PARLIAMENTARY.

Poverty Bay Standard, Volume X, Issue 1119, 10 August 1882, Page 2

PARLIAMENTARY.

[PEB UNITED PRESS ASSOCIATION.] Legislative Council. WELLINGTON. This day. The Council met, but immediately adi jonrnod on the motion of Mr Whitaker until i next day, Mr Whitaker saying no business ! would be gone on with until the Want of ; Confidence motion in the House had been I disposed of, House of Tho House mot at 2.30. ’ Tho Ashburton Race Course Reserve Bill : was introduced and read the first time (Wright). Major Atkinson moved the second reading of the North Island Main Trunk Railway Loan Bill. Looking at the great importance of tho question of borrowing he would depart from the course he might otherwise have followed on the Government being placed on its trial and would give some explanation of the Bill itself. It would be most convenient to take this and the New Zealand Loan Bill together. In the Financial Statement the Government gave reasons showing the necessity for further borrowing. It was necessary again to reiterate these as he understood that it was what was to be called into question. Tho Government had to consider whether it was better to bring down one or two Bills, and after consideration decided on the latter course, by that means tho matter would be simplified and a greater amount secured for main trunk lines. They would be better able to resist undue pressure for branch and other lines. He understood everyone thought that the North Trunk line should be made, but the amendment intimated showed he was mistaken in this view. The loan was necessary and reasonable in the Colony, and to the best interests if the position of the Colony. When the Government had decided whether further 1 borrowing should take place they had oithpr . to decide in the affirmative or break faith with those parts of tho Colony waiting their time for railway communication. He ventured ; to siy that the Public Works scheme so Ur 1

