MR BALLANCE

Patea Mail, 28 May 1881, Page 3

MR BALLANCE

ON LOCAL QUESTIONS. Mr John Ballance, M.H.R., addressed his constituents in the Waverlej* portion of his electoral distinct on Thursday evening, in the new Town Hall. The attendance was moderate, the settler class not being numerously represented. Mr H. F. Mason was voted to the chair. Mr Ballance reviewed the events of the last session, with incidental criticisms on Major Atkinson’s recent speeches in this district. The address was the same in substance as that previously delivered at Wanganui, with some additions. LOCAL SUBSIDIES. He expected the Government will come down with a cry that the session this year is the last, and that if they get through a Representation Bill and one or two social bills, this amount of legislation will be sufficient ; so that on the question of subsidies the local bodies will be again staved off with the miserable composition of 7s 6d in the pound which they are now receiving, or perhaps ss. Mr Ballance would not say what the exact scheme for assisting local bodies ought to be, but the country should be opened up and the great work of colonisation be carried on. His impression is that the whole of the land fund should be distributed among the local bodies, and should be principally used for making new roads and performing the work of colonisation. The fund should not be doled out to local bodies through a political board. TAXATION SCHEMES. Referring to Major Atkinson’s condemnation of an income tax, he said no one has yet proposed that tax in addition to a land tax. In England the land tax is called the property tax, and is levied on the rental of the land, the occupier paying two-thirds and the owner one-third. There is also an income tax to catch professional men and tradesmen ; and that is what an income tax would do here. The injustice of the present property tax is greatly intensified since the land tax was repealed ; because that tax was to be only a portion of the general taxation, and the income tax was to catch professional incomes which now entirely escape. Some of the most affluent classes now escape under the property tax ; and besides professional incomes all the shipping in the colony escapes. Say two men have £6OOO each invested in business : one makes £750 in one year, while the other loses £250 on his year’s trading. Major Atkinson says both these persons should be taxed alike,

and so they are under the property tax ; but is that fair ? An income tax would touch the profit of the one trader, and leave untouched the loss of the other trader. What caused the fall of the land tax was that it bore less hardly on the small man than it did on the big one ; and hence the tax was destroyed by the wealthy class. Large estates should be touched in a progressive ratio more than small ones, in order to compel large estates to be cut up for the benefit of the country. railways and borrowing. In the financial statement last session, it was said more borrowing must take place ; but Major Atkinson said at Patea that borrowing must cease. How are railways to be carried on? Mr Ormond suggests the sale or leasing of the railways; and Major Atkinson suggests grants of land to fill up the gaps. Both proposals, said Mr Bailance, are unstatesman-like. Railways are paying a little over 34 per cent., but no company would purchase with a prospect of making less than 5 per cent., and any purchase must therefore be at a depreciation. What is the object of selling the railways—to have the gaps filled up ? I say it would not be beneficial to the colony to part with the railways upon the only conditions that private companies would purchase them. THE PATEA GAP. As to the piece between Waverley and Hawera, suppose a public company completes it, on what terms will they do it? Are thej' to work that piece, or are they to hand it over finished to the Government? 1 say it is impossible lo work a gap of that kind in the middle of a main line ; and it they are to hand it over to the Government, what advantages are to be got in the shape of profits from this piece which the Government ought to construct ? My idea is this. The eiy for no borrowing is simply a timid cry arising from the reaction passing over the colony. 1 think there is one safe principle upon which

