MAJOR ATKINSON’S DEFENCE.

Patea Mail, Volume VI, Issue 541, 3 July 1880, Page 3

MAJOR ATKINSON’S DEFENCE.

Speaking in the no-confidence debate on Wednesday night, the Colonial Treasurer said the main error of the Public Works Policy was in not having abolished the provinces when initiated. He defended himself from the charge of basing all his finances on treasury bills. During the whole of his former term of office the treasury bills afloat had only been increased by £300,000. When he left office and Sir George Grey got in, there were £909,000 in the treasury, or fully £IOO,OOO over the sum sufficient to provide for all liabilities. The Grey Government had also had a loan of two and-a-half millions to spend, and they were responsible for, the present state of affairs: Mr Ballance for having persuaded people they had means which they Lad not; JVXr JVlacandrew far Laving manufactured a paper land fund and proceeded to spend it; and Sir G. Grey more than all, because, as Premier, he

could have stopped all that with a word. During their term of office they had spent £11,243,000, and left liabilities of £3,500,000. The people of the colony were not to blame, because as soon , as they could make their voices heard, they hurled those gentlemen from office. It was the Grey Government who caused the necessity for increased taxation, aind before they left office they had bills prepared to impose an Income Tax and raise the Land Tax to 2d an acre, —far more crushing taxation than that now proposed. The Government would not ask the House to interfere about Ministers’ salaries. They would simply cease to draw the full amounts. If the present Government had not done more in retrenchment it was because last session ended at Christmas, and the House met again in May. The time was very short, and a Royal Commission had been appointed to assist to collect information. He would not discuss the local finance proposals till the BilL containing •' them' was before the House. As to local subsidies, only three courses were open—abolish them, pay them out of the loan, or raise the amount by increased taxation. They chose the former. The Government were in earnest about retrenchment. They could effect this .by: dismissals (which, however, would not have immediate

effect”' in ■ saving, 'ns- a compensation must be paid.) . By rodacipg salaries. all round; and by / dimiiiisbiug the conveniences afforded the public, they would act immediately in the latter direction. Already'-their : departmental expenses .were £105,000 below those of 1878-9 in ten of the principal classes. The amount of extra taxation, proposed was only £240,000 over that proposed in ’7B-9. Ho defended the Property Tax at length, and said that so far from its drawing capital away, the monetary institutions did not “object to it, and he knew that large amounts of foreign capital were flowing in for investment. He hoped the Property Tax valuation would be generally accepted by the local bodies. He condemned the Land Tax especially as a means for bursting up largo estates, but the Government felt so strongly the evil of large family estates that next year they propose to introduce a bill to prohibit entail, and regulate the bequcatbal of land. He bad been unwillingly forced to the Beer Tax, The estimate of its yield was based on the previous short experience of it; but .instead of yielding more revenue than was estimated, the returns so far indicated that it would yield £4,000 a year less. Regarding the public works, they could not be slopped altogether; they must complete the works which would bring in a return or render other works more payable ; but they must strictly confine themselves to necessary and reproductive works, aud spend on these very gradually so as to extend the expenditure over the next two years. He advised the House after settling the question before it, to go on with the estimates, and refuse to pass more than a very few necessary Bills, and leave Ministers ■with a long recess to devote themselves to the real work of reform. There was no need of panic, if thrift and prudence were observed the colony could easily meet its difficulties; but the people must exercise self-denial and abandon luxuries.

Mr DeLatour moved the adjournment of the debate, and the House rose at midnight.