PARLIAMENT.

Oamaru Mail, Volume IV, Issue 1089, 15 October 1879, Page 2

PARLIAMENT.

Wellinoton, October 14. In the House of Represe;i:atives to-day, Mr. Shrimski gave notice that he would ask the Government to place L 500,000 on the estimates for Otago road, and bridges. The Government promised to introduce a Drainage Bill this session. Mr. Hall made the statement promised on Friday. He read a letter written by Messrs. Ormond, Beotliam, and others, contradicting a statement as to promises made to Mr. Tomoana, inducing him to join the Government, the writers set forth that they were present at the interviews which took place between Messrs. Hall and Tomoana on the occasion referred to. He proceeded to say that the Bills promisod by tho Government on Friday were in the hands of the AttorneyGeneral, who was busily engaged preparingthem,audthat they would be introduced in the course of this week. A Financial Statement by the Treasurer would be made that night, aud a full statement in reference to native affairs not later than Thursday or Friday. The Maori Ministers had not been made as useful as they might be, and a Bill to define their duties more fully would be introduced. A large expenditure was going on on the West Coaat, which, under the circumstances, was thought justifiable. The settlers there had shown great forbearance in the circumstances in which they were placed, and the Governmsnt fully recognised the fact, and would take steps to put an end to these troubles. These difficulties had, it was alleged, arisen frprn unfulfilled promises, and ( .a Royal Commission would be appointed to enquire into the.Jacts of the case. He hoped, at an early to succeed in putting an end to tho present state of things without risk to life or property. The present views with respect to the alienation of Maori land were unsatisfactory, and a promise made by the late Native Minister to make a change had not been kept. A proposal had been made to sell the lands on behalf of the natives, and the Government looked upon it favorably, and steps in that direction would be taken during the session, They propose to distribute the Government advertisements amongst the papers, independently altogether of their political opinions, and to reduce the expense of the Government steamers by using only one of them ftt a time, so soon as native troubles would admit,

Mr. Hall moved for leave to introduce the Electoral Bill which provided for two qualifications. (1.) Twelve months residence in the Colony, and six months in a district. (2,) Freehold of the value of L 25. Mr. Macandrew moved as an amandment that while the House is anxious to pass the Bill, it declines doing so until it has been shown that the Government possess the confidence of the House. The Speaker ruled that the amendment could not be put, and Mr, Mscandrew said they would oppose every motion until the question of j fidence was determined. On the application of Mr. Pitt, thej Speaker ruled that if the motion for leave j to introduce the Bill was negatived, it

could not be re-introduced that session. After discussion, the debate was adjourned until the evening sitting, on the motion of Mr. Sheehan. The House adjourned at i o'clock. At the evening sitting,

