GENERAL ASSEMBLY.

Kumara Times, Issue 1154, 10 June 1880, Page 3

GENERAL ASSEMBLY.

House of representatives. tutu Financial STaTement. [couthtubd]. Wellington, June 8. Major Atkinson continued—Parliament would be asked during the present session to trtakp. provision for extending to the - 31st December} 1882, .the currency of certain. Trertsniy lulls amounting to £390,00(3, and to grant authority for exchanging thom to debentures With currency for three ye ns. With regard to the Xs.OOO.ooO'loan it had been necessary to use up to the present time the sum of £3,060,000. The Hon. Treasurer then went on to

state'the circumstances of'the Government resolving to apply for three millions in the first instance The agents in London were Compelled to‘ ; offer the d per cent.load at with the (Option of exchange to four per cent , at with a; guarantee that .New,, Zealand .would not enter the money market for three yeaas. Major Atkinsdp then, went at length into the financial position of the Colony, showing that oh the 31st March last the siun ; of ■£1,920,410 ‘ was available’ for ‘public . works and other requirements. After ■deducting various amounts required, the only funds now- actually r at, command Would bfe represented- by . £873,000 in Treasury and deficiency bills, so l much ipr the past, and he. would now submit for the approval of the Committee the scheme of local finances and proposals for ordinary sources of'"Current year. It would be within the recollection of hon. members that hfe said last session that the “ Government Would this year recommend the discontinuance of subsidies.” This warning was given bCcaUsC it was thengeneral ly admitted that the system of subsidies was not working satisfactorily, that without further taxation the consolidated Hind could no longer bear this expense owing to the. annual charge on our public debt having become so large' that the local bodies themselves might, have reasonable notice before any change was made. Sir, great as was the need of the Treasury lust session and great as they at the present time the Government hold firmly to the opinion entertained at the time,, that the question of local finance affecting as it does the vital interest of the whole country, is one of paramount importance which must not be dealt with piecemeal but as a whole. To propose the abolition of grants in aid to local bodies without substituting a Workable sohoqe in their place would be trifling with the subject in a manner which 1 venture to think Would hot meet with the approval of Parliament. Gar aim is one duty being first to place our general finance on a sound footing; the second to put oilr local bodies in such a position as will enable theta to.do.tbe work which rightly devolves upon them, and which must be done by them if the country , is to be prosperously settled. • 1 do not think it convenient to trouble the committee to-night with many reasons for discontinuing the subsidies. That question can be better discussed when considering the Bills which will be introduced to give effect to the proposals. 1 may, however, point but to bon. members that the system of subsidies has operated unequally, It waft ' largely helped rich and populous districts while giving little assistance to those which are poor and thinly populated.. It, must also be remembered that they were proposed as part of the scheme to which full effect has never been given for the land fund which has been generalised instead of localised, in provincial districts; and the expenditure upon public works, instead of being limited and confined to arterial undertakings has been lavished and extended tjb works of all descriptions. The magnitude of this expenditure will be evident when’l say that we'have increased our -debt for public- Works within the last three years and a-half (the time during which subsidies have been paid) by £9;000,000 which' remains an annual charge of £450,000. The circumstances of the Colony having greatly changed since the system of subsidies-;was introduced, and it .being evident that the Treasury cannot continue to pay them without the imposition of fresh taxation, the case for the reconsideration of the whole question is complete, for it Is certain that-Par-liament will never consent to levy additional taxation for such a purpose without full inquiry and careful deliberation. In the scheme Mr Seymour, which I am about to submit to the Committee, I must ask' hon. members to bear in mind that, I take it for granted first, that sections 6 and 6 of the Financial Arrangements Act, 1876, Amendment 187 t, which authorise the subsidies and grants of 30 per cent, of the land fund to to the Counties, are-to be repealed; and second, that the proceeds from laud sales are not to be used for ordinary purposes of Government. The ground being thus cleared,, I will now endeavor to describe in sufficient detail the scheme we purpose to give effect to our proposal. We shall have to ask authority to introduce two Bills—first will be an Amending Bill, j It will remove the present restriction upon rating—that is to say it will permit local bodies having a right to rate, • to levy rates to any amount they consider necessary for local requirements not exceeding two shillings in the pound; or beyond that amount if passed as a special rate. It will authorise boroughs and other local bodies to borrow at any rate of interest rate- , payers may choose to give any amount

subject "only to tbe That the principal and interest of; alb the. new loans shall be made payable in New Zealand. 2 That any local>’;body desiring to raise a loam, shall 'oefiore doing so, levy a special rate sufficient to cover the Interest and sinking fupd upon the money proposed to M boV rbWed—such rate to" be continuous' until the debt has been repaid., The Bill will also require that any local body which has already .fyprrowCd upop ifs general revenue, shall again before entering the money market. devy a special rate to coyer the interest and ■ sinking fund upon the existing loan, or loans ; as Well ds prSviding by special rate for the new loan. These - and other powers giving by the Bill are apparently very large, atid will I fear be considered dangerous by some, but, sir! would point out that if-.the, local bodies are to' be refelly useful ,they must be made independent and respond sible. The one precaution to be -taken is to See that the ratepayers Spend their own money, and not the money-, of other people, fend this will be carefully provided for in the Bill,