as it had gone, had. been a decided success. The state of the Colony in 1870 was very different from what it was now and the taxation so far as the Customs duties per head were concerned was 5s less now thanjit was in 1870. The increase of taxation had been imposed on property and did not affect the laboring classes, supposing for argument sake that the Customs duties were increased which he positively denied, then its equivalent had been more than returned to population in the shape of free education again, wages were better now than in 1870, employment was easier got, and an enormous saving had been effected in travelling and hauling. He estimated that saving along atbetween £300,000 or £IOO,OOO, then again they had settled 100,000 persons in New Zealand from the Old Country, the condition of these people and their prospects had been vastly improved, and if they had done nothing more that was a great work. Such being the fact there was nothing in the present circumstances to make them shrink from further borrowing so long as they spent it on reproductive works. They had about a million and a half expended on works that were as yet incomplete and productive • they had a large number of men employed on these works, and a still larger number depended on these men, so that if they threw them out of work, as they would have to do if no more money were raised, they would be facing a serious responsibility. Indeed they had on hand only £435,000 to continue their expenditure on, and he hoped that broad fact would be borne in mind. That, with care, would carry them on for a few months, till the end, say, of next February. The total number of men employed now by Government contractors on Government work was about 3,000, and, with the number dependent on these, and the number required to supply them, there were at least 10,000 souls to be considered. Were these to be thrown out of work at mid-winter in view of these facts ? Government had two points to consider ; first, could the public works be carried on at a reduced rate of expenditure ? and second, whether money could be raised locally to go on with ? After careful consideration they found sufficient money could not be raised in the Colonies to carry on the work at even a reduced rate, and under these circumstances they felt they must go on the London money market. It was of course competent for Parliament to say all borrowing must cease, .but before doingjthat they would be bound to say how matters were to co on. What would be the case of the Colony if they ceased borrowing ? In February next or about the beginning of winter a great number of men would be thrown out of employment, and of necessity a large drain of capital would leave the Colony as a consequence • its weight would be greatly reduced j and affairs otherwise paralysed. A commercial crisis would occur. They were told that if they delayed borrowing their credit would increase and they would got theii’ loans at a cheaper rate ; the fact was any snoh saving could not in any way compensate them for the serious loss sustained in the meantime. Another argument was, a better scheme should bo devised for making this fresh burden fall on the class best able to bear it. Those who contended thus should submit a scheme and it would, if feasible, no doubt, be readily adopted, and not attempt to delay progress as was proposed. Regarding the North Island rail* way it was agreed that the loan should not be authorised until the direction of the line had been decided upon, and the difficulties with the Natives overcome. It was not intended to raise the money tiff this was done. He submitted that the proposals of the Government as a whole made the apportionment of money, os between the two Islands, fair. If they did not authorise the North Island loan now, when they were asked to pass it at some future time the South Island would be putting forward additional claims for another two millions and increased borrowing would have to be resorted to with the view of *atisfying these claims. It had been objected to that not more than half the money was to be employed on railways ; this had always been the case. He would ask them to go through the schedules of these works and say if there be any one that could be reasonably struck out. There was first the £200,000 for Native lands, they were already committed to that j public buildings, £BOO,OOO, that was to last for three years, they had been spending £IOO,OOO upon school buildings and it was well known every Boax’d was pressing for more than they got out of this sum ; £90,000 was engaged for lunatic asylums. So that members would see that their districts would be provided with less than they required. In these circumstances he would ask members to say if their schools and other buildings were not to be provided for out of the loan. Immigration was provided for - without population these difficulties were bound to increase • a continuous and regular flow of immigration did not tend to reduce, but rather to steadily increasing rate of wages. It was nominated immigration that was provided for, which everyone knew was the best class of immigration. He did not think anyone would object to the provision made for opening up Crown lands as that was reproductive. Regarding the goldfields provision, he thought that would be considered a reaaonable proposal. Harbors were also an expenditure which could be defended on Colonial grounds. The last item, the telegraph extension, was also a proposal which did not require to be defended. Tho rule laid down with regard to railways was that they were extend only to the main trunk lines, and in the case of branch lines will continue those alone likely to give the quickest return fox* their outlay. If the amendment had any meaning, it was that they were to have no loan at all, and that all public works were to be stopped for the preaent j either it meant that, or it meant a crafty proposal to get into office, and at once go on borrowing as before. If it was true as had been stated that Montgomery intended to continue the borrowing policy ; then it was difficult to understand what the amendment meant. He hoped explanation on that head would be given by the hon, member, and that he would speak plainly when he came to move his amendment. It was u matter of regret that tho notice of amendment had been so long delayed, The Financial Statement and proposals of tho Government had been before them for some months, and tho Loan Bills had been distributed two weeks : indeed tho contents of these Biiis were known when tho Public Works Statement was delivered a month ago; so that there was no excuse for nob bringing down tho amendment weeks ago. Either Montgomery’s amendment meant they were going to borrow or that they were not going to borrow, if the latter, it was easily disposed of, if the former, then the question simply was who was to administer leans and spend the money ? Considering tho unsatisfactory manner in which Montgomery's friends administered a previous loan there could bo no doubt of tho verdiot, Mr Montgomery in moving that the ; loan proposals of the Government were not at all satisfactory, combatted tho statement of tho Treasurer that tho Loan Bills had been distributed some weeks ago, whereas they were not distributed until tho Ist inst. That was a damaging statement, and ought not to have been sent broadcast over the Colony to the injury of tho Oppo- j sition. In the financial statement there was 1 no mention of two Loan Bills ; all that was ' said was about one bill. The first heard of i two bills was in the Public Work-’ statement, | and since then they had been kept* back, ; which was aimp'y a practice o? tho Treasurer, , who always kept back his important measures ; unt.il thu fug end of the session. Ho objected , to thu whole of the Lua.i proposals of Governmunt, and nut to any one bill. They <

