PARLIAMENT.

Manawatu Standard, Volume X, Issue 20, 22 June 1885, Page 3

PARLIAMENT.

HOUSE OF REPRESENTATIVES. . FINANCIAL STATEMENT. (TqNITISD PRESS ASSOCIATION.) Wellington, Saturday. - PUBLIC WORKS EXPENDITURE. Without /^trespassing on the details whioh ivy colleague the Minister for Public Works wilP set before you, I may say that we ostimate there will bean actual expenditure of about this, year, which will include about ±170,000 on . harbor defences. It will be seen, then, that after accounting for advances, there will be but a small sum left for expenditure after the end of March next. Out of the North Island Railway loan there will be some amount repayable for works defrayed out of other loans. As the Committee are . aware, we intend proceeding with that railway as fast as possible, but the actual expenditure up to the end of March is noi likely much to •speed £100;000. The Defence experidiiiure out of present loans will have co.be repaid. It be will apparent therefore, that we have provision for little beyond March, and scarcely enough to caify; us on until the House meets m ordinary course next year, With .-regSra% the general question' of l borrowing,, I , must, say, a f^W; words. J When the 1 " Minister : : for Public Works j broiight down his plans m 1882 for the :-'thr£e-ixutlion loan, he statod that, it he were to stipulate for votes to allth« 'Wdrka^he r propos^^:' -might have to ask for ton /millions.; •■■ More or lessj we inherit these" 6bh'gafi^ii^ I "ii)gether with;othefs which have grown-up since ; _ jujdj thbvplain" meaning\isy;;-'tb;at < j:; ;^£khall continue yeav : .after, year." the'cbnstrac-tion-bf great; ,'worka to such' extent as Parliament thinks .advisable. . ,tt Js • necessary to .look : the. position fairly m. the face,- and to draw, a line ;^tstO ; . the purposes; for;.' ;which : iu^iiey be borrowed?"' J "Whcn'' we propds&d ' tb,o ; n^illion and a-half,;lbah last;s6ssipiv'we drew attention to tne' enormous propbrtio.ri.'6f j.t that would be absorbed by z'ba'ds and' Tmdges. One of the objects of our policy which I have disclosed thjsl evening Js to set a limit to borrowing' for indiscrimi-r natd purposes. As. soon" as >we <san end t engagements at present contracted, hope there will be little money bori"rt)wed by the Colony for roads and I Bridges. But we recognise the great objects these works fulfil, and We propose a sufficient finance . to lbqal bodies carry them cgit; ■ ; As rerffirds railways-, besides the main trunk lines; there are' hundreds of miles; for which'a; cry, comes up. from different parts pf the cbu.htryV r We propose that m future, there shall ' be three classes of railways ; forest" " ; railways; the cost of which the. . State forests will defray; district rail-ways, for winch the . jpcaj .;,, bodies: \ recommending them shall defray one-half of the yearly interest, m excess of receipts : and main trunk lines, for which the Colony shall, be wholly liable. "' FUTUKE BORROWING. . In his Statemens last year the Minister for Public Works laid down certain principles which should guide the House m relation to future borrow ing. The railwayshave not yielded the revenue anticipated last year.: The Government deemed it expedient to make some reductions m rates, believing that the tariff should hot he framed solely with the view of exacting the uttriost possible receipts. There were other causes .which led to a less revenue: These will be explained m the Public Works. Statement. But it may be said, this is a good time to. borrow. The market has shown that New Zealand loans are welcome. Why not. take advantage of this disposition, and borrow largely? I emphatically urge that no such view should prevail. - We do. not -, borrow to suit the market. . Just as; I would urge that, if we- really wanted money, we should borrow although -the market were ; not disposeel to take our loaii . on favorable terms,: so I urge, with equal' strength, we should" not be enticed into borrowing because the market is favorable.. It is pleasant to get a high price for our loans, but we must not attach too . much importance to securing a little extra from the sale of a loan. A year's interest soon disposes of that if the money is not wanted. lam sure it is better to put on I one side the market feeling, and to judge ourselves, on the broad grounds of public policy, what are our wants, and to what extent we shall supply them. I take it the House means to carry out the work of defence, and that during this and the two succeeding years not less ! than £300,000 will be required for. the purpose. I presume that we shall hot [ permanently end assistance to nominated immigrants, and that, though we shall be less munificent with respect to expenditure on roads and bridges out of borrowed money tban we. have been lately, we must redeem, engagements and provide a portion of the subsidy proposed. . We require to provide for the purchase of Native land, and we miiy conclude, I suppose, that there is no intention to dis continue,, the 'construction of railways already. c^mme^^ and the consideration oh their/ jherita from time to time of other railways, subject to the conditions I haye. suggested as to main and district i line.. '. "". ' "■ ' ' ■ • • : ; ■'•'■ •■■:■ It may bo urged that all theso objects would justify our asking for a considerable loan, to be expended from time" to to time as authorised. But we are of opinion that it will be better to confine ourselves within narrow limits, and to test the effect of the readjustment of taxation and of the subsidies to local bodies. We shall therefore ask for authority for only one million for 1886-87, . of which £250,000 will be for. defence for that and the previous year, .£50,000 for immigration, £200.000 for. roads, bridges, and buildings, £100,000 for purchase, of Nativ* lands, and £400,000 for railways. It may be as well, whilst I am on the subject of borrowing, that I should say Government :have not adopted the idea I shadowed forth during the reosss of borrowing money to lend m small sums to farmers on freehold security. When I spoke on the subject I did so with re- < servations which I expressly made. On further examination, I found 1 - that the English Government had ceased to make , direct' advances for land improvements, . and had substituted for it a system of .authorising the issue of mortgage debentures,, for which the State was not liable. This system works excellently m Great Britain, far better than the old one of direct advances, whilst the State' •has no liability. A Bill will be submitted to the House for giving effect to this English system. It will, I think, go some way towards satisfying the demand for cheap money for the securities of local bodies and for land improvements.