Major Atkinson, in moving for leave to introduce the Public Revenue" Act Amendment Act, said the circumstances were of an exceptional character. He had to disregard the usual rule that the Statement of the year should be a carefully prepared i document, and submitted to the Government. The finance had not been dealt ' with at all for 15 months, and Parliament ' ,vas in the dark for that time. He would give a broad outline of finance, so as to 5 enable honorable members to turn over in their minds what was best to be done. In 1879 the Treasurer estimated that he > would begin the year with a surplus of 5 L120,4G8. The actual amount realised was L11G.844. The expenditure passed was L 4.210,000, but the actual expendi--7 ture as placed before the last session by i the then Treasurer, Sir G. Grey, was L3,G52,045. The apparent saving of L 358,000 was reducible by L 348,219 of liabilities. The payments for and made within the year counted to a little over L 4,000,000. The revenue for 1878-9 was estimated at L 4,945.537, the actual sum : realised being L 3,751,598, leaving a deficiency of L 233,939, at the end of the year they had begun with a deficit of year. They began the year with I L 110,900 to their ci-euit, and ended after allowing for assets and providing for liabilities with a deficit of L 131,824. He called attention to the following items of expenditure, to show that they were not , exercising any economy in the public 1 service. They had not retrenched in any one way, and it would be seen that some very decided step would have to be taken to place finance on its proper footing. In law, justice, customs, &c., for the year 1877-8, the sum voted amounted to LSGG,OOO,; that was an expenditure of LIO,OOO more than was voted. In 1878-9 the same department got a vote of L 903,000, whereas the actual expenditure was L 956,000. The Native Department was next referred to. In IS7G-7 the cost ; was L 34,000 ; in 1577-8, L 43,000 ; and in 1878-9 it amounted to L 58,000. Then ; the salaries last year were LI9,OQQ. They were about the same for 1877-8, but in IS7B-9 only L 10,331 was voted for salaries. ' The contingent expenses rose from 14993 ' in IS7G-7 to L5G67 in the next year, while J for 18,78-9 they were L1G,?41. The expenditure for 187S-9, as estimated by the late ' Government, was L 3,973,425, but that did not include L 140.000 for contingent defence proposed to be charged to the loan, nor did it include L122,00Q0f local revenue. The expenditure as stated included ' L 1,335,373 for interest and sinking fund, LG3,540 for land, and L 259,527 the j amount of subsidies. The estimate of ' revenue by the late Government was L 5,444.000, made up from taxation, LI.380,000; service rendered, L 1,362,000; from land, L 500,000 ; but deducting this revenue from the stated expenditure ihere was a deficit to be met, hut in fact he feared, with the experience which this i Government had had of the receipts for : the ih'sst quarter, that the Estimates made by the late Government for the current year's revenue would not be realised. • Revising the Estimates as carefully as he had been able, he feared the receipts ! would not exceed L3 ; 193,0Q0, made up of taxation, L 1,512,300 ; on aceount of services, L 1,301,6.0.0; and ' from land, L 350.000. This would increase the deficit already stated by L 120,000, and would leave a total deficit to be provided ' for this year of L 911,000, It was not his ■ business at present to suggest a remedy, • or to give reasons why lie anticipated such results, as the Hoi;<ie would only i expect a broad scat iment of results. ■ When lie took possession of the Treusury tin; public accounts stood thus The receipts during the quarter- had not come up to the payments made by the sum of Tho late Government had : isiuod L4Q0,000 worth of Deficiency Bills, • and used the whole of the proceeds. No ■ provision had been made for paying the ■ subsidies to local bodies now due, or to i meet other payments for which it was ab- ' solutely necessary for- them to make provision. For these they proposed to take ! power to issue a further L 200,000 worth of Deficiency Bills in order to enable them to carry on the necessary services of the Colony up to the month of October or November, and 1 by that time he hoped the House would 1 have determined as to how the deficiency ; was to be made up. It would be improper tor the Government to do more than submit a mere temporary remedy so as to enable the House to take time to determine as to how the matter was to be finally disposed of. That was his reason for asking the House to pass the Bill. Regarding tho position of the public works account, they began the year with a credit to the Department of L 507,000 nominally, but of this L 300,000 was due for outstanding debts ; in reality it was no better than so much money paid away, so that they only actually began the year with L 207.000 to the good. The expenditure for last quarter was L 712,000, so that the late Government had actually spent to the 30th September the last half million of the L 5,000,000. Then again he found, upon enquiry, that their engagements entered into up to the 30th December next amounted to L 733,000 more, and further engagements on which they would have to pay, on the 30th June next, L!'2l,BlS more. In other words, up to the SCcii June next, the public works they were already committed to, without any new ouch being undertaken, would amount to L 2,160,000 out of the L 5,000,000. lie was much startled when he found the amount so very large. He had taken pains to see that it w r as correct, and he found that it was not possible to reduce the amount below what he had stated. Included in this L 2,160,000 was the sum of L 200,000 for the purchase of native lands. Of that, L 36,000 had been spent already, and there were further engagements up to the end of this year to spend L 84,000. They had a further liability upon these lands, which apparently they had engaged to fulfil, amounting to L957,0,QQ. In round figures a million more had to be provided for to complete the purchase of these lands. They also had oontracts for public works upon 30th June amounting to L 1,281,815 more, so that one million would be required by the end of next June. What he desired to point out to the House was that they had actually spent up to the end of September a quarter of a million, which, together with their other engagements, would amount to a total aura of L 2,000,000, and that before they knew whether the loan could be raised, not the slightest intimation having yet been received on the subject. He deprecated in strong terms the impropriety of pledging the credit of the Colony in that way. He did not know how the loan would go off; fortunately the credit of thp Colony was good; still that was no excuse for the course pursued in the matter by the late Government. Such then was the financial position at the pre.r sent time. He wished he had to, tell had been a little more cheerfuL It , was clearly, however, the bounden duty of hon. members to face the whole question of colonial finance at once. The position was undoubtedly a grave one, and would demand immediate attention, and it seemed to him that it was absolutely necessary that at the present time not only a capable Government, but likewise one sufficiently strong "to legislate for the interests of the Colony, and not merely for those of a party, should take charge, ■ It was their bounden duty to dispense with party tactics, and turn their individual attention immediately to these serious difficulties, and. in some way devise a scheme to the finances of