were told that it was after consideration that two bills had been decided upon. In the financial statement there was no evidence of a second Loan Bill, and, as a matter of fact, he did not believe that until Members had assembled in Wellington, and pressure had been brought to bear, two bills were decided upon. He denied that Immigration would raise wages. In ] 878-9 they had a large immigration, and he asked what was the state of the case then ? Why did not the Treasurer compare it with that of two years ago, instead of with the present time ? They had to vote money then to keep these men in work, that was not like immigration raising wages. What he wished to see was that the burden of these loans should be placed on the right shoulders. He had never given it to be understood that he was against borrowing altogether for the extension of their public works, nor had he even objected to substantial justice being done to the North Island. Common prudence, however, suggested that the railway route should be decided upon before the money was allocated for the North Island line. It was simply said it was to be carried south from Te Awamutu, but nothing was said as to the direction in which it should be carried south. Again in the South Island he saw a similai’ proposal. A line was to be taken from Blenheim south. Was that line to be taken through one or two large estates only ? Was that not the ultimate intention ? And if it was, could it be said that these loan proposals were to be considered satisfactory ? No provision whatever was proposed for the Middle Island! That and the West Coast line in this loan proposal meant £200,000 per year for interest, and it was very necessary indeed that they should know how and by what means that sum was to be provided ? For the Colony was just getting its head above water, and it was requisite that this additional weighing should be carefully looked into. The Treasurer should have asked for a moderate amount, say half a million to complete railways, and carry on till next session railways w-ell advanced, aad then bring down a more elaborate proposal next year when they were better prepared with their plans, and not have proposals for railways along routes of which they to have but little idea. If they desired the efficient carrying out of public works it was most important that they should not give too much money into the hands of the Government at once. He thought it would bo far more prudent to delay these large loan proposals for a year, and in the meantime the feeling of the Colony would bo ascertained, and then next session they would be in a position to shape their eourse accordingly. The Opposition did not want to waste time over this debate, and he hoped, therefore, speaking for his party, that the debate would close tonight or at the latest to-morrow night. If they did win they would at least have the satisfaction of knowing that they had done their duty, but he was perfectly confident that they would win. The Hon. Johnston followed Mr Montgomery, and spoke ab some length in reply to him. Mr J, Buchanan moved, as an addition to the amendment, the words “ Inasmuch as it is inexpedient during this session to authorise any new Loan,” and he spoke against any large Loan at present. Major Atkinson said the Government never intended to raise a large Loan. They did not intend to raise the North Island million till they were in a position to determine the route of the line, and commence it • and as to the Three Millions Loan it was only intended to raise one million a year, and olanses to provide for this would be introduced. Mr Trimble spoke in favor of the Government proposals. The House was interrupted by the dinner adjournment. At the evening sitting Mr Sutton expressed regret that the Government could see no way to avoid further borrowing this year, and spoke strongly of the necessity for making property bear a fair share of the burden of taxation caused by borrowed money. He should support the Government, although not believing in borrowing, but because he could not let tli© Opposition geb in power on such an issue. Mr Bathgate strongly opposed further borrowing, and defended the Grey Government, and blamed the administration of the present Government, especially in having treated him, when in Britain, as if he were an ordinary emigration agent. Mr I. Wilson supported the Loan Bill. Mr Connolly warmly supported the Ministerial proposals, and especially their proposal relative to completing the trunk lines in both Islands. He urged the adoption of the Coast line from Blenheim south. Mr DeLautour strongly condemned the Government for generally incapable administration. The Premier was the only true Liberal amongst them, and he was dwarfed by his surroundings, and incapable associates. He contended that the burdens of taxation fell most unequally and unfairly on the industrial classes. Mr Hall denied that Mr Montgomery had given a single good reason in support of his amendment. He reviewed the administration of the present Government, and contrasted it with that of their predecessors, greatly in favor of the present Government. He defended the Loan proposals, and warned the House against allowing Grey, Macundrew, and Sheehan to get back into office. Mr Weston at some length opposed the Government proposals. Mr Beetnam moved the adjournment of the debate till 2.30 next day, and at 12.35 the House rose.