order to save the country the expense of so many fonrpences per folio. I don’t vouch for the story which, however, reaches me on apparently good authority. The Government have received a somewhat startling intimation by telegram that 500 Canadian emigrants are awaiting Government orders to start for New Zealand. The telegram came from Dr. Potts, who has been calling himself agent in Canada for the New Zealand Government, and inviting applications from intending immigrants on the strength of the fact that the advisabiliiy of appointing him had once been discussed. Notice of this fact appearing in some published official correspondence, Mr Potts received hosts of applicants, and selected 500 as the most suitable. The Government, however, promptly telegraphed that they had never authorised him to make any such arrangements, and certainly could not take the immigrants, as there was no opening for them at the present time. The new Fencing and Branding and Impounding Bills introduced by Mr Whitaker in the Legislative Council, consolidates and rei peals all existing Acts and Provincial Ordinances on the subject. They are lengthy and i somewhat elaborate Bills. It is expected that • they will elicit some amount of discussion on ■ the part of pastoral and agricultural representatives.