borrowing can continue. After considerable reflection I have come to the conclusion that farther bon owing in the way it has been carried on—borrowing in large sums, and then allowing lines of railway to be scrambled for—would bring disaster to the colony. I do think these gaps in the main lino ought to be filled up by a system of judicious borrowing ; the lines first having been approved and scheduled by Parliament as parts of main lines which would contribute to the better paying of these lines when the parts were constructed. And then the test would be, what is the yearly increase or increment derived from our railways. If our income is £15,000 more this year than the year before, that means a borrowing power of £300,000, capitalised at 5 per cent. PRIVATE RAILWAYS. There is another class of railways, such as the Wellington to Foxton line, the Canterbury to Westland line, and others for opening mines and quarries : I think we should allow private enterprise to come in very largely to construct these lines. We might then deal with our waste lands by giving alternate blocks to the constructing companies in proportion to the amount of lines constructed, and the lands should be settled as the ordinary Crown lands are settled. The effect would be that the alternate blocks remaining to the Government would become more valuable, and the Crown would not lose by the operation. Besides, if the grants were made subject to the law of settlement, we should have people placed on the railway blocks. THROUGH RAILWAY. I am asked to say something about the completion of the Coast rail way,and it is said I shall have to answer very much for ray opposition to the Wellington section. As to the gap in this district, £117,000 was put down last session for this railway. I asked the Minister of Public Works whether this sum was intended to cover the cost of the main line between Waverley and Patea, and he said it was. I asked him again whether it was intended only for the branch line from Patea, or for the main line. He said very emphatically, “ It is intended for the main line.” After that I expected there would be some amount of progress, and that this would not have been in the category of leisurely railways. An attempt has been made to re-survey this line, but while there is any amount of vigour shown on the other side of Hawera none is shown here. I say that considering this is a more settled part of the country, and that there is a greater prospect of this portion paying well, there should be the same amount of vigour in pushing on this part as there is northward of Hawera. As to the survey, when I get to Wellington I can make some enquiry.

It is said I am hostile to the line between Foxtou and Wellington. I don’t know whether you feel veiy strongly on that portion of the line, but I can say I was a member of the Ministry that first voted money for that line, and first made it possible. But Ido think they are going the wrong way about it. I don’t think a company can be formed to make the line upon a land basis. We found that overtures had to be made to the natives for the land, and Mr Travers thought overtures should not be made till the company had got the money in hand. That will enhance the value of the land in the ejms of the natives ; and I don’t think that would be acting in good faith to people who are to contribute money in London. I have expressed my opinion again and again that they were not proceeding in the proper way to the construction of that line. I am not so ’narrow as to think a railway wdll do harm to any district. LOCAL REPRKSE.STATION. There has been a slight misunderstanding with regard to my opinions. It is said I am satisfied with the representation as it is. If I thought that more members cannot be got for this coast, of course I am bound to say so. The census just taken shows that the population of the Wanganui County and town will be entitled to two members, and therefore you should consent to have a member for the County of Patea. Well, if the people of Waverley are willing to associate themselves with Patea, and if we can retain the same number of members, of course I should consult their interests. I don’t know whether they are willing. The position is this. The basis under the new census will not bo the basis of the Government bill next session, for the good and sufficient reason that the census altera the position. The Government bill was based on the census of ’7B ; and the basis was 6,000 far towns and 4,000 for rural districts. The population of the colony is now about 480,000. The bill of last session is supposed to give 90 members ; and dividing this into 480,000 gives an average of 5,383 as the standard

electorate. That is to say, if the representation is on the basis of population, every constituency should have about 5,300. If then we take Wanganui Countj' and town as a constituency, we have only >9,200 people. We are therefore below the standard for two members under the new proportion, which would be 10,600. How can I advocate that we should cut a portion of the present electorate away when the electorate is already too small to keep two members ? That might be done under the basis of ’7B, but I say that is now impossible. If it were possible to get two members for the town and County of Wanganui, and if the people of Waverley were willing to throw in their lot with Patea and have one member for that County, I should do best to bring that about. If, on the other hand, the people in this district are anxious not to be associated with Patea, but to remain with Wanganui, I should not be doing my duty to throw off my constituents. This is a matter in which I should consult their own feelings. The best system is the approximate population basis. Canterbury will not consent to be under-represented, nor will Auckland nor Otago. My impression is, we shall have to struggle to keep our representation. I don’t think it can be done, and 1 think we should remain as we are, connected as one electoral district. I shall try to give effect to your wishes. (Applause), OTHER TOPICS. Mr Ballance also referred, as in his previous address, to the native question and the Governor’s letter to Te Whiti ; and said that the tendency of the Government land policy had been wholly favorable to land-sharking ; that it is necessary to deal more liberally with deferred payment selectors ; that secondary education is too expensive, and objecting to the abolition of Education Boards ; that Bible reading in schools is very objectionable, though the clergy might read it to children after school hours; that the Hospital ;nd Charitable Aids Bill is bad in principle, because the distributing board would not be the rating body ; and that the Volunteer capitation should be restored. Questions to the Member were invited at the close, but none were put. Mr Winchcomb proposed a vote of thanks and confidence, and said all the questions seemed to have been anticipated in the speech. Mr Murdo M’Lean seconded, and the motion was carried without dissent. Thanks to the Chairman closed the meeting, which was remarkably quiet throughout.