the Colony placed on a sounder and better position than it stood in at present. Sir George Grey said the statement that a financial statement had not been made for the last fifteen months was not quite correct. The accounts had been published quarterly, and anyone could have made up a statement similar to the one given a 5 well as the Treasurer. It was not .the fault of the late Government that a financial statement was not made last session. The unconstitutional provision made by the Governor in granting the dissolution, no contested motion being brought forward, prevented them from going into the financial position of the Colony. They had a financial statement ready this session, and but for what had taken place it would have been down before this time. Had they been allowed in July last to conduct the business as they ought, provision would have been made for the deficency, and funds would have been coming in from taxation they intended to have imposed, and that upon men well able to bear it. The course proposed by the Government was a wise one, and one which they would have carried out had they been left in office. If they carried out the course of taxation the late Government proposed, they would be entitled to their support ; but, if not, then they would not get that.

The Hon. Mr. Hall said no doubt accounts had been gazetted, but very few men in the Colony could arrive at any comprehension of the true bearing of those accounts. It was true that the proposed measure of taxation taken by the Government from its predecessors might provide L 200,000 towards the deficit of the L 900,000, but no provision was made for the balance. Mr. Ballance threw the blame on the Opposition last session for keeping the Colony in the dark as to their financial condition. They used their majority at the very commencement last stijion to intercept any consideration of financial matters by bringing down a vote of want of confidence at the very commencement of the session. One of the legacies of the Atkinson Government to its successors was having to draw against a loa . before it was raised, and that had been a common practice with previous Governments. He defended the late Government from the charges of departmental extravagances. He contended that the real deficit last year was only LGO,OOO, and that, considering all the facts, the results of finance last year were by no means unsatisfactory. No doubt, the House had to face a deficit, but not so serious a one as stated. It would probably be about L 500,000 or LOOO,OOO, chiefly thi-ough the falling- off in the land revenue. Major Atkinson had over-estimated on one hand and underestimated on the other, and the position was by no means so gloomy as depicted. Mr. George M'Lean contended the prospects were even more gloomy than predicted, for under the present pressure for monay the revenue was sure to fall off. The country would not bear increased taxation. Messrs. Moss and Reader Wood defended the late Ministry. If they had done wrong, they had only imitated their predecessors. Mr. Wakefield, at considerable length, replied to Sir George Grey and Mr. Ballance, and condemned the reckless finanoing of the late Government. After some remarks from Messes. Pyke and Turnbull. Major Atkinson replied, and the Public Revenues Bill was then introduced, and passed through all its stages. Mr. Hall then moved that the House should adjourn. Mr. Sheehan wished to revert to the debate which, arose on the introduction of the Electoral Bill, and complained that Mr. Hall had committed a breach of faith. Mr. Hall denied this, and said that the Government would not be coerced. The Speaker ruled that no new business could be entered on, as it was after 12.3 a Mr, Hislop intimated that, if the Government continued to defy the majority in the House, he would, if only five stood by him, oppose all supplies. Mr. Whitaker defended the course the Government had taken. Mr. Macandrew said they were outflanked for the day, and had only to submit. The House adjourned at 1.20 a.m.